Aussie homebuyers are being urged to scrutinise their property contracts more closely, with experts warning that many sales agreements contain “top-tier red flags” capable of derailing purchases or costing buyers thousands.
The warning comes amid a rise in complex clauses, inconsistent disclosure requirements, and tightened vendor conditions across multiple states and territories.
Check the contract carefully Image: iStock
Ian Perkins, founder of digital contract-review platform BuySecure, said the shift was unmistakable – and increasingly dangerous for everyday buyers.
“We’re seeing contracts with errors, omissions or one-sided clauses that buyers simply don’t spot,” Perkins said.
“A wrong name, a missing disclosure or a vague special condition might look harmless, but it can completely change the deal.”
Perkins said that buyers often assumed that contracts were standard when they are not.
“Every jurisdiction has different rules, and every seller has different motivations,” he said.
“A single clause can shift thousands of dollars of risk onto the buyer.”
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Ian Perkins of BuySecure
Perkins said the complexity of modern real estate contracts meant even small oversights can have major consequences.
“We’ve seen contracts where the smallest oversight, such as a missing certificate, an unclear settlement clause, or a GST mistake, can derail finance or delay settlement,” he said.
“Buyers are being pushed to sign quickly, but the fine print is getting more complex, which can be a dangerous combination.
“But technology gives buyers a fighting chance by identifying these issues instantly and explaining them in plain English so buyers can make an informed decision on whether to proceed with the purchase or not.”
Ray White auctioneer Haesley Cush took this photo of just one Seller Disclosure statement in Queensland
Perkins said that buyers must never sign a contract that they don’t fully understand.
“A property contract is often the most expensive document most Australians will ever sign,” he said.
“If you wouldn’t buy a car without checking under the bonnet, then don’t buy a home without checking the contract.”
BuySecure contract reviews or conversations with a conveyancer will help to identify the potential red flags quickly, Perkins said.
The warning comes after My Verve Property buyesr agent Lisa Evans said that buyers were making life-latering mistakes in the heat of the moment just to secure a home in the heated property market.
Lisa Evans, My Verve Property buyer’s agent. Image supplied.
Dubbed the FOMO (fear of missing out) tax, Evans said that the most dangerous trend she was seeing that was on the rise was the “reckless unconditional offer”.
“To compete, buyers are waiving building and pest inspections or finance clauses after just a 15-minute walk-through,” she said.
“They are betting over a million dollars on a whim, treating the largest purchase of their lives with less due diligence than they would use to buy a used car.
“When a buyer sees 30 people at an open home, they immediately assume the property is worth $50,000 more than it actually is.
“This paranoia leads to hasty, unconditional offers without any ‘forensic’ homework. “Essentially, they are paying a ‘FOMO Tax’ just to stop the dreaded weekend crawl.”
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Top 10 Contract Red Flags
1. Incorrect identification of the parties or property: Errors in names, title references, lot/plan numbers or missing easements can delay settlement, complicate finance, or even invalidate the contract.
2. Unclear price, deposit or payment terms: Ambiguity around deposit timing, release conditions or access to funds can expose buyers to financial risk.
3. Cooling-off limitations or exclusions: Cooling-off rights vary widely across Australia and can be shortened, waived or excluded entirely. Buyers often assume they can “change their mind” when they legally cannot.
4. Insufficient or inaccurate seller disclosure: Disclosure obligations differ by jurisdiction. Missing or incorrect certificates, reports or statements can mask issues that later become the buyer’s problem.
5. Missing or weak contract conditions: Finance, building and pest, or due-diligence clauses are not standard everywhere. In some states, buyers must negotiate these before signing or during cooling-off – or risk being locked into an unconditional contract.
6. Unclear settlement dates and adjustments: Settlement periods vary and may be tied to other events. Poorly drafted adjustment clauses can shift unexpected costs for rates, water, strata or even land tax onto the buyer.
7. Unclear risk and insurance obligations: Risk can shift between sellers and buyers at different stages depending on jurisdiction and special conditions. In some states, it passes at contract exchange, requiring buyers to arrange immediate building insurance to avoid exposure if damage occurs before settlement.
8. Risky or one-sided special conditions: Special conditions override standard terms and can remove warranties, restrict due diligence, or shift all risk to the buyer. A single clause can fundamentally alter the contract.
9. GST uncertainty: Whether GST applies and whether the price includes it, can materially affect the final cost. Errors here, including whether GST must be withheld, can lead to unexpected liabilities and outcomes.
10. Vacant possession and tenancy issues: Contracts must clearly state whether the property is sold vacant or with tenants. Overlooking lease terms, expiry dates or bond details can delay settlement or prevent intended use.
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