From offer to exchange.
How an offer on a Victorian property becomes a binding contract, step by step, and what to get right before you sign.
Start by asking the agent how they take offers
Every agent runs it a little differently. Most offers move in two stages, and it helps to know which one you're in.
Sense-check your offer
Put the price and terms you have in mind to the agent in writing, by email or text. It shows you're serious and gives you a feel for where the vendor is at.
On its own, an informal offer isn't a signed contract. You can change it or walk away, and cooling-off hasn't started.
Formalise it on the contract
To be a serious contender, the agent will usually ask you to put your offer on the contract and sign it. Most agents fill in your details from your email or text and send it to you to sign electronically. Some ask you to fill in the contract yourself.
A signed offer is what the agent can put in front of the vendor as a legally binding offer.
Cooling-off, if it applies, starts the day you sign. The contract binds you both once the vendor signs and contracts are exchanged.
Neither stage is the wrong way to do it. What matters is that the terms are right before you sign. Not sure you're ready to sign?
Five steps from offer to exchange
Here's what happens once you formalise your offer, and who signs what.
- Step 1
The vendor signs the Section 32
The vendor signs the Vendor Statement (Section 32) first. It sets out the key facts about the property: who owns it, the title, and any restrictions on it.
- Step 2
You confirm you've received it, and your terms go in
You sign the Section 32 to confirm you've received it, before you sign the contract. Then your offer terms go into the contract. The agent either fills them in for you to check, or sends you a blank contract to complete.
Your offer terms
- Your full legal name and address
- Your conveyancer's details
- Price
- Deposit amount and when it's due
- Settlement date
- Any conditions, like finance approval, a building and pest inspection, or changes to the vendor's contract
!Get every term in before you sign. If something is missing and the vendor signs, you can't go back and renegotiate it. - Step 3
You sign and date the contract
- If a cooling-off period applies, it starts from the date you sign.
- You can set a time limit on how long the vendor has to accept.
- You can withdraw your offer at any time until contracts are exchanged.
- Step 4
The vendor considers it and signs
The vendor may have several offers and can weigh them all before deciding. Agents sometimes use one offer to push others higher. That's a normal part of negotiating, and the vendor doesn't have to give you a chance to improve yours.
When they're happy, the vendor signs and dates the contract to accept.
- Step 5
Contracts are exchanged
Once everyone has signed and each side has a signed copy, the contract is binding and you're both committed to its terms. In Victoria, the agent usually handles the exchange.
Let's work out what's holding you back.
Pausing before you sign is normal. It usually comes down to one of a few things, and most of them can be sorted with the right terms. Here's what we hear most.
“I'm worried about being locked in.”
A signed offer isn't a done deal. You can withdraw it until contracts are exchanged, and a cooling-off period may apply. We'll tell you exactly where you stand.
“My finance isn't locked in yet.”
A finance condition can protect you, even if you have pre-approval. We'll help you word it so it covers the amount you're borrowing.
“I haven't had a building inspection.”
You can book one before you offer, or make your offer subject to a building and pest inspection. We can point you to an independent inspector.
“The agent says the vendor won't take conditions.”
We'll talk you through what you'd be giving up, so the decision is yours and not the agent's.
“I'm not sure about the contract.”
Send it to us. A lawyer will review it for free and tell you what's worth asking for before you sign.
“The deposit or settlement date doesn't suit me.”
Both can be negotiated. Put the terms you need in your offer, and we'll check they say what you mean.
Talk to us before you sign.
Call or text us with what's on your mind. We'll work through it with you and check your offer before it goes to the agent. It's free.
Important to remember
- You can withdraw your offer until contracts are exchanged.
- Cooling-off, if it applies, starts when you sign.Not when the vendor accepts.
- It's only binding once both sides have signed and contracts are exchanged.
- Every term you've agreed must be in the contract before you sign.
Don't rush the paperwork to beat the clock. Read every detail before you sign, and if a term or condition doesn't make sense, ask us first.
Know the contract before you make your offer
Send us the Contract of Sale and Section 32. A property lawyer will review it for free and flag what matters, in plain English.
Back within 4 business hours where possible. No obligation, and if you buy with us, nothing to pay until settlement.
- 1Send us the contract and a few details about the property.
- 2Get your review with a clear plan for your next steps.
- 3Talk it through with us, including your offer.
- 4We handle the conveyancing through to settlement.