Property due diligence
Private-sale offers and conditions
How a private-sale offer becomes a binding contract, what conditions actually protect you, and why GST needs a specific check rather than a general assumption.
- A private-sale offer is made by signing the contract of sale itself, with a recommended expiry date so the seller knows the deadline for accepting it.
- Conditions — finance naming the lender, sale of an existing property, a satisfactory building or pest inspection — are the real protective advantage of this sale method.
- Only a written, signed offer can lead to a binding contract; a verbal agreement can't.
- GST treatment depends on the specific property, seller and contract — confirm it for your actual contract rather than assuming the general new-vs-established rule applies.
How a private-sale offer is actually made
In an agent-managed private sale, a buyer makes an offer by signing the contract of sale itself — not a separate offer form — which the agent then takes to the seller unless specifically instructed not to. Consumer Affairs Victoria recommends writing an expiry date into the contract, so the buyer knows exactly by when the seller must have accepted it (Consumer Affairs Victoria, verified 30 Jul 2026).
What actually goes into the contract
A private-sale contract of sale should state the property and party details, the offered price, the deposit amount, the balance owing at settlement, the agreed settlement period, any conditions, and the items included in the sale — an item left off the contract can be genuinely hard to claim ownership of at settlement (Consumer Affairs Victoria, verified 30 Jul 2026). Negotiation can involve verbal offers, but only a written offer can lead to a binding contract; more than one buyer may be making an offer at once, and settlement periods commonly run 30–90 days (Consumer Affairs Victoria, verified 30 Jul 2026).
Conditions genuinely protect you here
A private-sale buyer can negotiate conditions — loan approval naming the specific lender ("subject to finance"), the sale of an existing property, or a satisfactory building or pest inspection — in a way an auction buyer generally cannot (Consumer Affairs Victoria, verified 30 Jul 2026). This is the sale method's real advantage: use it. Removing a condition is a decision to shift risk onto yourself, not a formality.
The deposit isn't released early by default
A private-sale deposit is held in trust by the agent or the parties' conveyancer or legal practitioner until settlement. It can only be released to the seller before settlement if the contract is unconditional, the buyer is satisfied with the proof-of-debts information provided, and not until 28 days after the contract was signed (Consumer Affairs Victoria, verified 30 Jul 2026).
GST needs its own check, not an assumption
As a general rule of thumb, GST applies to the purchase of new homes but not established homes, unless the seller is GST-registered, and the contract must state clearly whether the price includes or excludes GST (Consumer Affairs Victoria, verified 30 Jul 2026). In practice, GST treatment depends on the specific property, the seller's circumstances and the actual contract terms — established residential premises are generally treated differently from new residential premises or potential residential land under the relevant tax rules. Don't assume either way: confirm the GST position for your specific contract with your conveyancer and, where relevant, a tax adviser before you sign.
Worked example
Two buyers make private offers on the same property in the same week. Buyer A offers a higher price but makes it subject to finance and a building inspection. Buyer B offers slightly less but removes both conditions. The seller can weigh certainty against price — and either buyer's outcome depends on terms actually written into the signed contract, not on whichever offer sounded strongest verbally.
Practical checklist
Before you submit a private-sale offer
- Have the draft contract reviewed by a conveyancer before signing, not after
- Decide which conditions genuinely protect you, and negotiate them in writing
- Confirm the settlement period and every included/excluded item is listed in the contract
- Write an expiry date into the offer so the timeline is clear to the seller
- Confirm the GST treatment stated in the contract with your conveyancer
Questions for a professional
- Which conditions should I be negotiating for my specific circumstances?
- Is the GST treatment in this contract correct for this specific property?
- What happens to my deposit if the contract falls through before settlement?
Official resources
Sources and methodology
- Buying property by private sale — Consumer Affairs Victoria (retrieved 30 Jul 2026)
Figures on this page are drawn from Delora's local knowledge graph, refreshed from these primary sources and checked for changes on a regular schedule. If a figure here looks out of date, the official source above is always the authority — please let us know.