A Contract Review Checklist for Buyers

Signing a contract of sale is the moment a property purchase becomes real, and it is also the last easy opportunity to catch a problem before you are legally committed. A proper contract review is more than a quick read-through, it is a systematic check of title, terms and disclosure documents against what you actually agreed to buy. Here is what that review generally covers and why each part matters.

Confirming the Title Matches What You Are Buying

The first step is checking the title details in the contract against the property you inspected, including the correct lot and plan number, boundaries, and any registered interests such as easements, covenants or caveats. A title search reveals whether anyone else has a registered interest in the property, and whether the seller named in the contract is actually the current registered owner. This step catches basic errors, like an incorrect lot number carried over from a previous sale, before they cause problems at settlement.

The same search also shows any outstanding notices or orders from council or other authorities that are registered against the title, and whether there are unregistered structures on the property that might not match council records. If a previous owner built a deck, garage or granny flat without the right approval, this is often the point where it comes to light, and it is worth raising with your conveyancer before you exchange rather than discovering it at settlement.

Reading the Special Conditions Carefully

Special conditions are the clauses added on top of the standard printed contract, and they are where most of the real negotiation and risk sits. This might include a finance clause with a specific deadline, a building and pest inspection condition, a clause dealing with a tenant already in occupation, or conditions relating to a subject-to-sale arrangement if you need to sell your own property first. Queensland's standard REIQ contract special conditions are a good example of how much can hinge on these clauses, and every state has its own conventions worth understanding before you sign.

Checking Finance and Inspection Deadlines

If your contract is conditional on finance approval or a satisfactory building and pest inspection, the deadlines attached to those conditions need to be realistic given your bank's timeframes and your inspector's availability. A finance clause that expires before your loan is formally approved leaves you exposed, since missing the deadline can mean the condition lapses and you lose the ability to rely on it. Your conveyancer should flag whether the dates in the contract actually work for your situation, not just whether the clause exists.

Verifying Inclusions and Exclusions

The schedule of inclusions and exclusions lists what fixtures and chattels are part of the sale, from light fittings and window furnishings to appliances like a dishwasher or built-in oven. Buyers are often surprised after settlement to find an item they assumed was included was actually excluded, or vice versa, simply because they did not check the schedule against what they saw during the inspection. This is a simple check but an easy one to skip when everything else about the contract feels routine.

Reviewing Zoning, Easements and Restrictions

Council and title searches reveal zoning classifications, registered easements, and any restrictive covenants that limit what you can do with the property, such as height restrictions or limits on future subdivision. If you have plans to renovate, extend or subdivide, this is the point to confirm the property's zoning actually supports what you intend, rather than assuming it does based on similar properties nearby.

Understanding the Deposit and Settlement Terms

The contract sets out the deposit amount, when it is due, and whether it is held in a trust account or a solicitor's or agent's account pending settlement. It also confirms the settlement date and what happens if either party needs to delay, including any penalty interest that applies. If you are using a deposit bond instead of a cash deposit, this needs to be reflected correctly in the contract terms as well.

Your conveyancer will also check how rates, water charges and any owners corporation levies are adjusted between buyer and seller as at the settlement date, so that each party only pays for the portion of the relevant period they actually owned the property. Getting these adjustments wrong is a common source of disputes shortly after settlement, so it is worth understanding how the figures are calculated rather than simply accepting the settlement statement without question.

Checking State-Specific Disclosure Documents

Every state has its own mandatory disclosure requirements attached to a contract of sale. Victoria requires a Section 32 vendor statement, NSW requires a contract with prescribed documents like a title search, planning certificate and drainage diagram already attached, and other states have their own equivalents. A conveyancer checks that all required disclosures are actually present and accurate, since missing or incorrect disclosure can, in some circumstances, give a buyer grounds to rescind. A residential purchase in any state benefits from this check regardless of which state's specific rules apply.

Body Corporate or Strata Documents for Units

If you are buying a unit or townhouse, the contract review extends to whatever strata or owners corporation documents are attached or required, covering levies, by-laws and the scheme's financial position. This is a separate exercise from the physical building and pest inspection and needs to happen alongside the rest of the contract review rather than as an afterthought. MoneySmart's guide to buying a house outlines this alongside the other checks a buyer typically works through before exchange.