So you have found a buyer for your property — congratulations. But until the contract is formally exchanged and signed, that buyer can still walk away, change their mind, or buy something else.
Many sellers believe a verbal agreement or handshake means the deal is done, but in Australian property law, that is not the case. A sale only becomes legally binding once both parties have signed the contract and the exchange has taken place.
If you want to make sure your buyer is genuinely committed, you need to understand how to legally “lock them in.” In this guide, we explain what that means, how it works in practice, and the legal tools your conveyancer uses to protect you.
Why You Cannot Rely on Verbal Agreements
In Australia, property sales must be in writing to be enforceable. This means that until the buyer and seller both sign the contract of sale and the exchange is complete, neither party is legally bound to proceed.
An enthusiastic buyer can say all the right things, make an offer, and even pay a holding deposit, but none of this guarantees they will go through with the purchase. Only a properly executed contract creates a legal commitment.
That is why engaging a conveyancing solicitor early is crucial. Your lawyer will prepare a contract that is accurate, compliant, and enforceable so that once signed, the buyer cannot simply change their mind.
Step 1: Have a Legally Compliant Contract Ready
Before you even list your property, you must have a contract of sale prepared. This is a legal requirement in most states, and it speeds up the process once a buyer makes an offer.
Your conveyancing solicitor will draft the contract, which includes:
- A title search confirming you are the registered owner
- Zoning and planning certificates
- Copies of drainage, sewer, and easement diagrams
- Details of inclusions and exclusions
- Any required disclosures under state or territory law
Having this contract ready means that when a buyer expresses serious interest, you can move quickly to exchange. The longer you delay, the more opportunity they have to change their mind or look elsewhere.
Step 2: Exchange Contracts — The Legal Commitment Point
Once the buyer and seller have agreed on price and terms, the next critical step is exchange of contracts. This is the point when both parties sign identical copies of the contract and swap them, usually through their solicitors or conveyancers.
From that moment, the agreement becomes legally binding. The buyer must pay the deposit, and the seller is committed to completing the sale on the agreed terms.
How exchange works
- Your conveyancer confirms the final version of the contract and handles the exchange process.
- The buyer pays the deposit (typically 5 or 10 percent of the purchase price).
- Both parties receive a dated copy of the fully executed contract.
After exchange, neither party can unilaterally withdraw without legal consequences — unless a cooling-off period applies, which we cover next.
Step 3: Understand the Cooling-Off Period and How to Limit It
In most states and territories, buyers have a cooling-off period after signing the contract. During this time, they can withdraw for any reason, usually by forfeiting a small portion of the deposit (often 0.25 percent).
The length of the cooling-off period varies:
- ACT and NSW: five business days
- Victoria: three business days
- Queensland: five business days
However, there are important exceptions. Auction purchases have no cooling-off period. Once the hammer falls, the buyer is locked in.
If your buyer is making a pre-auction offer or you want to remove the cooling-off right altogether, a solicitor can prepare a certificate waiving it:
- In the ACT, this is a section 17 certificate.
- In NSW, it is a section 66W certificate.
Your property lawyer can advise whether this is appropriate and coordinate the process with the buyer’s solicitor. It is a powerful way to secure the sale early and prevent buyer withdrawal.
Step 4: Collect and Secure the Deposit
The deposit is another important mechanism for locking in the buyer. It shows their commitment and provides some protection if they default.
Usually, the deposit is held in trust by the real estate agent or solicitor until settlement. If the buyer withdraws during the cooling-off period, you may retain a small percentage. If they default after the contract becomes unconditional, you may be entitled to the full deposit.
Make sure your contract clearly states the deposit amount, payment method, and what happens if the buyer fails to complete. Your conveyancing solicitor will ensure these terms are watertight.
Step 5: Make the Contract Unconditional
A buyer’s contract can include conditions that allow them to withdraw if certain things do not happen — for example, if their finance is not approved or if a building and pest inspection reveals issues.
These are known as conditional contracts, and they give the buyer flexibility. While common, they can be used to stall or escape a purchase.
As a seller, your lawyer can negotiate shorter time frames or request unconditional terms where appropriate, especially if:
- The buyer already has finance approval
- The property has recently passed inspections
- The sale is competitive and there are multiple interested parties
Once the conditions are satisfied or removed, the contract becomes unconditional and binding. The buyer must settle on the agreed date.
Step 6: Protect Against Buyer Defaults
Even with an unconditional contract, a buyer could still breach their obligations — for example, by failing to settle on time.
Your lawyer can include clauses that specify:
- Penalty interest payable by the buyer for late settlement
- Retention of the deposit if they default
- Your right to resell the property and claim any shortfall
These terms encourage compliance and give you legal recourse if the buyer fails to complete the sale.
Step 7: Be Ready to Move Quickly
Timing is everything. The faster you and your solicitor can respond, the less opportunity your buyer has to walk away.
When you have:
- A completed contract ready before listing
- All certificates and searches in order
- A conveyancer handling communications with the buyer’s representative
you minimise delays and keep the process moving forward. A slow or incomplete contract is one of the most common reasons buyers lose confidence or pull out before exchange.
Velocity Conveyancing streamlines this entire process with efficient systems, experienced staff, and clear communication — ensuring your buyer stays committed.
Step 8: Stay Professional but Firm
While it is important to keep your buyer comfortable and cooperative, your lawyer’s role is to protect your interests, not to keep the buyer happy at all costs.
You can remain friendly and flexible on practical matters, but do not agree to major changes or early possession without legal advice. Once your lawyer confirms everything is in order, proceed to exchange promptly.
Common Mistakes Sellers Make
Here are some common errors that can cost sellers time and money:
- Listing the property before preparing a compliant contract.
- Accepting verbal offers without confirming the buyer’s finance status.
- Allowing the buyer too much time before exchange.
- Failing to collect the correct deposit or document it properly.
- Assuming a deal is final before contracts are signed and dated.
Avoiding these mistakes comes down to preparation and having the right legal support from the start.
Why Sellers Trust Velocity Conveyancing
Velocity Conveyancing has specialised in residential conveyancing since 1968, helping thousands of Australians secure their sales quickly, legally, and with total transparency.
When you work with Velocity, you can expect:
- Accurate, compliant contracts prepared before you list
- Fast response times to lock buyers in as soon as possible
- Clear communication between agents, buyers, and solicitors
- Fixed fees and no hidden costs, with guaranteed price transparency
- Expert legal guidance across ACT, NSW, and Victoria
Our team ensures that once a buyer commits, the law is on your side to make sure the sale goes through.
Lock In Your Buyer With Confidence
The difference between a “maybe” and a legally binding sale often comes down to timing, paperwork, and professional guidance.
Before you list your property or accept an offer, speak with a qualified property lawyer who can prepare your contract correctly and help you lock in your buyer to the full extent of the law.
Get a free quote today or call 1300 483 562 to speak with one of Velocity Conveyancing’s experienced solicitors.
Your property deserves a secure, smooth, and stress-free sale and we will make sure it happens.
This article provides general information only and shouldn't be considered specific legal advice. Every property situation is unique, and we recommend consulting with qualified solicitors for personalized guidance. Contact our team for legal advice.
