Making an offer
You have found a place. Here is how to put an offer in writing and protect yourself while you do it.
Nothing is binding until both parties sign the contract.
That means you have time. Time to get your loan confirmed, your inspections done, and your conveyancer's advice. Conditions in the contract give you that time.
Rules vary by state. In QLD, the contract becomes binding when the second party signs, not at a formal exchange. Ask your conveyancer what applies to you.
In a private sale, you negotiate with the vendor through the agent. A verbal offer starts the conversation, but only a signed contract makes it real. Your conveyancer reviews the contract before you sign, and once both parties exchange signed copies, the deal is on.
From offer to keys
Six steps. Most take 6 to 12 weeks.
Day 1
Exchange of contracts
Both parties sign. Your copy goes to the vendor's solicitor, theirs to yours. This is exchange. The contract is now legally binding.
Day 1-5
Pay the deposit
Typically 5% to 10%, paid at or shortly after exchange. Held in a trust account until settlement. The amount is negotiable.
Days 1-5
Cooling-off period
In most states, you have 3 to 5 business days to withdraw (you forfeit a small percentage). No cooling-off at auction or if you waive it.
Weeks 2-3
Satisfy your conditions
Get formal finance approval. Complete building and pest inspection. Your conveyancer conducts searches. Each condition has a deadline set in the contract.
Week 1
Arrange insurance
In NSW and VIC, risk passes to you at exchange. In QLD, risk may pass at settlement (check your contract). Either way, arranging building insurance from exchange is the safest approach.
This is settlement
Settlement
The balance is paid, the title transfers to your name, and you get the keys. Your conveyancer and lender handle this via PEXA. Typically 30 to 90 days after exchange. 42 days is the NSW default. Offering the vendor's preferred date can strengthen your offer.
What protects you
These clauses let you walk away with your deposit if something goes wrong.
Subject to finance
The contract is conditional on you getting formal loan approval by a specified date. If your lender says no, you rescind and get your deposit back.
Timeframe: 14 to 21 calendar days (not business days). Can be extended by mutual agreement.
Genuine efforts: You must take real steps to obtain finance. Courts have held that a buyer who makes no applications or deliberately engineers a refusal cannot rely on this clause.
Watch: If you miss the deadline without notifying the vendor, the clause will likely lapse and the contract becomes unconditional. Set a reminder well before the date.
Subject to building and pest inspection
The contract is conditional on you being satisfied with the inspection report. If it reveals problems you are not comfortable with, you can rescind.
Timeframe: 7 to 14 calendar days (varies by state and contract). In NSW, 5 business days is a common negotiated timeframe. In VIC, the standard REIV contract does not include this condition by default, so buyers typically inspect before signing or must negotiate the clause in.
Watch: Check the wording with your conveyancer. Some clauses restrict your discretion to "major structural defects" only.
Other conditions: Solicitor's approval (2 to 5 days), subject to sale of existing property (vendor may add a kick-out clause), sunset clause (common in off-the-plan, with NSW and VIC buyer protections).
The deposit
How much: Typically 5% to 10%. Negotiable. In competitive markets, 10% is expected. A smaller holding deposit ($1,000 to $5,000) is sometimes paid first to show good faith.
Where it goes: Held in a trust account (usually the agent's) until settlement. Not in the vendor's pocket.
If the sale falls through: If you rescind lawfully (under a condition or during cooling-off), you get it back minus any forfeiture. If you default without valid reason, the vendor keeps it and may sue for damages.
Cooling-off periods
Private sales only. There is no cooling-off at auction in any Australian state or territory.
| State | Period | Penalty |
|---|---|---|
| NSW | 5 business days | 0.25% |
| VIC | 3 business days | Greater of $100 or 0.2% |
| QLD | 5 business days | 0.25% |
| SA | 2 business days | Varies |
| ACT | 5 business days | 0.25% |
| NT | 4 business days | Reasonable costs |
| WA | None | N/A |
| TAS | None (negotiable) | N/A |
In NSW, cooling-off can be waived with a solicitor's certificate (s 66W). Waiving is irreversible. Only do this if you have completed all due diligence and have formal finance approval. In VIC, the period starts when the buyer signs, not at exchange. Properties sold shortly after being passed in at auction may also have no cooling-off in some states. Confirm current rules with your conveyancer.
Making a strong offer
Research comparable sales
Know what similar properties have sold for. Your offer should reflect what it is worth, not just what the agent asks.
Get pre-approval first
A pre-approval letter shows the vendor you are serious and can settle.
Put a time limit on your offer
24 to 48 hours, in writing. Stops the agent using it as leverage.
Offer the vendor's preferred settlement
Ask the agent what works. A good settlement date can matter as much as a higher price.
Keep conditions reasonable
Finance + building and pest is standard. Too many conditions weakens your offer.
Do not reveal your maximum
The agent works for the vendor. Be polite but keep your budget to yourself.
Situations you might encounter
Important: This guide is general information only. It does not constitute legal advice, financial advice, or credit assistance. It does not take into account your individual objectives, financial situation, or needs. Property law, contract terms, and cooling-off periods vary by state and territory and are subject to change.
Before making an offer on any property, obtain independent legal advice from a solicitor or conveyancer in your state.
housematch.com.au is not a law firm, does not hold a legal practising certificate in any Australian jurisdiction, does not hold an Australian Credit Licence, and is not authorised to provide credit assistance or legal advice. We do not receive referral fees or commissions from any real estate agent, conveyancer, solicitor, or lender.
To the maximum extent permitted by law, housematch.com.au accepts no liability for any loss or damage arising from reliance on the information in this guide. Nothing in this disclaimer limits any rights you may have under the Australian Consumer Law.
This guide is reviewed when relevant legislation changes. Check with your conveyancer for the current rules in your state. Last reviewed: March 2026.
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