Buying a property can feel overwhelming—especially if you’re unfamiliar with real estate jargon. Terms like “exchange of contracts,” “conveyancing,” and “settlement” often confuse first-time buyers. One term you’re likely to encounter is **”under offer.” So, what does it really mean?
Definition: What Does “Under Offer” Mean?
When a property is under offer, a buyer has made an offer, and the seller has accepted it. However, the sale isn’t final yet. The agreement depends on certain conditions, such as:
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Finance approval
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Building and pest inspections
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Sale of the buyer’s current property
Until these conditions are met, the contract remains conditional. If all requirements are satisfied, the contract becomes unconditional, and the sale will proceed. At this stage, settlement is scheduled, and the property is close to being sold.
However, even when a property is listed as “under offer”, it’s not officially sold. Deals can still fall through. So, always do your due diligence before assuming the property is off the market.
Common Conditions When a Property Is “Under Offer”
1. Subject to Finance
The buyer needs to secure a loan to complete the purchase. If the lender declines the loan, the sale won’t go ahead.
2. Subject to Sale
The buyer must sell their current property before purchasing a new one. If their sale is delayed, the seller may lose patience and cancel the deal.
3. Subject to Building and Pest Inspections
The buyer hires inspectors to identify issues like water damage, termites, or structural problems. If significant faults are found, the buyer may withdraw the offer.
“Under Offer” vs. “Under Contract” — What’s the Difference?
Many buyers confuse “under offer” with “under contract.” Here’s how they differ:
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Under Offer: The seller has accepted the buyer’s offer, but contracts haven’t been exchanged. The deal still depends on conditions being met.
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Under Contract: Both parties have signed legally binding contracts. The sale is close to completion but may still be in a cooling-off period.
Exchange of Contracts and Cooling-Off Period
Once the conditions are satisfied, the buyer and seller exchange contracts. This marks a critical step in the process. After the exchange, most states in Australia allow a cooling-off period—typically 2 to 5 business days. During this time, the buyer can:
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Conduct final inspections
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Change their mind and cancel the contract (sometimes with a penalty)
Once the cooling-off period ends, the buyer is legally bound to complete the purchase.
Final Thoughts
Understanding the meaning of “under offer” helps buyers avoid false assumptions. A property listed as under offer is not officially sold. Many factors can cause a deal to fall through.
Before making decisions, understand the conditions involved, review the contract terms, and consult a property lawyer or conveyancer if needed. Knowing what each stage means gives you a better chance of securing your ideal home without surprises.
