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When you’re buying or selling a house in Melbourne, one of the most important steps is signing the contract of sale. This document locks in the agreement between the buyer and seller, setting out the legal terms of the transaction. But a question that often pops up, especially for those new to the property market, is: who signs the contract first? Is it the buyer or the seller?
Knowing the answer can make the process smoother and help you avoid confusion or holdups. In this blog post, we’ll explore the contract signing process for house sales in Melbourne. We’ll cover both private sales and auctions, explain who signs first, and why it works that way. We’ll also look at why it’s so important to review the contract and the Section 32 Vendor Statement carefully before signing. Plus, we’ll talk about how a conveyancer can help you through it all.
Whether you’re a first-time buyer, an experienced investor, or a seller wanting to get it right, this guide will give you clear, practical insights.
Who Signs First?
In Melbourne, and across much of Australia, the buyer usually signs the contract of sale first. This applies whether you’re dealing with a private sale or an auction, though the steps differ slightly between the two.
Why Does It Happen This Way?
It’s all about how contracts work legally. When the buyer signs, they’re making an offer to buy the property under the terms laid out in the contract. The seller then signs to accept that offer, sealing the deal. This system ensures both sides agree to the same terms.
Let’s break it down by looking at how this plays out in private sales and auctions.
How It Works in Private Sales
In a private sale, the property goes on the market, and buyers can put forward offers. When you, as a buyer, decide to make an offer, you sign a contract of sale. This document spells out the key details of your proposal, such as:
The property’s address and description
Your name and the seller’s name
The price you’re offering
The settlement date (when the property officially changes hands)
Any conditions, like needing finance approval or a building inspection
Once you’ve signed the contract, it’s handed over to the seller. They then have a few options:
Accept your offer by signing the contract—this makes it legally binding, assuming any conditions are met later.
Reject your offer completely if it doesn’t suit them.
Counter your offer by suggesting different terms, which you can then accept, reject, or negotiate further.
If the seller signs to accept your offer, the deal is locked in, and both parties are committed to moving forward, provided any conditions (like getting a loan approved) are fulfilled.
What If Multiple Buyers Are Involved?
This happens a lot in Melbourne’s busy market. Each buyer might submit their own signed contract with their offer, and the seller picks the one they like best by signing it. It’s a bit like a competition, and the seller gets to choose the winner.
Before you sign, it’s wise to get everything lined up. Have your finance pre-approved, conduct inspections, and ensure you’re happy with the terms. Sellers, meanwhile, need to double-check their Section 32 Vendor Statement is accurate to avoid legal trouble.
How It Works at Auctions
Auctions are a big deal in Melbourne, especially when the market’s hot. They’re faster and more rigid than private sales, but the signing order stays the same.
Before the auction, the vendor's conveyancer prepares the contract of sale with all the terms set out. On auction day, buyers bid against each other, and the highest bidder (as long as they meet the reserve price) wins the property.
Right after the hammer falls, the winning bidder must sign the contract. This locks in their offer to buy the property at the price they bid. Then, the seller signs to agree, and the sale is final.
Key Differences at Auctions:
The sale is usually unconditional, meaning once you sign, there’s no backing out without serious consequences.
No cooling-off period, unlike private sales.
Buyers should review the contract before the auction, as they’ll be signing it as-is if they win.
The buyer still signs first, keeping the process consistent with private sales.
Why Reviewing the Contract and Section 32 Matters
Before you put your name on anything, you need to understand exactly what you’re signing. For buyers, this means carefully reviewing the contract of sale and the Section 32 Vendor Statement.
What’s in the Section 32 Vendor Statement?
This must-have document in Victoria contains key information about the property, including:
Title details (any mortgages or legal claims)
Zoning and planning rules
Building permits or approvals
Rates and taxes
Encumbrances (like easements or covenants)
Owners corporation details (if it’s a unit or apartment)
Reviewing these documents properly can save you from nasty surprises. For example, finding out after signing that there’s a covenant stopping you from renovating or that the property has unapproved building work could be a disaster.
How Conveyancers Can Help
Conveyancers are property law experts who guide buyers and sellers through the process to avoid costly mistakes.
For Buyers:
Check over the contract and Section 32
Explain the terms in plain English
Spot potential risks
Suggest contract changes if needed
Handle settlement (title transfers, payments, etc.)
For Sellers:
Prepare the contract and Section 32
Advise on required disclosures
Coordinate with the buyer’s conveyancer
Manage settlement to ensure timely payment
Bringing a conveyancer on board early can prevent headaches before they start.
The Cooling-Off Period in Private Sales
If you’re buying through a private sale, you have a three-business-day cooling-off period in Victoria, allowing you to withdraw after signing. Here’s how it works:
It starts the day after you sign and receive a copy of the contract.
You must notify the seller or their agent in writing.
If you back out, you lose 0.2% of the price, but you get the rest of your deposit back.
It doesn’t apply to auctions or sales within three days before or after an auction.
This cooling-off period is useful if you rethink your budget or spot issues in the Section 32.
What Happens If Someone Doesn’t Sign?
Normally, the buyer signs first, then the seller. But what if one party doesn’t sign?
If the buyer signs but the seller doesn’t, there’s no deal, and the buyer is free to walk away.
If the seller signs first, it’s still not binding until the buyer signs.
Digital contracts don’t change this order—buyer first, seller second.
Conclusion
So, who signs the contract first in a Melbourne house sale? The buyer signs first to make the offer, followed by the seller signing to accept it.
Private sales allow for negotiation and include a cooling-off period.
Auctions are final once signed, with no cooling-off period.
Always review the contract and Section 32 Vendor Statement before signing.
A conveyancer can help ensure a smooth transaction.
Need Expert Help?
Contact Pearson Chambers Conveyancing for expert advice and a free Section 32 contract review. Their team knows Melbourne property inside out and can guide you every step of the way.
Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au