Signing a contract & the importance of a pre-approval.

Signing a Contract: What You Need to Know

So, you've found the perfect property and you're ready to sign on the dotted line? Hold up! Before you get carried away, let’s make sure you’re protecting yourself properly.

1. Get Pre-Approved First – Always

House hunting without pre-approval is like shopping without your wallet. If you're serious about buying, get your finance sorted before you start making offers. Pre-approval means your broker has already researched your maximum purchase price and the best lender for your situation, which can shave significant time off the finance process and make for a smoother application experience.

2. Finance & Building/Pest Clauses – Non-Negotiable

When signing a contract, always aim to include:

✅ Finance Clause – If pre-approved, 14 days is usually enough. If not, allow 21 days so your broker has time to assess the market and secure the right lender.

✅ Building & Pest Clause – At least 7 days, but ideally the same length as your finance clause, to ensure you’re not locked in if major defects are found.

These clauses protect your deposit if things go pear-shaped. Without them, you're taking a massive risk.

💡 Exclusive Perks: At Private Finance Brokers, we’ve partnered with trusted building and pest inspectors who offer special perks to our clients. Check out the Trusted Partners section on our website or ask us for a referral.

3. Speak to a Solicitor or Conveyancer First

Your broker is a finance expert, not a legal one. Before signing, get a solicitor or conveyancer to check that your contract has the right protections. These may include:

• A finance clause (so you’re not locked in if the bank says no).

• A building & pest clause (so you can walk away if the place has serious issues).

• A sunset clause (if you’re buying off the plan).

• A subject to sale clause (if you need to sell your current home first).

💡 Exclusive Perks: We’ve negotiated complimentary consultations with experienced legal professionals through our Trusted Partners. Reach out if you’d like an introduction.

4. Settlement Timeframes: 30–90 Days

Most banks’ valuations and loan offers expire after 90 days, so settlement should generally fall between 30 and 90 days.

5. Deposits – Know Your Options

Many buyers don’t realise this, but deposits are flexible. You don’t have to accept whatever the agent suggests. The amount, timing, and structure can often be negotiated to suit your situation.

• Some buyers pay a small holding deposit upfront (e.g. $1,000) and the balance when finance is approved.

• Others agree to a percentage of the purchase price (e.g. 5% or 10%) at unconditional approval.

• Some contracts allow for a minimal deposit at signing, with the rest due at settlement.

Before agreeing to a deposit structure, speak to your solicitor or conveyancer to ensure it aligns with your finance plan.

💡 Important: Loan funds aren’t available until settlement, so any deposit must come from your own funds. If you're using equity from another property, your deposit will be reimbursed at settlement.

6. Auctions: No Finance, No Safety Net

Thinking of bidding at auction? Be warned:

❌ No finance clause – if the bank won’t lend, you still have to pay.

❌ No building & pest clause – if the place is falling apart, it’s still yours.

If you're buying at auction, your best protection is pre-approval and getting a building & pest inspection done before bidding.

7. Final Contract Check Before Sending to Your Broker

Before sending your contract to us, make sure:

✅ All parties have signed

✅ The contract is dated correctly (DD/MM/YYYY format)

✅ Buyer and seller Solicitor's details are completed

Buying a home is a huge decision, so make sure you’re signing a contract that protects you. If you’re unsure, speak to your solicitor and your broker before you commit.

💡 Want to get pre-approved and house-hunting-ready? Book a time to chat today.

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