In property transactions, agreement does not yet equal commitment. While a buyer and seller may feel aligned on price and terms, a sale only becomes legally binding once contracts are formally exchanged. Until that point, everything remains provisional.
Reaching agreement on a sale price can feel like the finish line, however it marks the beginning of the most significant legal stage of the transaction. This is where intention becomes obligation, and where preparation, timing and trusted advice are essential.
The contract for sale does far more than confirm price. It defines the rights, responsibilities and expectations of both parties, which is why careful review is critical. Conditions, dates, inclusions and special clauses should be examined closely, as small oversights can result in unexpected costs, delayed settlement or post-purchase limitations. Your solicitor or conveyancer can identify areas requiring clarification or amendment before the contract is ready for exchange.
Exchanging contracts is the legal turning point of a property sale. Two identical contracts are signed and formally exchanged, either immediately after an auction or, in private treaty sales, coordinated by solicitors, conveyancers or your agent.
Before proceeding, finance approval should be confirmed, inspections completed and all negotiated terms accurately reflected. Once exchanged, both parties are legally bound and the focus shifts toward settlement.
At exchange, the buyer is required to pay a deposit, typically between 5 and 20 per cent of the purchase price. Held in trust, this forms part of the final purchase price and demonstrates commitment. Buyers relying on finance should ensure loan approval aligns with the exchange timeline.
In many cases, a cooling-off period applies after exchange, with timeframes varying by state. Buyers should understand their rights and obligations, including potential penalties if they withdraw during this period.
Following exchange, settlement usually occurs around six weeks later, unless otherwise negotiated. Ownership transfers once funds and documents are finalised, and in many states risk passes to the buyer at exchange, making early insurance advisable.
Exchanging contracts rewards preparation and expert guidance. An experienced agent helps manage timing, communication and expectations, ensuring the transaction progresses with confidence and clarity.
To find out more, call the Belle Property Dural office on 9129 2882 today!
