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 an agreement on a sale price for both parties often feels like they’ve reached the finish line, however this agreement is really just the beginning of the most significant legal stage of the transaction. It is the point where intention becomes obligation, and where preparation, timing, and trusted advice are crucial. 

Below, our agents outline the key considerations to understand before exchange and as you move toward settlement. 

Have you reviewed the contract? 

The contract for sale does far more than confirm a price. It defines the rights, responsibilities and expectations of both parties, which is why careful review is essential. 

While this process should begin well before an offer is made or accepted, a final review before signing is critical. This is the time to closely review the conditions, dates, inclusions and any special clauses that may affect the transaction. Overlooking minor details may result in unexpected costs, delayed settlement or limitations on how the property can be used after purchase.  

Your solicitor or conveyancer can identify areas requiring clarification or amendment and manage negotiations with the other party. Once all details are agreed upon, the contract is ready for exchange. 

Are the contracts ready to be exchanged? 

Exchanging contracts is the legal turning point of a property sale. Two identical contracts are signed, one by the buyer and one by the seller, and then formally exchanged. 

At auction, this happens immediately after the winning bid is accepted. In a private treaty sale, contracts are usually signed separately and exchanged electronically or in person, coordinated by solicitors, conveyancers or your agent.  

Before proceeding to exchange, it is important to ensure that key elements are in place. Finance approval should be confirmed, inspections completed, and all negotiated terms accurately reflected in the contract. 

Once exchanged, both parties are legally bound, bringing certainty to the transaction and allowing the focus to shift to settlement. 

Do you have the deposit ready? 

At the time of exchange, the buyer is required to pay a deposit, typically ranging from 5 percent to 20 percent of the purchase price.  

This payment demonstrates commitment and secures the property while the sale progresses. The deposit is held in trust and forms part of the final purchase price, which will be adjusted at settlement.  

For buyers relying on finance, your loan approval must align with the exchange timeline. While pre-approval is a useful first step, lenders may still require final documentation before unconditional approval is granted. Your agent and conveyancer can help coordinate timing to ensure exchange proceeds smoothly.  

Have you taken note of the cooling-off period? 

In many cases, buyers are entitled to a cooling-off period once contracts are exchanged. The length of this period varies by state and territory, with extended timeframes often applying to off-the-plan purchases. 

A buyer may choose to waive the cooling-off period by providing a Section 66W certificate, or both parties can agree in writing to alter the timeframe. It’s important to understand that if a buyer withdraws during the cooling-off period, they may forfeit a portion of their deposit, depending on state regulations. 

Cooling-off rules differ across Australia, which is why local advice is essential before making decisions at this stage.  

Are you prepared for settlement? 

Following exchange, attention turns to settlement, the final stage of the transaction. The settlement date is outlined in the contract and is commonly around six weeks after exchange, unless otherwise negotiated. 

Settlement is when the ownership of the property officially transfers from seller to buyer. While neither party typically attends in person, solicitors, conveyancers and lenders coordinate the transfer of funds and documents. Final figures reflect the remaining balance of the purchase price, less the deposit, along with adjustments for rates, utilities and other outgoings. 

In many states, risk passes to the buyer at exchange; it may be beneficial to speak to your solicitor or conveyancer about arranging building insurance as soon as contracts are exchanged.  

A confident step forward  

Exchanging contracts is a moment that rewards preparation and considered advice. With the right support it will feel less of a legal hurdle and more of a confident step forward in the property journey. 

Beyond facilitating the sale, an experienced agent helps manage timing, communication and expectations between all parties, reducing friction as the transaction moves from agreement to settlement. 

Our experienced Belle Property agents are here to guide you through each stage, working closely with trusted conveyancers and finance professionals to ensure the process progresses with clarity and confidence. Speak with your local Belle Property office today.