A property contract of sale is the legally binding document that records the terms of a property purchase — the price, settlement date, deposit, inclusions, special conditions and the vendor’s disclosure obligations. Reading it carefully before signing is one of the most important steps any buyer can take. This guide explains what to look for and what to ask your conveyancer.

What Is Included in a Contract of Sale?

A standard Australian contract of sale includes: (1) parties — buyer and vendor details; (2) property description — address, title details, lot and plan number; (3) purchase price and deposit amount; (4) settlement date; (5) inclusions and exclusions — what stays with the property (fixed appliances, blinds, light fittings) and what does not; (6) special conditions — any conditions agreed between buyer and vendor; (7) the vendor’s statement (Section 32 in Victoria) — disclosures about the property’s title, zoning, outgoings and any encumbrances.

Key Clauses to Check Before Signing

Always check: the settlement date (is it achievable with your finance?), the deposit amount and when it is due, any special conditions (finance, building inspection, subject to sale), what is included and excluded, any easements or covenants on the title, the zoning and any planning overlays, the vendor’s outgoings (council rates, owners corporation fees), and any notices or orders affecting the property.

Red Flags to Watch For

Red flags include: a very short settlement period that may not allow time for finance approval, unusual special conditions that favour the vendor, missing or incomplete Section 32 disclosures, planning overlays that restrict development, outstanding orders or notices from council, high owners corporation fees (for apartments and townhouses), and any caveats or mortgages on the title that the vendor will need to discharge at settlement.

Do I Need a Conveyancer to Read a Contract of Sale?

Yes. While this guide helps you understand the key elements, a licensed conveyancer or solicitor should review the full contract before you sign. They will identify issues you may miss, negotiate special conditions on your behalf, and manage the settlement process. In Victoria, always request the Section 32 Vendor Statement alongside the contract — it is a legal requirement and contains critical disclosures.

Frequently Asked Questions

Can I negotiate the terms in a contract of sale?

Yes — price, settlement date, deposit, inclusions and special conditions are all negotiable. Your conveyancer or buyers advocate can help you negotiate terms that protect your interests before you sign.

What happens if I sign a contract and then change my mind?

In most Australian states there is a cooling-off period of 3-5 business days after signing. If you withdraw during this period you may forfeit a small percentage of the purchase price (typically 0.25%). After the cooling-off period, withdrawing from a contract can result in forfeiture of the full deposit and potential legal action by the vendor.

What is a sunset clause in a contract of sale?

A sunset clause sets a deadline by which the sale must settle. If the deadline is not met — for example in an off-the-plan purchase where construction is delayed — the contract may be terminated. Buyers should be cautious of sunset clauses in off-the-plan contracts as vendors have historically used them to exit contracts when prices have risen.

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