What to check before signing a property contract

Most buyers receive a contract and sign it within hours. Sometimes the pressure is real — a competing offer, an agent who says it won’t last — and sometimes it’s manufactured. Either way, the result is the same: people commit to the most significant financial decision of their lives without reading the document they’re signing.

This isn’t a criticism of buyers. Contracts are long, technical, and deliberately hard to skim. But there are a handful of things that are worth understanding before you sign, regardless of how much time you have. This guide walks through each of them.

The agent can tell you the contract is standard. What they can’t tell you is whether it’s right for your situation.

The cooling-off period

In Tasmania, residential property contracts typically come with a cooling-off period — a short window after signing during which you can withdraw from the contract, usually by paying a small penalty. It exists precisely because buyers sometimes feel pressured to sign before they’re ready.

What most buyers don’t realise is that the cooling-off period has limits. It doesn’t apply to auction purchases. It doesn’t apply if you waive it — which some contracts ask you to do as a condition of the offer. And it runs from the date the contract is formed, not the date you receive it, which can be earlier than you’d expect.

Before you sign, confirm whether a cooling-off period applies to your contract, when it starts, and what it would cost you to use it.

Special conditions

The standard terms of a contract are largely consistent across residential purchases. The special conditions are where things get personal — and where issues tend to hide.

Special conditions might cover:

• Finance approval — the deadline by which your loan must be formally approved, and what happens if it isn’t
• Building and pest inspection — whether you have the right to carry one out, the timeframe, and what you can do if it reveals a problem
• Settlement timing — whether the date is fixed or conditional on another event (such as the seller’s purchase settling first)
• Inclusions and exclusions — what stays with the property and what the seller is entitled to take
• Unusual obligations — work that must be done before settlement, permits that must be provided, or conditions specific to that property

Read every special condition carefully. If any of them are vague, one-sided, or inconsistent with what the agent told you verbally, that’s worth raising before you sign.

Finance date

The finance condition in your contract gives you a set number of days to obtain formal loan approval. If you don’t get approval in time and haven’t requested an extension, you may lose your right to withdraw from the contract on finance grounds.

This date matters more than most buyers realise. Lenders don’t always move quickly, and delays in providing documentation, valuations, or approvals are common. If your finance date is tight, that’s something to know upfront — not a week before it’s due.

Check the finance date in your contract and compare it against your lender’s expected timeline. If there’s a mismatch, an extension can usually be negotiated before signing rather than under pressure afterward.

Settlement date

The settlement date is the day ownership transfers and you pay the balance of the purchase price. It’s not flexible once the contract is unconditional — missing it can have financial consequences for both parties.

Before you sign, check that the settlement date is realistic for your circumstances. If you’re selling another property at the same time, the dates need to align. If you need time to arrange funds, organise removalists, or manage a tenancy, that timing needs to be built into the contract — not managed around it afterward.

Deposit terms

Most contracts require a deposit to be paid shortly after signing — typically a percentage of the purchase price. Check the amount, the payment deadline, and who holds it.

Also worth checking: what happens to your deposit if the contract falls through. The answer depends on the circumstances, the specific terms of your contract, and which party was at fault. In some situations, a deposit is refundable. In others, it isn’t. Understanding this before you pay it is better than being surprised afterward.

The property itself

The contract describes what you’re buying. It’s worth checking that description against what you understood the sale to include.

• Are the inclusions (appliances, fixtures, window coverings, outdoor equipment) listed, or assumed?
• Does the contract reference any easements, covenants, or encumbrances on the title?
• Is the property description consistent with the land area, boundaries, and any structures you’ve seen?

Searches ordered after signing will reveal more detail, but the contract itself will sometimes contain references to known issues — disclosure of disputes, encroachments, or works without permit. These are worth reading before you’re committed.

Signing under time pressure is normal. Not understanding what you’ve signed shouldn’t be.

What to do if you’re not sure

If any part of the contract is unclear, or if something doesn’t match what you were told, you have two options: ask the agent to clarify in writing, or send the contract to a conveyancer or property lawyer before you sign.

A pre-signing review doesn’t take long and doesn’t commit you to anything. It gives you a plain-English summary of the key terms, flags anything worth negotiating, and lets you sign with confidence rather than hope.

Once you’ve signed and the cooling-off period has passed, your options narrow considerably. Most contract issues are much easier to resolve before that point than after it.