What a property sale contract includes.
A contract of sale is the formal, legally binding agreement that outlines the terms of a property purchase. Once both the buyer and seller sign it, the contract becomes enforceable—so understanding what’s inside it is essential.
This document sets out exactly what you’re buying, under what conditions, and what obligations both parties must meet before settlement. Even though it may look straightforward at first glance, a contract can contain important details that affect your rights, your finances, and your experience through the buying process.
What the contract of sale typically includes
While formats vary between states and conveyancers, most contracts include the following core components:
1. Property details
Legal description (lot and plan numbers)
Street address
Title information
Any easements, covenants or restrictions
This section clarifies exactly what land and rights you are purchasing.
2. Purchase price and deposit terms
The contract states:
The agreed purchase price
Deposit amount required
When the deposit must be paid
Whether the deposit is held in trust
The deposit is usually 5–10% of the purchase price, unless negotiated differently.
3. Settlement date
This is the date ownership formally transfers to you and funds are exchanged.
Common settlement periods:
30 days
45 days
60 days
But the parties can negotiate any timeframe.
Delays can create complications, so selecting the right settlement period is important—especially if you’re synchronising a sale and purchase, organising finance or coordinating moving dates.
4. Parties to the agreement
The contract identifies:
The buyer(s)
The seller(s)
Their legal representatives
Contact details
This ensures clarity about who is responsible for fulfilling each obligation.
5. Inclusions and exclusions
This part outlines what is or isn’t sold with the property, such as:
Included:
Light fittings
Curtains and blinds
Built-in furniture
Air-conditioning units
Fixed appliances
Excluded:
Portable items
Outdoor furniture
Whitegoods not built-in
Always review this carefully to ensure everything you expect is listed.
6. Special conditions
These clauses can be added to protect both parties. Common examples include:
Subject to finance approval
Subject to building and pest inspections
Repairs to be completed before settlement
Contract conditional on sale of another property
Adjustments to settlement dates
Special conditions can significantly impact your rights, so they should always be reviewed by a solicitor.
7. Disclosure statements and attachments
Depending on the state or territory, the contract may include:
Vendor disclosure statements
Title searches
Zoning information
Certificates showing compliance (e.g., smoke alarms, pool barriers)
These documents help confirm the property meets legal requirements.
Why a legal review is essential
Even if everything seems straightforward, always have a solicitor or conveyancer review the contract before signing, or at minimum during the cooling-off period.
They will:
Check for clauses that may disadvantage you
Confirm the contract aligns with verbal agreements
Identify unusual or risky conditions
Explain your rights and obligations
Recommend amendments if needed
Ensure timelines are realistic based on lender turnaround times
This protects you from misunderstandings, hidden risks, or clauses that could cost you money later.
Understanding your obligations
When you sign the contract, you agree to:
Pay the deposit
Complete due diligence within agreed timeframes
Comply with conditions (e.g., arranging inspections)
Be ready for settlement with funds available
Failing to meet obligations can result in penalties, loss of deposit, or legal action.
This is why strong pre-approval, clear contract dates and quick inspections are crucial.
Let’s chat.
Need help reviewing contract conditions via a referral to a great conveyancer? Let’s chat.
This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.