Contract of sale for buying a home

Seller disclosure statement

From 1 August 2025, if the seller does not comply with the seller disclosure scheme—even if it was unintentional—you may be able to terminate the contract. You may do this anytime up to settlement if the seller:

• doesn’t give the disclosure documents before you sign the contract
• provides inaccurate or incomplete information.

In cases of inaccurate or incomplete disclosure, you must show:

• the issue was material (see section 6.1 of our guide)
• you were unaware of it at the time of signing
• you would not have signed the contract had you known the truth.

However, if the failure or inaccuracy is also a failure to comply with another Act, the consequence provided in the other Act will apply instead.

Learn more in our Guide to the seller disclosure scheme.

What's included in the contract of sale

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.

The warning statement must say:

‘The contract may be subject to a 5-business-days statutory cooling-off period. A termination penalty of 0.25% of the purchase price applies if the buyer terminates the contract during the statutory cooling-off period. It is recommended the buyer obtains an independent property valuation and independent legal advice about the contract and their cooling-off rights before signing.’