What is contract of sale?
The contract of sale is the legal document that records all terms of a property purchase — price, deposit, settlement date, special conditions, included chattels, vendor and buyer details. It's prepared by the seller's conveyancer and reviewed by the buyer's before signing.
The contract of sale (in some states the 'agreement for sale' or 'sale and purchase agreement') is the legally binding document recording the terms of a property purchase. It includes the purchase price, deposit amount and timing, settlement date, the title certificate and Section 32 / Section 27 / Form 1 statement (state-dependent), special conditions, and a list of included chattels.
Standard contracts in each state are pre-printed templates (Law Society or Real Estate Institute form), with special conditions added in handwriting or as schedule attachments. Common special conditions: subject to finance approval, subject to building & pest inspection, subject to satisfactory cooling-off, vacant possession at settlement, vendor warranties on undisclosed defects.
The buyer's conveyancer reviews the contract BEFORE signing — once signed and any cooling-off expires, the contract is binding on both parties. A 'subject to finance' clause is critical for buyers who don't yet have unconditional loan approval; without it, finance falling through means losing the deposit.
sale contract · purchase contract · agreement for sale
- Conveyancing — Conveyancing is the legal process of transferring property ownership — typically handled by a licensed conveyancer or so…
- Cooling-off period — Cooling-off is a statutory window (typically 3-5 business days, varying by state) after signing a property contract wher…
- Settlement — Settlement is the day the property legally changes hands — the lender releases the loan amount, the buyer pays the balan…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.