exchange of contracts (agreements) - standard contract

Under the land conveyancing system you are not bound by an agreement over the sale of real estate until the other party holds your signature on a written agreement (contract). Similarly, you cannot enforce the agreement until you hold the signed agreement of the other party. Until then, either party can decline to proceed at any time. However, the law in NSW is different. The agreement is prepared by the seller's solicitor and submitted to the buyer's solicitor. It is usually on a form known as the standard contract.

It is either an agreement for sale of crown leasehold or agreement for sale of unit title depending on the subject matter. It is also known as the “contract” but strictly speaking it is not a contract until exchange.

The seller signs one copy of the agreement and the buyer another and agreements are made binding by being exchanged and dated and the deposit paid. Exchange of agreements or exchange means there is a binding agreement in force between the parties.


See legal description and identification