The Queensland Residential Property Contract Explained: What Sellers Need to Know
Most Queensland property sales use the same standard contract form. Understanding how it works, what each section means, and what to check before you sign can save you significant stress later.
When a buyer makes an offer on your property in Queensland, the legal mechanism that captures that offer is a contract of sale. For most residential sales, this is the REIQ/ADL standard form, prepared jointly by the Real Estate Institute of Queensland and the Australian Institute of Conveyancers (Queensland Division). It is not the only form in use, but it is the most common, and your agent will almost certainly present it to you when an offer arrives.
Understanding what the contract contains, and what each section is actually committing you to, is worth the twenty minutes it takes before you sign anything. This guide explains the structure of the standard Queensland residential contract in plain language, focused on what sellers need to understand.
The two parts of a Queensland property contract
The standard form has two distinct sections. The first is the reference schedule, which captures the specific deal terms negotiated between you and the buyer: purchase price, deposit amount, settlement date, the names and details of both parties, what is included in the sale, and any conditions that apply. This is the section that changes with every transaction.
The second part is the general conditions, a fixed set of legal terms that apply to every sale using this form. The general conditions govern what happens if the buyer does not pay the deposit on time, what either party can do if the other defaults, how risk of damage to the property is allocated between contract and settlement, what inclusions means by default, and many other standard legal matters. Your solicitor will be familiar with these clauses and can explain any that are relevant to your specific situation.
Key dates every seller must understand
The reference schedule contains several dates that drive the timeline of your sale. Each has consequences if it is missed, so it is important to understand what each one means before you sign.
The contract date is the date both parties have signed. This is when the contract becomes binding, subject to any conditions. From this date, all other deadlines are calculated.
The finance date is the deadline by which the buyer must confirm that their lender has approved their loan. If the buyer's finance is not approved by this date, and they have a finance condition in the contract, they can notify you that the contract has failed and walk away without penalty. The deposit is returned to them. As a seller, you should understand that a contract with a finance condition is not a sold property until finance is confirmed.
The inspection date is the deadline for the buyer to complete any building and pest inspections and decide whether to proceed. If the inspection reveals defects the buyer finds unacceptable, they can terminate the contract under this condition.
The settlement date is when ownership of the property transfers to the buyer, the balance of the purchase price is paid to you (after your mortgage is discharged, if applicable), and you hand over possession. This is the date that matters most to most sellers.
What conditions in a contract actually mean
A conditional contract is one where the buyer's obligation to complete the purchase depends on one or more events occurring. The most common conditions in Queensland residential contracts are finance approval, satisfactory building and pest inspection, and occasionally due diligence (for investment properties or unusual situations).
While a condition is outstanding, the property is not sold. The buyer retains the right to exit the contract if the condition is not satisfied. As a seller, this means the property is not legally committed until every condition has been either satisfied or waived in writing. You cannot accept another offer during this period without terminating the first contract, which has legal and financial consequences.
Going unconditional is the moment all conditions have been satisfied or waived by the buyer. Once the contract is unconditional, both parties are fully committed. The buyer cannot walk away without forfeiting their deposit in most circumstances, and you cannot accept another buyer regardless of the price offered. This is the point at which most sellers breathe a genuine sigh of relief.
Special conditions: what they are and why they matter
In addition to the standard general conditions, buyers (and occasionally sellers) can add special conditions to the contract. These are terms that modify or add to the standard form. They might be drafted by the buyer's solicitor, added by your solicitor at your direction, or negotiated directly between the agents during offer discussions.
Common special conditions in Brisbane residential contracts include a subject-to-sale clause (the buyer's purchase is conditional on them selling their existing property first), an extended settlement period (to allow the buyer more time to finalise finance or make alternative arrangements), early access clauses (giving the buyer the right to access the property before settlement, sometimes for renovations or measurement), and specific inclusions or exclusions beyond what the standard form covers by default.
Special conditions can significantly affect your position as a seller. A subject-to-sale condition, for example, introduces a second layer of uncertainty: the contract is conditional not just on the buyer's finance but on an event (their own sale) that is entirely outside your control. Always have your solicitor review any special conditions before you sign.
What sellers should check before signing
When your agent presents a signed offer for your consideration, take the time to confirm the following before you countersign or accept:
Verify that the purchase price is exactly what was agreed. Check the deposit amount and the date by which the deposit must be paid. Confirm the settlement date is workable for your circumstances, including any property you may be purchasing simultaneously. Review the inclusions and exclusions list carefully: if you intend to take the garden shed, the outdoor pizza oven, or the pool cleaner, these should be explicitly excluded. If an item is fixed to the property, it is included by default unless excluded in writing.
Read any special conditions closely, and ask your solicitor to explain any clause you do not understand before you sign. Once both parties have signed, the contract is binding, and unwinding it is legally complicated and financially costly.
The most important thing a seller can do with a contract is engage a solicitor before execution, not after. Solicitors can identify issues with proposed conditions, advise on the implications of specific clauses, and protect your interests in ways that your agent, however experienced, is not qualified to do.
Have questions about selling in Brisbane? Daniel can walk you through what to expect at every stage of the sale process, from listing through to settlement. No pressure, just straight answers. Get in touch.