Contract of sale for buying a home

When you've found property you like you can ask the seller's agent how to make an offer.

Usually you can:

• make a verbal offer
• fill out a form stating your written offer
• insert your offer into a contract of sale provided by the seller's agent.

If your verbal or written offer is accepted, the seller's agent will formalise the offer into a contract of sale for you to sign.

What's included in the contract

The contract sets out:

• the price you're offering for the property
• when you'll pay your deposit
• the time and date of settlement.

The contract only becomes binding when both you and the seller have signed it.

Before signing the contract, take a copy away and discuss it with your solicitor. Don't be pressured into signing a contract without seeking legal advice first.

A cooling-off period of 5 days applies to contracts for residential properties—you can change your mind during this time. The cooling-off period doesn't apply if you buy at auction.

Conditional sale

Your contract might be subject to certain conditions like:

• whether you get finance
• a successful building and pest inspection
• if you can sell your existing property.

You must check to make sure these conditions are in the contract when you sign it, otherwise they won't be legally binding. This is your responsibility.

If you're not sure about anything, ask your solicitor to check it before you sign.

Warning statement

A contract of sale must include a warning statement. The warning statement must appear directly above your signature block.