Buying or selling a property is one of the biggest financial decisions you will make. Whether you are purchasing your first home, upgrading to a larger property, investing in real estate or selling your existing home, understanding the terms of your contract is essential.
In Queensland, a property contract is a legally binding agreement that outlines the rights and obligations of both the buyer and seller. Overlooking even a small detail can lead to unexpected expenses, settlement delays or costly disputes.
Before signing on the dotted line, here are 11 important things to consider to help ensure your property transaction runs as smoothly as possible.
1. Check the Buyer's Names and Ownership Structure:
One of the first things to check before signing a property contract is that the buyer's legal name and purchasing structure are correct.
While this might seem like a minor detail, making changes after the contract has been signed can create unnecessary complications, additional legal fees and potential transfer duty implications.
Buyers should also consider how they intend to own the property, particularly when purchasing with another person.
For example, joint owners may purchase as:
Joint tenants: Where the right of survivorship generally means that, upon the death of one owner, their interest passes to the surviving joint owner or owners.
Tenants in common: Where each owner holds a defined share of the property, which can be equal or unequal and does not automatically pass to the other owners upon death.
Purchasing through a company or trust may also require additional consideration.
Our Tip: Confirm the correct buyer details and obtain advice about your proposed ownership structure before signing the contract. Changing these details later can be more complicated and expensive than getting them right from the beginning.
2. Understand the Deposit and When It Is Payable:
When purchasing property in Queensland, the contract will generally specify the deposit amount, when it must be paid and who will hold the funds.
Some contracts require an initial deposit shortly after signing, followed by a balance deposit at a later date.
It is important to understand these obligations because failing to pay a deposit by the required deadline may place you in breach of contract.
Depending on the contract terms and circumstances, the seller may be entitled to terminate the contract, forfeit deposit monies and potentially pursue additional losses.
Our Tip: Before signing, check the deposit amount and payment deadlines. Ensure you have sufficient cleared funds available and always verify the deposit recipient's bank details through a trusted, independently confirmed contact method to reduce the risk of payment redirection fraud.
3. Make the Contract Subject to Finance Where Appropriate:
If you are relying on a home loan to purchase a property, including an appropriate finance condition in your contract is particularly important.
A finance condition may allow you to terminate the contract if your loan application is unsuccessful, provided you comply with the requirements and deadlines specified in the contract.
However, having a finance condition does not automatically guarantee that you can terminate the contract or recover your deposit.
Under the standard REIQ finance provisions, buyers must take reasonable steps to obtain finance and comply with the relevant notification requirements.
If the contract is not subject to finance, you may still be legally required to complete the purchase even if your lender declines your loan application.
Our Tip: Even if you have obtained home loan pre-approval, consider whether a finance condition is appropriate. Pre-approval is not necessarily an unconditional loan approval, and your lender may still need to assess the property before confirming finance.
4. Include a Building and Pest Inspection Condition:
A building and pest inspection is an important part of purchasing property, particularly when buying an established home.
A qualified building inspector can help identify structural defects, maintenance concerns and other building issues, while a pest inspector can investigate termite activity, termite damage and other pest-related concerns.
Including an appropriate building and pest condition in your contract may provide you with the opportunity to terminate the purchase if the inspection reveals issues that justify termination under the contract.
However, not every minor defect will necessarily entitle a buyer to terminate.
It is also important to understand that building and pest inspections are commonly undertaken after signing the contract but before the relevant condition date.
Our Tip: Arrange your inspections as soon as possible after signing. If significant issues are identified, speak with your conveyancing lawyer before negotiating repairs, requesting a price reduction or attempting to terminate the contract.
5. Make Sure the Settlement Date Works for You:
The settlement date is the date on which the property transaction is completed, the balance purchase price is paid and the buyer becomes entitled to possession in accordance with the contract.
Choosing a suitable settlement date is important for both buyers and sellers.
For buyers, consider whether your lender will have sufficient time to prepare for settlement and whether the date aligns with your moving arrangements.
For sellers, consider whether the settlement date allows sufficient time to discharge any existing mortgage, arrange vacant possession where required and coordinate the purchase of another property.
Queensland's standard REIQ contracts generally include a mechanism allowing either party to extend settlement by up to five business days through a valid notice, subject to the contract's terms.
However, settlement extensions should not be treated as an automatic solution to poor planning.
Our Tip: Where possible, avoid booking removalists for the actual settlement day. Scheduling your move for the following day may help reduce stress and additional expenses if settlement is unexpectedly delayed.
6. Review the Inclusions and Exclusions:
Before signing a property contract, buyers and sellers should carefully review which items are included in the sale and which items will be removed before settlement.
Disputes can arise over items such as:
Dishwashers and other appliances.
Curtains, blinds and window furnishings.
Pool cleaning equipment.
Garden sheds and outdoor equipment.
Security cameras and smart home devices.
Light fittings and other fixtures.
Generally, fixtures attached to the property form part of the sale unless otherwise agreed, while movable items may need to be expressly included.
However, whether a particular item is a fixture or a chattel can depend on the circumstances.
Our Tip: If there is any uncertainty about an item, ensure the contract clearly states whether it is included or excluded. Never rely solely on verbal assurances from the seller or real estate agent.
7. Investigate Easements, Encumbrances and Title Restrictions:
When purchasing property, it is important to understand whether any easements, encumbrances or restrictions affect the land.
An easement may provide another party, such as a neighbouring property owner or utility provider, with certain rights over part of the property.
For example, an easement may relate to:
Sewerage or drainage infrastructure.
Access to neighbouring properties.
Electricity or other utility services.
Shared driveways or accessways.
Depending on the terms of the easement, these arrangements may restrict where you can build, renovate or install structures.
Other matters, such as registered covenants and restrictions, may also affect how the property can be used.
Our Tip: Ask your conveyancing lawyer to review the title search and relevant registered documents. If you intend to renovate, extend or develop the property, consider obtaining additional advice about planning restrictions, easements and building requirements before becoming unconditionally bound to purchase.
8. Carefully Review the Form 2 Seller Disclosure Statement:
Since 1 August 2025, Queensland's seller disclosure regime under the Property Law Act 2023 (Qld) has generally required sellers to provide buyers with a Form 2 Seller Disclosure Statement and prescribed certificates before the buyer signs the contract, subject to certain exceptions.
The Form 2 and accompanying documents provide important information about the property, including matters relating to:
Ownership and title details.
Certain registered and unregistered encumbrances.
Zoning and relevant statutory matters.
Rates and other prescribed financial information.
Body corporate information, where applicable.
However, buyers should understand that the Form 2 is not a comprehensive property condition report.
For example, the disclosure regime does not generally require sellers to disclose every issue relating to flooding history, structural defects, pest infestations or previous building approvals.
Buyers must therefore undertake their own investigations to determine whether the property is suitable for their intended use.
In certain circumstances, a seller's failure to comply with the disclosure requirements may give the buyer a statutory right to terminate the contract. However, these rights are subject to specific legal requirements and do not arise simply because the buyer discovers something they dislike.
Our Tip: Review the Form 2 and all accompanying certificates before signing the contract. If anything is unclear or concerning, obtain legal advice and consider whether further investigations or appropriate special conditions are required.
For further information, read our guide to the Form 2 Seller Disclosure Statement.
9. Investigate Body Corporate Matters When Buying a Unit or Townhouse:
If you are purchasing a unit or townhouse within a body corporate scheme, there are additional matters to consider beyond the physical condition of the property.
Owning a property within a body corporate scheme generally involves contributing to the maintenance, insurance and management of common property.
Before signing, buyers should investigate matters such as:
Body corporate levies: The regular contributions payable by lot owners.
Sinking fund: Funds set aside for future capital expenditure and major maintenance.
Special levies: Additional contributions that may be required for unexpected expenses or significant works.
Insurance: The body corporate's insurance arrangements and any relevant exclusions or excesses.
By-laws: Rules that may affect pets, parking, renovations and the use of common property.
Disputes and maintenance: Ongoing disputes, building defects or proposed major works.
A body corporate records inspection can help identify potential financial liabilities and other issues that may not be immediately apparent from the seller disclosure documents.
Our Tip: Consider obtaining a comprehensive body corporate records inspection before becoming unconditionally bound to purchase. A property with relatively low body corporate levies is not necessarily a better investment if the scheme has inadequate funds for future maintenance.
10. Have the Contract Reviewed Before Signing:
One of the most important steps in any property transaction is having your contract reviewed by an experienced conveyancing lawyer before signing.
Although standard REIQ contracts are commonly used throughout Queensland, additional special conditions can significantly alter the rights and obligations of buyers and sellers.
For example, special conditions may relate to:
Finance approval and building and pest inspections.
Early access or possession arrangements.
Tenancies and vacant possession.
Settlement extensions and associated costs.
Repairs or works to be completed before settlement.
The sale or purchase of another property.
Some special conditions may provide valuable protections, while others may create unexpected obligations or limit your contractual rights.
A conveyancing lawyer can explain the contract in plain English, identify potential risks and recommend amendments where appropriate.
Our Tip: Have your contract reviewed before signing, particularly where additional special conditions have been inserted. Once the contract is signed, changing its terms will generally require agreement between the parties.
You can also explore our Conveyancing Services for more information about the Queensland property transaction process.
11. Understand the Cooling-Off Period:
Many buyers are unaware that Queensland generally provides a statutory cooling-off period for residential property contracts.
For most eligible residential property purchases, buyers have five business days to reconsider their decision after entering into the contract.
During this period, a buyer may terminate the contract without needing to establish a particular reason.
However, the seller may be entitled to retain a termination penalty of up to 0.25% of the purchase price.
For example, on a property purchased for $1,000,000, the cooling-off penalty could be $2,500.
Importantly, the cooling-off period does not apply to every property transaction.
Certain transactions, including purchases at auction and some contracts entered into shortly after an unsuccessful auction, are excluded. Buyers may also waive or shorten the cooling-off period in accordance with the law.
Our Tip: Never assume that you can simply change your mind after signing a contract. Confirm whether a cooling-off period applies and understand the relevant deadlines, penalties and exceptions before committing to the purchase.
Final Thoughts: Get the Right Advice Before Signing:
Whether you are buying your first home, purchasing an investment property or selling your family home, understanding the terms of your contract can help prevent costly mistakes.
From checking ownership details and finance conditions to reviewing seller disclosure documents and investigating potential property issues, taking the time to understand your contractual obligations is essential.
While the conveyancing process can seem complicated, obtaining the right advice early can make the experience considerably smoother.
Need Help Reviewing a Property Contract in Queensland?
At Dylan & Inns, we assist buyers and sellers across the Gold Coast and throughout Queensland with residential conveyancing, contract reviews and property transactions.
Our team can help you understand your contract, identify potential issues and navigate the conveyancing process with confidence.
Before you sign, speak with Dylan & Inns to ensure you understand what you're agreeing to.
Contact Dylan & Inns to discuss your property transaction.
Disclaimer: This article provides general information about Queensland property contracts and conveyancing law. It does not constitute legal advice. Contractual rights and obligations depend on the specific terms of the contract and the circumstances of the transaction. You should obtain independent legal advice before signing a property contract.