The sale and
purchase agreement
The sale and purchase agreement is legally binding, so it’s important to read it carefully and get legal advice before you sign anything. You can negotiate the terms and conditions of an agreement, but once you sign it, there’s no going back.
We publish a sale and purchase agreement guide. The salesperson must give you a copy of the guide before you sign a sale and purchase agreement. We recommend reading the guide early in the buying and selling process.
Here is a copy of the Sale & Purchase Agreement.
Know what’s in the sale and purchase agreement
The sale and purchase agreement sets out all the agreed terms and conditions, including these basic clauses:
- the price
- chattels (for example, fixed floor coverings, whiteware or curtains) included in the sale
- the type of title (for example, freehold or leasehold)
- any conditions the buyer or seller wants fulfilled before the contract is agreed
- the date the agreement will become unconditional
- the settlement date
- any deposit the buyer must pay.
Clauses about obligations and conditions
The agreement will also include clauses that set out obligations and conditions that the buyer and/or seller must abide by. These may include what access the buyer can have to inspect the property before settlement and ensuring the property remains insured until the settlement date.
Clauses about default by the buyer or seller
Clauses are also likely to cover what happens if the buyer or seller defaults. This covers compensation costs that must be paid by the buyer or seller if either defaults on the terms of the agreement, for example, by delaying settlement. Your lawyer can explain these clauses to you.