When a property is marked under contract, it means the seller has accepted an offer and both parties have signed the contract of sale. From here, the property is off the market, but the process isn’t complete just yet.
This stage is where finance, inspections, and legal work take place to prepare for a smooth and successful settlement. Understanding what happens while a property is under contract helps both buyers and sellers stay informed and confident.
What happens once a property is under contract
Once contracts are signed, several important steps take place before the sale is finalised.
Cooling-off rights (where applicable)
At the very beginning, some buyers may have a short cooling-off period allowing them to withdraw from the sale. We’ve explained this in detail in our Cooling-Off Period guide (insert internal link), here, we’ll focus on what follows once the contract proceeds.
Finance approval
Most sales are subject to finance, meaning the buyer must obtain formal loan approval within the timeframe specified in the contract, often around 14 to 21 days. Prompt communication with lenders and conveyancers helps keep everything on track.
Building and pest inspections
Buyers usually arrange professional inspections to assess the property’s condition. If significant issues are found, this can lead to further negotiation or, in some cases, a change of plans depending on contract terms.
Conveyancing and legal checks
Conveyancers or solicitors manage the legal process, verifying ownership details, checking encumbrances, and ensuring all documentation is ready for settlement.
(You can read more about this process on SA.GOV.AU.)
Buyer responsibilities
During this period, buyers typically:
- Meet all contract conditions, such as finance and inspections.
- Pay the deposit into the nominated trust account.
- Complete due diligence to ensure the property meets expectations.
Being proactive and keeping in touch with the agent, lender, and conveyancer helps ensure the process runs smoothly.
Seller responsibilities
Sellers must:
- Maintain the property in the same condition as when the contract was signed.
- Allow access for valuers and inspectors when requested.
- Prepare required documentation and ensure inclusions remain in place for settlement.
A cooperative approach between both parties supports a timely and successful completion of the sale.
Potential issues
Sometimes, contracts don’t proceed as planned. Finance may fall through, inspections can raise concerns, or conditions might not be met on time. Staying organised and seeking guidance from qualified professionals can prevent these challenges from derailing the sale.
Why this stage matters
The period between signing and settlement is where the details that finalise a sale are handled. Knowing what to expect, and acting on time, helps reduce stress and ensures both parties reach settlement with confidence.
If you’re planning to buy or sell property and want expert guidance through the contract and settlement process, the AMKAR Real Estate team is here to help. Get in touch today to discuss your next move with our experienced team.
Disclaimer
This information is general in nature and does not constitute legal or financial advice. Buyers and sellers should seek independent professional advice for their individual circumstances.