What the contract does
A property contract records the agreement between the buyer and seller. Once the contract has been formed, both parties are bound by its terms, subject to any conditions, cooling off rights and other rights that may apply.
The current standard residential form is the Contract for Sale and Purchase of Residential Real Estate, prepared by the Queensland Law Society and the Real Estate Institute of Queensland.
The contract records matters including the purchase price, deposit, settlement date, inclusions, exclusions and any conditions applying to the purchase. Special conditions can change the rights and obligations of either party and should be drafted or reviewed by a Queensland solicitor.
A selling agent may assist with preparing the contract, but they do not provide independent legal advice to the buyer.
Depending on its terms, a contract may include dates for finance, building and pest inspections, other due diligence and settlement. Confirm what each date means and whether the proposed timeframes are workable before signing.
Review the seller disclosure documents
For most sales of freehold land in Queensland, the seller must give the buyer a completed Form 2 Seller Disclosure Statement and prescribed documents before the buyer signs the contract. Limited exceptions apply.
The disclosure material may include information about the title, registered interests, survey plan, rates, zoning, notices and body corporate arrangements where relevant.
The statement does not replace the buyer's own investigations. It does not provide complete information about matters such as flooding, structural soundness, pest activity, building approvals, development approvals, planning restrictions, connected services or asbestos.
Have your solicitor review the disclosure documents and explain any missing, incomplete or concerning information before you sign. Your solicitor can also advise you about any rights that may arise if the disclosure requirements have not been met.
Seller disclosure provides useful information, but it is not a complete property assessment. Building, planning, flood, pest and other investigations may still be required.
Understanding conditions
Conditions can provide important protections, but the rights they create depend on their wording. A condition may allow a buyer to terminate or take another step in particular circumstances. Have your solicitor confirm that each condition provides the protection you intend.
Finance condition
Makes the contract conditional on finance being approved by the specified date and on the terms stated in the contract. Pre approval is not formal approval. Ask your solicitor and finance adviser whether a finance condition is appropriate for your circumstances.
Building and pest condition
Allows time for specified building and pest inspections. The buyer's rights depend on the condition, the reports and the circumstances. Confirm the timeframe and process with your solicitor before signing.
Due diligence condition
May provide a defined period to investigate matters such as title, council records, planning controls, flood information, surveys and the intended use of the property. The scope and wording should be reviewed by a solicitor.
Body corporate condition
May provide time to investigate body corporate records, financial information, levies, insurance, meeting minutes and proposed expenditure. Seller disclosure documents do not necessarily contain everything a buyer may want to review.
Subject to sale
Makes the purchase conditional on the sale of the buyer's existing property, subject to the wording and dates included in the contract. Whether a seller will accept this condition depends on the circumstances.
Special conditions
Additional terms dealing with matters specific to the purchase. Special conditions should be drafted or reviewed by a Queensland solicitor so their effect is properly understood.
The cooling off period
Queensland law provides a cooling off period for most residential property purchases. It is a safety net, though it comes with a cost and does not apply in all situations.
If a buyer signs a contract and then changes their mind during the cooling off period, they can generally withdraw, though a termination penalty of 0.25% of the purchase price may apply.
The cooling off period generally begins when the buyer receives a copy of the contract signed by both parties. It commonly applies to private treaty sales of residential property, though exceptions can apply.
A buyer may waive or shorten the cooling off period by giving written notice to the seller. This is sometimes proposed in competitive situations to make an offer more attractive, though buyers should obtain legal advice before giving up or reducing this statutory protection.
The cooling off period is not a substitute for due diligence. Five business days may not be enough time to complete a building inspection, finance assessment, title search, flood certificate and planning check. Use it as breathing room, not as your investigation window.
The cooling off period does not apply when a buyer successfully purchases at auction. Limited exclusions can also apply to some contracts entered after an unsuccessful auction. Obtain legal advice and complete the necessary checks before bidding or signing.
The deposit
The deposit amount and payment timing are recorded in the contract. Queensland law does not prescribe a standard deposit amount for an ordinary residential property purchase. The amount is negotiated between the parties.
A deposit may be paid in one amount or divided into an initial deposit and a balance deposit. Confirm the amount, due dates, payment destination and consequences of late payment with your solicitor.
The deposit is commonly held in a trust account until settlement. What happens to it if the contract ends depends on the contract, the reason for termination and whether the required process was followed.
If a buyer defaults under an unconditional contract, the seller may have rights in relation to the deposit and other losses. Obtain legal advice immediately if there is any risk that the purchase cannot be completed.
Do not agree to the early release of a deposit without obtaining advice from your solicitor about the risks and available protections.
What to negotiate
Price is only one part of an offer. Conditions, dates, deposit arrangements, inclusions and other terms can also affect whether the contract suits the buyer and seller.
Settlement period
The time between signing and settlement. Settlement periods are negotiated between the parties and should be confirmed with your solicitor, lender and any relevant inspectors. A longer settlement can help if you need more time to organise finance or sell an existing property. A shorter settlement may be attractive to a motivated seller.
Due diligence timeframe
The window available to satisfy conditions. The appropriate timeframe depends on the property and the checks required, and should be confirmed with your solicitor, lender and relevant inspectors so there is enough time to obtain inspections, flood certificates, planning advice and finance approval without rushing.
Price
Comparable sales can help a buyer assess the asking price and prepare a reasoned offer. The appropriate approach depends on the property, available evidence and the circumstances of the sale.
Repairs and rectification
If a building inspection identifies defects, a buyer may seek repairs, a price reduction or another agreed outcome. The buyer's rights depend on the contract and the relevant condition, and the seller may not be required to agree.
Early access
For buyers wanting to measure, plan or begin minor preparations before settlement, early access can sometimes be negotiated, typically subject to insurance and the vendor's consent, though there is no automatic right to it. This should be formalised in a special condition, not left as a verbal arrangement.
I look at whether the contract gives the buyer enough time to complete the appropriate legal, financial and property checks.
The aim is to understand the contract as a whole before deciding whether its terms work for you.
Inclusions and exclusions
The contract should clearly identify any inclusions and exclusions that matter to the buyer. Do not assume an item will remain because it appeared in marketing photographs or was discussed during an inspection.
Fixtures are generally items permanently attached to the property and are typically included in the sale unless specifically excluded. Examples can include light fittings, built-in wardrobes, dishwashers (if plumbed in), blinds, curtain tracks, air conditioning units and garden structures like pergolas and sheds, though classification can depend on the item and the circumstances.
Chattels are generally moveable items that belong to the seller and are typically excluded from the sale unless specifically listed as inclusions. Examples can include freestanding furniture, pot plants, portable appliances and the seller's personal belongings.
List important inclusions and exclusions clearly in the contract. Do not rely on verbal assurances or marketing photographs.
Confirming inclusions doesn't end at signing. A final check before settlement protects you from last-minute surprises.
The contract may provide an opportunity to inspect the property before settlement. Confirm the timing, purpose and process with your solicitor. Raise any missing item, damage or change in condition before settlement occurs.
Before you sign
A final checklist for the moment before you commit. If any of these are unclear, resolve them first.