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Job 03 of 05

Offers, and when a home sale becomes binding

An offer, even a spoken yes to one, is not yet a sale. In NSW neither the buyer nor the seller is legally bound until signed copies of the contract are exchanged, while in Victoria and Queensland the sale binds once both of you have signed the contract.

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Rules from
NSW · VIC · QLD · SA · WA · NT

General information, not legal advice. The exact moment a contract binds can turn on its own terms; a solicitor or licensed conveyancer can tell you where it falls in your sale. Victoria’s page on selling property by private sale is a clear starting point; in other states, check your fair trading or consumer affairs body.

Where the line falls

The moment each state treats as binding

Each track below runs in order, as the state describes it. The filled step is the point the state’s own page names as the moment the sale binds.

  • NSW
    1. Buyer agrees to buy
    2. Each side signs one copy
    3. Copies exchanged

    Once a buyer agrees to buy, both parties sign and exchange contracts. There are two copies; buyer and seller each sign one before they are exchanged. Neither side is legally bound until the signed copies are exchanged.

  • VIC
    1. Offer, spoken or written
    2. Buyer signs the contract
    3. You sign it too

    An offer may come verbally or in writing. The buyer signs the contract of sale to make a formal offer, and you accept by signing it; the property is sold when you have both signed.

  • QLD
    1. Buyer signs the contract
    2. You sign, or counter
    3. Both have signed

    A buyer makes their offer by signing the sale contract, and it becomes binding once you and the buyer have both signed. If you counter-offer, the buyer can accept by initialling your changes, and the contract then becomes binding.

  • SA
    1. Offer
    2. Sale contract signed

    South Australia’s page for buyers says an offer is not binding until a sale contract is signed.

  • WA
    1. Offer and acceptance form
    2. All terms agreed
    3. Form signed

    In Western Australia the offer and acceptance form is not a binding contract until buyer and seller agree on every term in it; once signed, it becomes a binding contract of sale, and each party gets a signed copy.

  • NT
    1. Two copies prepared
    2. Both signed
    3. Copies exchanged

    Two copies of the contract are prepared, signed and exchanged, and the Territory says the contract does not bind until the copies are exchanged.

Tasmania and the ACT are not covered here.

Before the line

What an offer is, and is not

Victoria sets out the position before signing most fully, so its rules lead here. A buyer may put an offer to you verbally or in writing, and a written offer may sit in the contract of sale itself, which you would also sign if you accepted. A buyer can withdraw an offer at any time before you accept it.

  • Under offer is not sold. In Victoria, an offer does not stop other buyers offering or viewing; the property stays on the market until you and a buyer agree on price and sign a contract.
  • A deposit is not a promise. Victoria says a deposit paid with an offer is returned to the buyer if you don’t accept the offer. In NSW, an expression of interest deposit paid before exchange shows the buyer is serious, but obliges neither the buyer to buy nor the seller to sell.
  • An offer can carry a deadline. In Victoria a buyer can set a lapse date for their offer in the contract itself.
  • An offer can carry conditions. In a Victorian private sale, the contract can be conditional if you agree: subject to a loan, a satisfactory building inspection report, or other conditions.
  • The highest figure need not win. Victoria notes a seller may reject an offer for reasons other than price, such as its conditions, for example one asking for a longer settlement period.
At the table

Counter-offers, changes and copies

Without an agent, counter-offers and changes pass between you and the buyer. In Queensland, a counter-offer is accepted when the buyer initials your changes. In Western Australia, the parties can add special conditions to the contract, and Consumer Protection advises that every amendment and extra condition be signed and dated.

Copies matter too. In Victoria, all parties who sign the contract must be given a copy.

The states’ own cautions to sellers

Victoria: “Do not accept an offer unless you are completely satisfied and willing to sell at that price.” Queensland: “Before signing, take a copy of the contract away and discuss it with your solicitor.” Nor should you be pushed into signing without legal advice; don’t sign if you are not comfortable with the sale.

After the line

Once the contract binds

NSW says that when a home is sold by private treaty the buyer has a cooling-off period, usually 5 working days after exchange, and the seller does not get the same right. Once contracts are exchanged, NSW says the seller is legally bound to complete the agreement. What happens if the buyer uses theirs is job 05, if a buyer walks away.

Western Australia describes one more case. A property is “under offer” when an offer has been accepted and the contract has conditions still to be met. Consumer Protection WA says a seller can consider other offers only where the contract uses the standard REIWA conditions and is conditional on the sale of the buyer’s existing property. In that case, a seller who wants to accept a new offer must notify the original buyer, who has 48 hours to make their offer unconditional or the contract ends; and if the original buyer does make it unconditional, the seller cannot accept the new one.

The figure you accept is your own decision. Job 04 sets out what the official sources offer an owner working out a price.

The rest of the board

The other four jobs