Reviewing a contract of sale before signing is one of the most important steps in any WA property transaction. Once a sale contract is signed and acceptance is communicated, it becomes legally binding. Unlike some other Australian states, Western Australia does not provide an automatic cooling-off period for most residential property purchases.
That means signing a contract without properly reviewing could expose you to significant financial and legal risks. In some cases, buyers may lose their deposit or face costly disputes if problems arise after signing.
A professional sale contract review can help identify potential issues before you commit.
In this guide, we’ll explain what a contract of sale is, what to check before signing, common risks buyers overlook, and when to engage a property lawyer in Perth to review the contract and protect your interests.
What Is a Contract of Sale in WA?
A Contract of Sale is the legally binding agreement that sets out the terms of a property transaction in Western Australia. It includes key details such as the purchase price, settlement date, special conditions, and the rights and obligations of both parties.
In WA the contract is generally made up of two documents:
- The Offer and Acceptance (O&A) is the record of the conditions of sale which have been agreed.
- The Joint Form of General Conditions governing the legal obligations of the buyer and the seller before the settlement.
These documents constitute the whole contract of sale together with specific conditions. The contract will be legally binding on signing by both parties and communication of acceptance.
What Is Included in a Contract of Sale?
No two property transactions are the same, however often a contract of sale in WA will include the following:
| Contract Element | What It Covers |
| Party details | Legal names of the buyer and seller |
| Property details | Address, title information, fixtures and fittings |
| Purchase price | Agreed purchase amount and deposit |
| Settlement date | Date ownership transfers to the buyer |
| Special conditions | Finance, building inspection, or subject-to-sale clauses |
| Default provisions | Consequences if either party fails to meet their obligations |
| Legal representatives | Solicitor or conveyancer details |
| Supporting documents | Title records, zoning information, reports, and disclosures |
Now you know what should be in the contract, next let’s explore why should you review the contract and what can go wrong if you sign without reviewing it?
Why Reviewing a Contract of Sale Before Signing Is Important
Before you sign a Contract of Sale, take the time to read it to discover any legal, financial and practical dangers before you become legally committed. In WA, after a Contract of Sale is formed and acceptance expressed, generally both parties must agree to change the terms.
Most buyers think that the conventional contract is fair and balanced by nature. But some typical contracts contain language that may not sufficiently protect your interests or represent your particular circumstances.
Common Risks of Signing a Contract Without Review
A professional pre-purchase contract review can help find problems such as:
- Missing or vague finance restrictions which could put your deposit at danger if finance is not approved
- Unrealistic settlement dates that could lead to delay and penalty interest
- Uncertainty or disagreements created by unusual situations that are not well drafted
- Missing building or pest inspection provisions that subject buyers to costly defects
- Unaddressed seller obligations relating to smoke alarms, RCDs, pool fence or other compliance requirements
When a property lawyer analyses the contract of sale, it helps you provide an understanding of your obligations, negotiating adjustments where appropriate. This minimises the chance of costly surprises later in the transaction.
When Should You Get a Contract of Sale Reviewed?
The optimum time to review a sale contract is before you sign it or make a formal offer. After inspecting the property and receiving a copy of the contract, have it evaluated before agreeing to the final terms. This provides an opportunity to address any concerns, special circumstances or revisions before the contract is legally enforceable.
What to Check in Contract of Sale Before Signing in WA
Buyers in WA should check the finance clause, building and pest inspection conditions, settlement date, special conditions, seller compliance obligations and default or termination terms before signing a Contract of Sale. These are the areas most likely to impact on your legal rights, financial obligations and ability to finalise the acquisition.
Let’s get into the detail:
1. Finance Conditions
The finance clause shall provide:
- Deadline for funding approval
- Any lender conditions
- What happens if you are refused finance
If the transaction is to be financed, the clause must be properly drafted. If you don’t have a finance condition or it’s unclear and your loan application fails, you could be held responsible.
2. Building and Pest Inspection Clauses
Is the inspection condition for all defects or just major structural problems? Also take a look at:
- Inspection periods
- Your rights if there are issues
- Whether repairs are required before settlement
A well-drafted clause can provide useful protection in the event of unanticipated complications.
3. Date of Settlement
The settlement date should be realistic and possible depending on your bank approval, moving arrangements and any other transaction needs. Before you sign, check:
- The settlement period as negotiated
- Provisions of penalty interest for late settlement
- Whether extensions can be arranged if necessary
4. Special Conditions
Special conditions are likely to have the most effect on a property purchase and should be looked at carefully.
They may be:
- 48-hour conditions permitting the seller to continue to sell the home
- Clauses that make the purchase contingent on the sale of another property
- Inclusions and exclusions detailing what fixtures, fittings and chattels remain with the property
Disputes at settlement may arise from particular criteria that are unclear or poorly stated.
5. Seller Compliance Responsibilities
Some compliance requirements may be required before settlement.
These may include, depending on the property:
- Smoke alarm guidelines
- RCD safety switch compliance
- Requirements for pool or spa fencing
- Sewer hook-up requirements
These issues should be included in the Contract of Sale and not assumed.
6. Default and Termination Rights
Each buyer should know what happens if they break a contract.
Review:
- What if one of the parties does not fulfil its duties
- Whether the seller can keep the deposit
- The conditions under which the contract may be terminated
Knowing these provisions before signing will help avoid costly conflicts later. Before you buy property, it’s one of the best methods to safeguard your interests to carefully evaluate these six areas.
The Role of Contract Review in the Conveyancing Process
Reviewing a property sale contract is not a solo operation, it is the first step in the conveyancing process.
Once your contract is unconditional your conveyancer or property lawyer does the legal and administrative work to complete the transfer of ownership. This can include title searches, lender coordination, transfer documentation, stamp duty needs and settlement using the PEXA platform.
Having a lawyer evaluate the contract before signing it can catch any concerns early on, which can assist prevent delays, disagreements or extra fees later on in the transaction.
If you want to learn more about how property ownership is legally transferred in Western Australia then check out our guide What Is Conveyancing?
When Should You Get a Lawyer to Review Contract of Sale?
Before you sign it. Once a contract of sale is legally binding, the conditions can normally only be changed with the agreement of all parties concerned.
It’s very crucial to have a property lawyer analyse the deal before signing it if:
- This is your first property purchase
- The contract has complex or uncommon particular conditions
- You’re purchasing a strata, commercial or off-the-plan property
- Any clause is unclear or seems lopsided
- The contract was drawn up by the representative of the other side
Get Your Contract of Sale Reviewed by an Expert Property Lawyer in Perth
Hoe Lawyers have been helping Perth buyers and sellers with contract of sale reviews, conveyancing & property transactions in Western Australia since 2009.
Our expert solicitors are able to:
- Review terms and specific circumstances of the Contract of Sale
- Legal and financial risks to be identified
- Suggest edits prior to signing
- Give straightforward legal advice
- Assistance with conveyancing till completion
Need help?
Book Your Initial Consultation Now
FAQs About Reviewing a Contract of Sale in WA
Does WA have a cooling-off period for property contracts?
No. In Western Australia, most residential property sales don’t automatically include a cooling-off period. The deal of Sale becomes legally binding on acceptance unless the deal has some special condition permitting withdrawal.
Who prepares the contract of sale and purchase?
In most private sales, the contract is prepared by a solicitor, conveyancer or real estate agent on behalf of the seller.
What is the difference between the Offer and Acceptance (O&A) and the Joint Form of General Conditions (JGC)?
The O&A details the terms of sale as agreed including the purchase price, deposit, settlement date and any additional circumstances. The Joint Form of General Conditions prescribes the legal rights and duties of the buyer and the seller. Together they make up the Contract of Sale.
Who will sign the contract of sale first?
The Offer and Acceptance is usually signed initially by the buyer when making an offer to purchase property in WA. Then the seller signs to accept the offer.
Can a purchase and sale contract be modified after signing?
Yes, but only if the parties all agree in writing. So, it is advised that you read the document before signing.
Do I need a lawyer or a conveyancer to review a contract of sale?
You may require a lawyer or conveyancer to check a contract of sale. They will both help in property deals. A property lawyer can provide legal advice, suggest revisions to a contract, identify legal risks and negotiate adjustments if necessary.