Contract terms you need to know

Property Contract Terms You Need to Know

Signing a property contract is one of the biggest financial commitments most people make. Yet many buyers and sellers put pen to paper without fully understanding what they’ve agreed to. A few key terms can mean the difference between a smooth settlement and a costly dispute.

At Cairns Conveyancing Solicitors, our conveyancer in Cairns sees the same misunderstandings come up again and again. Here’s a plain-English guide to the contract terms that matter most.

Quick Introduction:

• Queensland residential property sales use a standard contract prepared by REIQ and the Queensland Law Society – updated in August 2025.
• The contract date drives most key deadlines, including finance and settlement dates.
• Buyers carry risk from 5pm on the first business day after the seller signs – not from settlement.
• A finance clause, building and pest inspection clause, and cooling-off period each carry strict timeframes.
• Special conditions must be carefully worded – agents can’t write them, but your solicitor in Cairns can.
• Sellers now have mandatory disclosure obligations under Queensland’s new seller disclosure regime.

Top Terms You Need to Understand in Property Contracts

The Contract Date

This is the date the last party signs. It’s the anchor for everything that follows – finance approval, building inspections, and settlement. Most key deadlines are calculated from this date, so get it right from the start.

If you’re unsure how the counting works, your buyers conveyancer can walk you through it before you sign.

The Finance Clause

Most contracts are signed subject to finance, which gives you a set number of days – typically 14 – to secure unconditional loan approval. If your lender can’t get there in time, you can walk away without losing your deposit.

If you don’t formally terminate before the finance deadline, you may be locked in regardless of where your approval stands. The clause only protects you if you act on it correctly and on time.

Building and Pest Inspection

If this box is ticked in the Reference Schedule, you have a set period – usually 14 days – to arrange a licensed inspector to check the property. Serious problems give you the right to terminate or renegotiate the price.

Without this clause, you’re buying as-is. Whatever an inspector finds after settlement is your problem, not the seller’s.

Settlement Date

Settlement is when the property title transfer happens and the balance of the purchase price is paid. Standard in Queensland is 30 days from the contract date, though longer or shorter periods can be negotiated.

Missing settlement without a valid reason puts you in breach of contract. The other party may be entitled to terminate and claim damages.

The Cooling-Off Period

Buyers in Queensland have a statutory cooling-off period of five business days after signing. During that window, you can pull out – though a penalty of 0.25% of the purchase price applies.

It doesn’t apply at auction, and it can be waived in writing. Your buyers solicitor should always confirm whether the cooling-off period applies before you sign.

Risk Transfer

Here’s the one that catches most buyers off guard. Under the standard Queensland contract, risk passes to the buyer at 5pm on the first business day after the seller signs – not at settlement. If something happens to the property before you take the keys, you may be the one bearing the cost.

Insure the property from the day the contract is signed. Don’t wait until settlement day.

“Time Is of the Essence”

This phrase appears in nearly every Queensland property contract. It means deadlines are strict – miss your finance date, inspection date, or settlement date, and the other party may have the right to terminate and retain your deposit.

If a deadline is at risk, contact your sellers conveyancer or buyers conveyancer immediately. Extensions can often be negotiated, but only if you raise the issue before the clock runs out.

Inclusions and Exclusions

The contract lists what stays with the property and what the seller takes. Fixtures are generally included by default – think built-in shelving, blinds, and light fittings. Freestanding items often aren’t.

If you’re relying on something being there at settlement, get it listed as an inclusion in writing. Verbal promises don’t count once contracts are exchanged.

Seller Disclosure

Since 1 August 2025, sellers must provide buyers with a Form 2 Seller Disclosure Statement and prescribed certificates before the buyer signs. This obligation is set out in the Property Law Act 2023 (Qld).

If the disclosure isn’t provided correctly, or something material is left out, the buyer may have grounds to terminate before settlement. Our conveyancing for sellers team ensures your disclosure obligations are met properly from the outset.

Special Conditions

Special conditions cover situations the standard terms don’t – buying subject to selling your own home, early access, or works to be completed before settlement. They need to be precisely worded to be enforceable.

In Queensland, real estate agents aren’t permitted to draft them. That’s the job of a qualified solicitor in Cairns who understands how the clause will interact with the rest of the contract.

The Entire Agreement Clause

Most Queensland contracts state that the written contract represents the complete agreement between the parties. Anything said by the agent or the seller before signing is not binding unless it’s in the contract itself.

If a representation influenced your decision to buy, get it in writing before you sign.

Speak to Cairns Conveyancing Solicitors Today

Property contracts are legally binding from the moment both parties sign. Understanding what you’re agreeing to – and what happens if a deadline slips – is worth the time before you commit.

Whether you’re buying or selling, our team can review your contract, explain your obligations, and make sure nothing catches you out. Get in touch with a conveyancer in Cairns you can rely on.

Disclaimer: This blog is intended for informational purposes only and does not constitute legal advice. For guidance tailored to your specific circumstances, please consult a qualified legal representative.