How Western Australian real estate contracts are formed

Buying property in Western Australia works differently to some other states and territories. Understanding these differences can help you avoid costly mistakes.

The following is general information about the Western Australian contract formation process, which may be unfamiliar if you haven’t purchased property in WA before or recently.


1. Making an offer and signing the contract (offer and acceptance)

In Western Australia, a property can be advertised for sale without a contract of sale being available however well prepared sellers and their agents often do have this 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.

A property sale contract is often referred to in WA as a contract for sale by offer and acceptance, or simply an offer & acceptance (O&A).

It is common for the real estate agent to prepare the contract in the standard REIWA form.

There are very limited seller disclosure requirements (except for the sale of strata titled lots) and so ideally buyers should obtain legal advice on the contract (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 both the buyer and seller have signed the contract, the agreement becomes legally binding.


2. Contract terms and conditions

For private treaty sales, contracts commonly include special conditions that modify the standard terms, such as:

• a finance approval clause,
• a timber and pest inspection clause,
• a working order clause, or
• a sale of prior property clause.

Some of these conditions allow a buyer to terminate the contract if the relevant condition is not satisfied within the agreed timeframe. These conditions, or templated annexures that include these conditions) must be drafted by a legal professional and must be worded carefully to avoid disputes.

By contrast, properties sold at auction are generally sold on unconditional terms, meaning the contract is not subject to finance, inspection or similar conditions.


3. No cooling off period

Unlike some other Australian jurisdictions there is no cooling off period for property purchases in Western Australia.


FAQs About WA real estate contracts

Q1: Is there a cooling off period in WA?
No. WA does not provide a statutory cooling off period for property sales. Once signed by both parties, the contract is binding.

Q2: Can I make my contract subject to finance approval?
Yes. This is one of the most common special conditions. If finance is not approved by the deadline, a buyer may be able to terminate without penalty as long as they comply with their obligations under the contract.

Q3: What happens if finance is declined?
If the finance clause applies and you notify the seller in time with written evidence (ie. a letter of decline from your lender), the contract can usually be terminated without penalty.

Q4: Are inspections mandatory?
No. You must include a timber and pest, or other inspection clause in the contract if you want the right to withdraw based on inspection results. Otherwise the property may be treated as “as is.”

Q5: Who manages the signing process?
Often the real estate agent manages preparation and signing of the O&A, but you can request your legal representative to review it before signing.

Q6: When should I send documents to my legal representative?
As early as possible—ideally before signing—so issues can be identified and addressed.

Mymy Nguyen

Mymy is a legal advisor at lawlab. She has a Bachelor of Laws from the University of Queensland. She specialises in property law including residential and commercial conveyancing. Outside of work she spends her time playing ice hockey and starting new books she forgets to finish and taking her dog to the beach.