Buying a property can be complex and often unpredictable. In a fast-moving market, what seems like a missed opportunity may still be a possibility. One common scenario is when a listing is marked “under contract”—but is still advertised for sale.
Let’s explore what properties under contract really means, how it differs from “under offer,” and why you shouldn’t write off a property just yet.
What Does “Under Contract” Mean?
In Australian real estate, “under contract” means that the seller and a buyer have signed a legally binding contract to sell the property. This usually happens after negotiations are complete and both parties agree to the terms.
While this is a major step, the sale is not final at this stage.
Key Facts:
-
The buyer usually pays a deposit, often 10% of the purchase price.
-
The buyer receives a cooling-off period, typically five business days (varies by state), during which they can withdraw without penalty.
-
No cooling-off applies if the sale occurred at auction.
Under Offer vs Under Contract: What’s the Difference?
These two terms are often confused, but they mean very different things.
Under Offer
A property is “under offer” when one or more buyers have made an offer, but the seller has not yet accepted it. The home remains on the market, and:
-
The seller can continue to accept better offers.
-
Other buyers can still inspect and make offers.
Under Contract
Once the seller accepts an offer and contracts are signed, the property moves to “under contract.” This means:
-
Both parties are legally bound to the deal (subject to any conditions).
-
The seller can no longer accept other offers unless the contract falls through.
Can You Buy a Property That’s “Under Contract”?
Yes—sometimes. A contract can fall through for several reasons:
-
The buyer withdraws during the cooling-off period.
-
The buyer fails to get finance or meet other contract conditions.
-
Building or pest inspections reveal issues.
Because of these risks, many sellers keep their property listed and continue taking inquiries. Some agents even run inspections during this stage to secure backup buyers.
If you love a property that’s under contract, register your interest with the agent. You might be next in line if the deal collapses.
Why Are Properties Under Contract Still Listed Online?
Real estate websites often show homes under contract for good reason:
-
The sale isn’t final until settlement.
-
Sellers want to keep options open in case the first deal fails.
-
Agents use the listing to gauge continued interest.
This strategy ensures minimal downtime if the current buyer backs out.
Final Thoughts
A property listed as under contract isn’t off the table. With the right timing and preparation, you could still secure the property if the first buyer withdraws.
💡 Tip: Stay in contact with the agent, inspect the property, and be ready to act quickly if the contract falls through.
