Who prepares the sale and purchase agreement? Learn who drafts it, why it matters, and how buyers and sellers protect themselves during a property transaction.
When you buy or sell a property, one document controls almost everything: the sale and purchase agreement.
It sets the rules for the deal.
It spells out the price, timelines, deposit, conditions, and what happens if something goes wrong.
Now, you may want to know who prepares the sale and purchase agreement.
The answer is not always the same. It depends on the country, the property market, and the dealis structure.
In many cases, lawyers prepare the agreement. In other situations, a real estate agent may start with a standard contract template.
Buyers and sellers may also work with professionals who handle inspections and paperwork before listing a home, such as those offering pre-sale property services.
Understanding who prepares the agreement, and why it matters, helps you avoid costly mistakes.
What Is a Sale and Purchase Agreement?
A sale and purchase agreement (SPA) is the legal contract between a buyer and a seller.
It confirms that both sides agree to the property sale and outlines the terms.
Typical sections inside the agreement include:
- Purchase price
- Deposit amount
- Settlement date
- Conditions (finance, inspections, etc.)
- Items included in the sale
- Legal obligations of each party
Once both parties sign it, the agreement becomes legally binding.
According to the Australian Securities & Investments Commission, legally binding contracts require clear terms, agreement by both parties, and consideration (something of value exchanged).
A property contract checks all those boxes.
Who Usually Prepares the Sale and Purchase Agreement?
The person who prepares the agreement depends on the transaction.
Here are the most common professionals involved.
1. A Property Lawyer or Conveyancer
In most property transactions, a lawyer or conveyancer prepares the sale and purchase agreement.
They ensure the document follows property laws and protects their client’s interests.
Their responsibilities often include:
- Drafting the contract
- Checking the legal title
- Confirming zoning and land details
- Adding conditions that protect the buyer or seller
- Reviewing amendments before signing
A conveyancer focuses specifically on property transfers. They handle the legal process of transferring ownership from one party to another.
According to NSW Fair Trading, conveyancers manage legal documents, settlement procedures, and property title transfers.
This is why many buyers hire their own legal professional to review the agreement before signing.
2. The Seller’s Lawyer Often Drafts the First Version
In many property deals, the seller’s lawyer prepares the first draft of the agreement.
Why?
Because the seller owns the property and provides key details such as:
- Title information
- Land boundaries
- Fixtures included in the sale
- Disclosure statements
Once the draft is ready, the buyer’s lawyer reviews it.
They may request changes or add conditions, such as:
- Finance approval
- Building inspection
- Pest inspection
- Sale of the buyer’s current home
This back-and-forth ensures both sides are protected before signing.
3. Real Estate Agents May Provide a Standard Contract
In some markets, real estate agents prepare the sale and purchase agreement using standard templates.
These templates are often approved by industry associations.
For example, the Real Estate Institute of Australia provides contract templates used by agents across the country.
However, there is an important point here:
Agents usually cannot give legal advice.
They can fill out the contract details, but they cannot interpret legal clauses the way a lawyer can.
Because of this, many buyers still ask their lawyer to review the agreement before signing.
Why the Person Who Drafts the Agreement Matters
The agreement controls the entire transaction.
If something is missing or unclear, it can lead to serious problems.
For example:
- A missing condition could force a buyer to complete the purchase even if financing falls through.
- A poorly written clause may create disputes about repairs or included items.
- Incorrect title details could delay settlement.
Property transactions often involve large sums of money, so even small errors can become expensive.
That is why experienced professionals prepare or review the contract.
Key Sections Inside a Sale and Purchase Agreement
If you look inside a typical property agreement, you will see several critical parts.
Understanding these sections helps you know what to watch for.
1. Property Details
This section describes the property being sold.
It usually includes:
- Address
- Legal title number
- Land size
- Boundaries
- Property type
Accuracy is essential here.
Errors in property descriptions can cause legal complications later.
2. Purchase Price
This section confirms the agreed sale price.
It also explains:
- Deposit amount
- When the deposit must be paid
- Where the deposit is held (usually a trust account)
3. Conditions of the Sale
Conditions protect both parties.
Common conditions include:
- Finance approval
- Building inspection
- Pest inspection
- Title review
- Sale of buyer’s current property
If these conditions are not met, the buyer may be able to withdraw from the contract.
4. Settlement Date
Settlement is when ownership officially transfers to the buyer.
This section states:
- Settlement date
- Payment process
- Transfer of keys and ownership
According to the Australian Government’s Moneysmart, settlement typically occurs 30–90 days after signing the contract, depending on the agreement.
5. Included Fixtures and Chattels
Fixtures and chattels refer to items included with the property.
Examples may include:
- Appliances
- Curtains
- Lighting fixtures
- Built-in cabinets
- Garden sheds
Listing these clearly prevents disputes later.
Can Buyers Prepare the Sale and Purchase Agreement?
Technically, a buyer can prepare the agreement if they have a lawyer or legal professional.
However, buyers usually do not draft the initial contract.
Instead, the buyer’s legal representative typically:
- Reviews the seller’s draft
- Adds protective clauses
- Negotiates contract changes
This ensures the buyer’s rights are protected.
What Happens After the Agreement Is Signed?
Once both parties sign the agreement, several steps follow.
These usually include:
1. The Deposit Is Paid
The buyer pays the agreed deposit into a trust account.
2. Conditions Are Completed
The buyer may need to:
- Secure financing
- Complete inspections
- Review legal documents
3. Legal Checks Continue
Lawyers or conveyancers confirm:
- Property title
- Outstanding debts
- Easements or restrictions
4. Settlement Occurs
On settlement day:
- Funds transfer to the seller
- Ownership transfers to the buyer
- Keys are handed over
Common Mistakes People Make With Property Contracts
Many buyers and sellers rush the paperwork.
That often leads to problems.
Here are mistakes you should avoid.
1. Signing Without Legal Review
Even if the contract looks simple, legal wording can hide risks.
Having a lawyer review the agreement protects you.
2. Missing Important Conditions
Without conditions, buyers may lose their deposit if something goes wrong.
Common protective clauses include:
- Finance approval
- Building inspection
- Title review
3. Not Understanding Special Clauses
Some agreements contain special conditions written specifically for that deal.
These clauses may change:
- payment terms
- timelines
- responsibilities for repairs
Always review these carefully.
Why Early Preparation Makes the Process Easier
Property transactions often move quickly.
When paperwork is prepared early, everything becomes smoother.
For example, sellers who organize inspections, compliance checks, and documentation before listing their property often experience fewer delays during negotiations.
This preparation helps buyers review the agreement with more confidence.
When You Should Speak to a Lawyer
You should consult a lawyer or conveyancer if:
- You are buying property for the first time
- The contract includes unusual conditions
- The property has zoning or title issues
- You are unsure about legal language in the agreement
Legal guidance is especially important when dealing with high-value transactions.
Conclusion
So, who prepares the sale and purchase agreement?
In most property transactions:
- The seller’s lawyer or conveyancer prepares the first draft
- The buyer’s lawyer reviews and negotiates changes
- In some cases, real estate agents provide standard contract templates
No matter who drafts the document, legal review is essential.
The sale and purchase agreement controls the entire property deal. It sets the price, conditions, timeline, and responsibilities for both parties.
Taking the time to ensure the contract is properly prepared protects your investment and helps the transaction move forward without costly surprises.
