Contract Preparation & Deposit When Selling Without Agent Queensland
Contract Preparation & Deposit Handling: Your Essential Guide When Selling Privately
When selling privately in Queensland, understanding how to properly handle contracts and deposits is crucial. While you're saving thousands by avoiding agent commission, you absolutely need professional legal support for these critical steps. Here's everything you need to know.
Why You Need a Conveyancer (Even When Selling Privately)
The Bottom Line: You cannot legally hold the buyer's deposit yourself, and attempting to prepare your own contract is risky and potentially invalid. A conveyancer is your essential partner in a private sale—not an optional extra.
What is a Conveyancer? A conveyancer is a licensed professional who specializes in property transfers. They handle all the legal paperwork, ensure compliance with Queensland property law, and protect both you and your buyer throughout the transaction. Think of them as your legal safety net.
Conveyancer vs Solicitor: What's the Difference?
Conveyancer: Specializes specifically in property transfers. Generally more affordable ($800-$1,500). Focused expertise in real estate transactions. Perfect for straightforward residential sales.
Solicitor: Broader legal training, can handle complex situations. Costs more ($1,200-$2,500). Better for complicated sales (deceased estates, family trusts, disputes).
For most FSBO sales, a conveyancer is ideal: They have the specific expertise you need at a fraction of the cost of full agent commission.
The Contract: Queensland's REIQ Standard
What Contract Do You Use? Queensland uses the Real Estate Institute of Queensland (REIQ) Contract of Sale as the standard for all property transactions. This standardized contract ensures legal compliance and is recognized by all parties—buyers, sellers, solicitors, and financial institutions.
Can You Download and Fill It Out Yourself? Technically yes, but absolutely not recommended. Here's why:
One error can make the contract invalid or unenforceable
You could accidentally create liabilities you don't understand
Missing clauses can cost you thousands in disputes
Buyers won't trust a seller-prepared contract (red flag)
You won't know if special conditions are needed for your situation
The Smart Approach: Your conveyancer prepares the contract. It typically costs $800-$1,500, which includes:
Contract preparation using the REIQ standard form
All necessary searches and certificates attached
Holding the deposit in their trust account
Reviewing the buyer's offer and any counter-proposals
Handling all correspondence until settlement
Managing the settlement process
Compare this to agent commission: On a $750,000 home, an agent charges $18,750-$22,500. A conveyancer costs $800-$1,500. You're still saving $17,000-$21,000.
What Your Conveyancer Does: Step by Step
Before You Accept an Offer:
1. Initial Consultation (Free or $100-$200)
Review your property details
Identify any potential legal issues
Advise on current market settlement periods
Explain the timeline and process
Provide a fixed-fee quote
2. Obtain Required Searches (Included in Fee) Your conveyancer orders and attaches all legally required searches:
Title search (ownership and encumbrances)
Planning certificate (zoning and restrictions)
Building and plumbing approvals
Pool safety certificate (if applicable)
Body corporate records (for units/townhouses)
Water compliance certificate
Rates and utility clearances
These searches must be current (less than 2 months old) and attached to your Form 1 Disclosure Statement.
3. Prepare the Contract (Included in Fee) Your conveyancer:
Completes the REIQ Contract of Sale with accurate property details
Ensures all mandatory disclosures are included
Adds appropriate special conditions if needed
Attaches all required searches and certificates
Reviews for completeness and accuracy
You receive: A professional, legally compliant contract ready for buyer review.
When You Accept an Offer:
4. Contract Review and Negotiation When a buyer makes an offer (usually through their solicitor/conveyancer), your conveyancer:
Reviews the proposed terms
Advises you on any risks or concerns
Helps you craft counter-offers if needed
Communicates with the buyer's legal representative
Ensures all terms are clear and enforceable
5. Contract Exchange Once terms are agreed:
Both parties sign the contract (can be electronic in QLD)
Your conveyancer exchanges signed contracts with buyer's representative
The contract becomes legally binding
The 5-business-day cooling-off period begins (unless waived)
Deposit Handling: The Legal Requirements
The Law is Clear: In Queensland, sellers cannot hold deposits. Full stop. It's not a guideline—it's a strict legal requirement under the Property Occupations Act 2014.
Where Must the Deposit Go? The deposit MUST be held in a statutory trust account by:
A licensed conveyancer (recommended for FSBO)
A licensed solicitor
A licensed real estate agent
An approved settlement agent
Your conveyancer's trust account is the standard solution for private sales.
How It Works:
Step 1: Contract Signed Once both parties sign the contract, the buyer has a specified timeframe (usually 24-48 hours) to pay the deposit.
Step 2: Deposit Paid The buyer transfers the deposit (typically 10% of purchase price) directly to your conveyancer's trust account. Your conveyancer provides:
Trust account details (BSB and account number)
Reference number for the transaction
Receipt confirmation once funds are received
Step 3: Deposit Held Securely The deposit remains in the trust account until settlement. Your conveyancer:
Keeps detailed records of the deposit
Ensures it's kept separate from their business funds
Provides regular trust account statements
Maintains insurance on trust accounts
Step 4: Settlement On settlement day:
Buyer pays the balance (purchase price minus deposit)
Your conveyancer releases the deposit to you
Combined with the balance, you receive the full purchase price
Transfer of ownership is registered
What If the Sale Falls Through?
Buyer defaults (fails to settle): Your conveyancer follows the contract terms, which typically allow you to:
Retain the deposit as compensation
Claim additional damages if losses exceed deposit
Requires formal default notice process
Seller defaults (you fail to settle):
Deposit must be returned to buyer
You may owe additional compensation
Serious legal and financial consequences
Mutual agreement to cancel:
Deposit returned to buyer in full
Both parties sign release documentation
Cooling-off period withdrawal:
Buyer loses 0.25% of purchase price
Remainder of deposit returned
Only applies during the 5-business-day cooling-off period
Typical Deposit Amounts in Queensland
Standard: 10% of purchase price
$650,000 home = $65,000 deposit
$800,000 home = $80,000 deposit
$1,000,000 home = $100,000 deposit
Negotiable: You can accept lower deposits (5%, $5,000 fixed, etc.) but:
Lower deposits may indicate less committed buyers
Reduces your compensation if buyer defaults
Can make it easier for buyers to walk away
Higher deposits: Sometimes buyers offer more to strengthen their offer
Shows serious commitment
Common in competitive markets
Provides greater security to you
Your Conveyancer's Full Service Breakdown
Here's what you get for $800-$1,500:
Pre-Contract:
✅ Initial consultation and property review ✅ All required searches and certificates ✅ Form 1 Disclosure Statement preparation ✅ REIQ Contract of Sale preparation ✅ Special conditions drafting (if needed)
During Negotiation:
✅ Offer review and advice ✅ Communication with buyer's representative ✅ Counter-offer preparation ✅ Contract amendments
Post-Contract:
✅ Trust account for deposit holding ✅ Monitoring cooling-off period ✅ Managing contract conditions (finance, inspections) ✅ Coordinating with buyer's conveyancer ✅ Rates and utility adjustments calculation
Settlement:
✅ Preparing settlement statement ✅ Coordinating settlement date and time ✅ Arranging funds transfer ✅ Releasing deposit to you ✅ Ensuring title transfer is registered ✅ Providing final settlement documents
How to Choose a Conveyancer
What to Look For:
Queensland licensed (check with Office of Fair Trading)
Specific experience with FSBO sales
Clear fixed-fee pricing (avoid hourly rates)
Responsive communication
Professional indemnity insurance
Positive reviews from private sellers
Questions to Ask:
"What's your fixed fee for a straightforward residential sale?"
"What's included in that fee, and what costs extra?"
"How long have you been practicing in Queensland?"
"Have you handled private sales before?"
"What's your typical response time for questions?"
"Do you handle everything until settlement, or just the contract?"
Red Flags: ❌ Unclear or variable pricing ❌ Pressure to use their mortgage broker or other services ❌ Poor reviews specifically about trust account handling ❌ Unavailability or slow responses ❌ Not licensed in Queensland
Where to Find Conveyancers:
Australian Institute of Conveyancers (AIC) - www.aicqld.com.au
Local recommendations (ask friends who've sold privately)
Online comparison sites (compare fees and reviews)
Queensland Law Society (for solicitors)
Timeline: From Offer to Settlement
Day 1: Offer Accepted
You verbally accept buyer's offer
Contact your conveyancer immediately
They begin contract preparation/review
Days 2-3: Contract Preparation
Conveyancer finalizes all documents
Both parties review contract
Any negotiations happen
Day 4-5: Contract Exchange
Both parties sign
Signed contracts exchanged
Contract becomes binding
Cooling-off period begins (if applicable)
Days 6-10: Deposit Payment
Buyer pays deposit to conveyancer's trust account
Conveyancer confirms receipt
Issues deposit receipt
Days 11-90: Settlement Period
Buyer arranges finance (if conditional)
Building/pest inspections completed
Conveyancers coordinate settlement details
You prepare to vacate property
Settlement Day (Usually 30-90 days after contract)
Buyer pays balance
Your conveyancer releases deposit to you
You receive full payment
Ownership transfers
Keys handed over
Common Questions About Contracts & Deposits
"Can I use a conveyancer from another state?" No. Queensland property law is state-specific. You must use a Queensland-licensed conveyancer or solicitor.
"What if I already have a solicitor for other matters?" Great! Check if they handle conveyancing. If not, they can likely refer you to a colleague who does.
"Can the buyer's conveyancer hold the deposit?" Yes, this is common and acceptable. The buyer pays their conveyancer, who holds it in trust. Saves you paying for two conveyancers' trust account services.
"What if the buyer wants to pay deposit directly to me?" Absolutely not. This is illegal and will void the contract. Always use a proper trust account.
"Do I need a conveyancer if I'm selling to family?" YES. Family sales can be more complicated, not less. Proper documentation protects everyone and prevents future disputes.
"Can I change conveyancers mid-sale?" Yes, but it's disruptive and may cost extra. Choose carefully from the start.
"What's included in 'searches' and do I really need all of them?" Yes, they're legally required. Your conveyancer orders: title search, planning certificate, building/plumbing approvals, pool compliance (if applicable), body corporate (if applicable), and water/rates clearances.
Cost Comparison: Conveyancer vs Agent Commission
Example: $750,000 Home Sale
With Real Estate Agent:
Agent commission (2.5%): $18,750
Your solicitor/conveyancer: $1,200
Total cost: $19,950
Private Sale with AirLister:
Conveyancer (full service): $1,200
Professional photography: $450
Marketing/advertising: $500
Total cost: $2,150
Your Savings: $17,800
That's a new car, a renovation, or a significant contribution to your next property deposit—all by handling the marketing yourself while still maintaining proper legal protection.
The Bottom Line
What You Must Do:
Engage a Queensland conveyancer BEFORE accepting any offers
Never attempt to hold the deposit yourself
Use the REIQ standard contract prepared by your conveyancer
Ensure all searches are current and attached
Let professionals handle the legal work
What This Costs: $800-$1,500 for complete conveyancing service—a tiny fraction of agent commission
What You Save: $15,000-$25,000 in agent fees while maintaining full legal compliance and protection
The Smart FSBO Approach: You handle the marketing, showings, and negotiations (the easy parts). Your conveyancer handles the legal compliance, contract, and deposit (the complex parts). Together, you save thousands while ensuring a legally sound, smooth transaction.
Ready to Get Started? Find a Queensland conveyancer today and get a fixed-fee quote. Most offer free initial consultations to discuss your specific situation. This small investment protects your biggest asset and ensures your private sale goes smoothly from contract to settlement.
Remember: Saving on agent commission doesn't mean cutting corners on legal protection. A good conveyancer is your essential partner in a successful private sale.
See more state specific info here
calculate your commission saving here
Got specific state questions - look at our guides
Last updated: January 2026
