Imagine agreeing to buy a property for $900,000, only to discover later that an important contract condition could add thousands to your expenses. Not exactly the start you’d want.
Property contracts can be tricky. Whether it’s a house, an investment property or commercial premises, there’s usually more to check than the purchase price and settlement date.
According to the Australian Bureau of Statistics, the average residential dwelling price reached **$1,100,400 in June 2026**. With transactions involving such large amounts, even a small oversight deserves attention.
Here are ten property contract mistakes we’d suggest watching out for.
1. Signing Without Reading the Fine Print
The agent tells you another buyer is interested, and suddenly you’re rushing to sign. It’s understandable but have you checked the special conditions, deposit requirements and settlement obligations?
A clause you barely noticed could become a problem later. Before signing, get your conveyancer to review the complete contract, including the attachments. It’s much easier to discuss changes before the agreement becomes binding.
2. Assuming the Special Conditions Are Standard
Two properties with similar prices can have very different contract terms. One seller might require a 30-day settlement. Another may include conditions about repairs, inspections or accepting the property in its current condition.
Don’t assume these details are negotiable after signing. Ask what each condition means in practice. If something doesn’t suit your circumstances, it’s worth discussing amendments before committing.
3. Overlooking Easements and Zoning Restrictions
Say you’re buying a property with plans to build an extension or convert an existing building into office space. Then you discover a drainage easement or zoning restriction that affects your plans.
A property being suitable for one purpose doesn’t mean it’s approved for another. Check the title, easements, covenants and council planning controls. For commercial purchases, confirm whether your intended business use is permitted. You may need additional approvals even if the previous owner operated a similar business.
4. Treating Loan Pre-Approval as Final Approval
A bank’s pre-approval isn’t a promise to lend. The lender might still need to complete a valuation or review your financial position. If the valuation comes in lower than expected, you could have a funding gap.
For example, if you’re buying for $800,000 but the bank values the property at $750,000, your borrowing capacity against that property may be lower than you anticipated.
Discuss a suitable finance condition before signing, where one can be negotiated. Also check the deadline. Missing it can affect your contractual rights.
5. Forgetting About GST
This one’s particularly important for commercial property buyers. Australia’s GST rate is **10%**. If a commercial property is advertised at $1 million plus GST and the full rate applies, that’s another $100,000 to account for.
Not every sale attracts GST. Existing residential property is generally input-taxed, while some commercial transactions qualify for GST-free treatment, such as eligible sales of a going concern. Certain new residential property sales also carry GST withholding obligations.
Check whether GST applies, whether the contract price includes it and how the transaction will be treated. For complex arrangements, get tax advice before signing.
6. Not Checking Existing Tenancies
A commercial property is advertised with annual rental income of $70,000. Sounds promising. But how long is the tenant staying? Are there rent-free periods? Does the tenant have an option to renew? These details can change how attractive the investment really is.
Ask for the lease, rent records and relevant tenancy documents. Check outgoings, security arrangements and any outstanding disputes. For residential investment properties, confirm the tenancy terms and whether vacant possession is required.
7. Skipping Property Inspections and Searches
A warehouse might look structurally sound. A house may have fresh paint and new flooring. Neither tells you what’s happening behind the walls or underneath the building. Depending on the property, you may need building and pest inspections, council searches, drainage information or environmental assessments.
An inspection may cost money upfront, but discovering serious defects after settlement can be far more expensive. Work out which checks you need before the contract becomes unconditional.
8. Assuming Every Property Has a Cooling-Off Period
Cooling-off rights vary across Australia, and commercial transactions often have different rules.
For eligible private residential sales:
- Victoria: Generally three business days
- NSW: Generally five business days for established residential properties
- Queensland: Generally five business days
Exceptions apply, including certain auction purchases. Withdrawing can also cost money. In Victoria, the applicable deduction is generally $100 or 0.2% of the purchase price, whichever is greater. On an $800,000 property, 0.2% comes to $1,600. Check your actual rights before signing. Don’t rely on being able to change your mind later.
9. Underestimating Costs and Settlement Deadlines
The purchase price is one thing. The amount you’ll actually need to complete the transaction is another. Transfer duty, registration fees, searches, conveyancing charges and adjustments for rates or outgoings can add up. Settlement timing matters too.
In Victoria, property settlements are commonly arranged over periods such as 30, 60 or 90 days, depending on what the parties agree to.
Before accepting a date, check whether your lender and other parties can meet it. Delays may lead to penalty interest or additional costs under the contract.
10. Relying on Verbal Agreements
The seller says the air-conditioning system will be repaired. The agent mentions that certain equipment is included. You agree on a few changes over the phone. But none of it appears in the contract. That’s where disagreements can begin.
Get important promises written into the contract or properly documented through an agreed amendment. It might feel unnecessary when everyone is getting along, but written terms make expectations much clearer.
A Contract Check Now Could Save You Trouble Later
There’s quite a bit happening during a property transaction. Finance, inspections, searches, settlement arrangements and paperwork can all demand your attention at once. You don’t have to know every legal term. You do, however, need to understand what you’re signing and what it could mean for you.
At Easy Link Conveyancing, we help buyers and sellers work through property contracts, understand their obligations and manage the paperwork involved in settlement. Whether you’re dealing with residential, commercial or investment property, we’re here to help you understand the process.
About to sign a property contract? Contact Easy Link Conveyancing today. Let’s check the details before you make the commitment.