Execution and exchange of contracts

Authored by Dr Stephen Pallavicini, Lead Property Lawyer, Marie Boustani, Property Lawyer, Woolworths Group Ltd and Sara Hatcher, Consulting Principal, Keypoint Law (NSW); Lisa Gaddie, Partner, Lander & Rogers (Vic); Luckbir Singh, Partner, MacDonnells Law and Simon LaBlack, Director, LaBlack Lawyers (Qld); Gary Thomas, Special Counsel and Anthony Davis, Director, McWilliams Lawyers (WA); Philip Page, Retired Partner, Mellor Olsson and Constantine Costi, Principal, Costi & Co Commercial Lawyers (SA); Tim Tierney, Principal and Sebastian Thomas-Wilson, Principal, Tierney Law (Tas); Tony Morgan, Partner and Andrew Giles, Special Counsel, HWL Ebsworth, Lyn Bennett, Consultant, Minter Ellison and Leon Loganathan, Managing Partner, Ward Keller (NT); Christine Murray, Managing Partner and Stephanie Lynch, Partner, Meyer Vandenberg Lawyers and Duncan Webber, Partner, Moray & Agnew (ACT). Updated by the LexisNexis Legal Writer team.

Execution of contracts

Contracts for the sale and purchase of land must be in writing, and executed by all parties, although equity may enforce oral contracts under the doctrine of part performance. (s 54A, Conveyancing Act 1919 (NSW); s 126, Instruments Act 1958 (Vic); s 7, Property Law Act 2023 (Qld) (from 1 August 2025); s 59, Property Law Act 1974 (Qld) (prior to 1 August 2025); s 34, Property Law Act 1969 (WA); s 26, Law of Property Act 1936 (SA); s 36, Conveyancing and Law of Property Act 1884 (Tas); s 62, Law of Property Act 2000 (NT); s 201, Civil Law (Property) Act 2006 (ACT))

Parties should ensure that contracts of sale and any associated documents are properly executed. This includes checking that:

• all execution panels or similar have been signed;
• the dates of execution are recorded;
• the names of the parties are identified;
• if the signatory is not the same as the party (eg an agent or attorney signing on behalf of a party), that signatory’s name and position/authority to bind is recorded in the contract; and
• the authority of all signatories is checked to confirm they have the right to bind the party they are signing for.

See Guidance Note: Tips for signing documents. For electronic execution of contracts of sale, see Electronic execution and exchange below.

Exchange

Exchange is a fundamental step in the contract formation process. It involves communicating acceptance of the contract terms with the other parties, usually by providing a signed copy of that contract.