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Once a property is described as under contract, it means a buyer and seller have signed a contract of sale, though it is worth understanding what still needs to happen before that contract is final and unconditional.
Under offer vs under contract
The two phrases are often used loosely in listings, but they describe different stages. A property is usually called under offer when a seller has accepted an offer in principle and the contract has not yet been signed by both parties — at that stage there is no binding contract. Under contract means both the buyer and the seller have signed, so a binding contract exists, even though it may still be conditional. Because agents and listing portals use these labels inconsistently, the only reliable way to know the status of a specific property is to ask what has actually been signed.
What actually makes a contract binding
A property becomes subject to a binding contract once both the buyer and the seller have signed. Before that point, verbal agreements or an accepted offer are not the same as a signed, binding contract.
The cooling-off period
Queensland has a statutory cooling-off period of five business days that applies to residential property contracts, for buyers only. It starts when the buyer receives a copy of the contract signed by both parties, and if that happens on a weekend or public holiday, the period starts the next business day. It runs until 5pm on the fifth business day.
To use the cooling-off period, the buyer must give written, signed notice to the seller or their agent by the deadline. If a buyer terminates within this period, the seller can deduct a penalty of up to 0.25 percent of the purchase price from the deposit, refunding the balance within 14 days. A buyer can also waive or shorten the cooling-off period in writing if they choose to.
The cooling-off period does not apply to properties bought at auction, and it also does not apply to a private treaty contract signed within two business days of an unsuccessful auction where the buyer was a registered bidder at that auction.
What happens after signing
After the contract is signed, it typically remains conditional until things like finance approval or a satisfactory building and pest inspection are met, at which point it becomes unconditional. Settlement, where the balance of the price is paid and the title transfers, is the final stage. Settlement is also when Queensland transfer duty falls due for most buyers, and the title search ordered during the contract period is what confirms exactly what is being transferred.
What to verify before you act
This is a general description of the process rather than advice on a specific contract. The exact cooling-off arrangements, exceptions and any conditions in a particular contract should be confirmed directly, ideally with the help of a conveyancer or solicitor, since the consequences of missing a deadline can be significant. If you are not sure which to engage, see our plain guide to choosing between a conveyancer and a solicitor for a Queensland purchase.
Sources
- Queensland Government, Cooling-off period and Contract of sale pages, qld.gov.au
This article is general information only and is not legal advice. Contract rules can change and can depend on individual circumstances. Always confirm current requirements with a qualified conveyancer or solicitor before relying on any timeframe.
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