How South Australian real estate contracts are exchanged – and how the cooling-off period works

Buying property in South Australia works differently to some other states and territories, and understanding this process can save you from costly mistakes.

The following is general information about the South Australian contract exchange process and the cooling off period, which may be unfamiliar if you haven’t purchased property in SA before or recently.


1. Contract preparation and exchange

In South Australia, a property can be listed for sale without a contract or Form 1 vendor statement, however, well prepared sellers and their agents often do have these available when the property is listed for sale so they can transact quickly when an offer is made by private treaty, or made available well before a property is sold at auction.

It is common for the real estate agent to complete a standard form contract of sale for the sale of residential property and for a legal practitioner (lawyer or licenced conveyancer) to prepare a Form 1 vendor statement.

Buyers should obtain legal advice on the listing contract and Form 1 vendor statement (if available) before submitting an offer and the team at lawlab can do a contract review quickly to help you buy securely.

Despite this, it is common for offers to be made and accepted and the contract signing process managed by the real estate agent before a buyer receives any legal advice.

Once the buyer and seller have signed the contract, in what is generally referred to in Australia as a contract exchange, it becomes legally binding.

It is common in South Australia for contracts for properties sold by private treaty to be subject to conditions, such as finance approval and satisfactory building and pest inspections, meaning a buyer can terminate a contract if they are unable to satisfy these conditions.

Contracts for properties sold at auction are on unconditional terms so are not subject to finance approval and building and pest inspections.

2. Cooling-off in South Australia – it starts with the Form 1

The cooling-off period is the limited amount of time where a buyer can rescind a contract for any reason and be refunded their deposit (other than a small cooling off fee up to $100).

One of the biggest differences between South Australia and other states and territories is when the cooling-off period begins. In South Australia the cooling-off period begins on the later of the contract exchange date or receipt of the Form 1 vendor statement and ends 2 clear business days later. The counting of days does not include the contract exchange date/the day on which the Form 1 vendor statement was served.

The Form 1 vendor statement can be given with the contract, or sometimes days or weeks afterwards. It is very important for buyers to obtain legal advice immediately after receiving a Form 1 vendor statement, if they haven’t done so already prior to contract exchange.

The deposit payment date is negotiable but is often only payable the next business day after expiry of the cooling-off period.

No cooling-off applies if the property is bought at auction (or on the same day as an auction) or where the cooling-off period has been waived.

FAQs about SA real estate contracts

Q1: Is there a cooling-off period in South Australia?
Yes, in most private treaty sales. It is generally 2 clear business days and starts the later of when the contract is exchanged or when the buyer is given the Form 1 vendor statement.

Q2: Can I make my contract subject to finance in SA?
Yes. Finance clauses are standard and widely accepted in South Australia (other than for sales by auction).

Q3: Are building and pest inspections mandatory?
No, but they are strongly recommended and commonly included as a contract condition (other than for sales by auction).

Q4: What happens if I rescind a contract during cooling-off?
You will have cancelled the contract and must pay the statutory cooling-off fee of $100 to the seller.

Q5: Who handles the contract signing process?
The real estate agent usually manages signing, but we recommend that you obtain legal advice prior to signing.

Q6: When should I send documents to my legal representative?

Immediately, especially the Form 1, so it can be reviewed before cooling-off expires.

Emma Bridge

Emma is a NSW solicitor at Lawlab who has been with the firm since 2023. She specialises in conveyancing and wills. Emma brings a strong commercial perspective to her practice, informed by a Bachelor of Arts in Law and Criminology, a Diploma in Law from the University of Sydney and a Graduate Diploma in Legal Practice, as well as almost 20 years’ experience in banking, risk, trading and law. Emma is known for her clear, considered advice and her ability to guide clients through complex matters with confidence and care. Outside of work, she enjoys reading and walking her dog.