What to Do When a Property Contract Falls Through (Selling Without an Agent)

When you’re selling without a real estate agent and a property contract falls through, it can feel stressful — but it’s also very common and usually fixable.

This guide explains exactly what to do when a contract collapses during a private sale, why it happens, what your legal position is, and how to relist and recover quickly — without panicking or making costly mistakes.

First: Don’t Panic — Contracts Fall Through All the Time

In Australia, property contracts fall through regularly due to:

• Finance not being approved

• Buyers cooling off

• Unsatisfactory building or pest reports

• Changes in buyer circumstances

This happens just as often in agent-led sales as private sales.
Selling without an agent does not increase the risk when you’re using a solicitor or conveyancer.

Step 1: Confirm Why the Contract Fell Through

Before doing anything else, confirm the exact reason the contract was terminated.

Your solicitor or conveyancer will tell you whether:

• The buyer exercised a cooling-off right

• Finance was declined

• A special condition wasn’t met

• The buyer defaulted

This matters because your rights depend on the reason.

Step 2: Check What Happens to the Deposit

What happens to the deposit depends on why the contract ended.

Cooling-off period

• Buyer may forfeit a small amount (state-dependent)

• Remaining deposit is refunded

Finance or building conditions

• Deposit is usually refunded in full

Buyer default (outside contract terms)

• You may be entitled to keep the deposit (legal advice required)

Never release or retain a deposit without your solicitor’s confirmation.

Step 3: Confirm You’re Free to Relist

Before relisting:

• Confirm the contract is formally terminated in writing

• Ensure there are no ongoing disputes or notices

Your conveyancer will confirm when the property is legally back on the market.

Do not relist until this is confirmed.

Step 4: Decide Whether Anything Needs Fixing

A fallen contract often provides useful feedback, not failure.

Ask:

• Was the price too high?

• Did finance fail due to valuation?

• Did the building report reveal issues?

• Were conditions too restrictive?

Small adjustments now can prevent repeat failures.

Step 5: Update Your Listing (Don’t Hide It)

When selling privately:

• Update availability immediately

• Adjust pricing if required

• Improve photos or description if feedback suggests it

Do not hide the relist. Buyers understand contracts fall through.

Step 6: Re-engage Your Buyer List First

Before going fully public:

• Contact previous interested buyers

• Let them know the property is available again

This often leads to a faster second sale than the first.

Step 7: Tighten Conditions for the Next Contract

To reduce the chance of another collapse:

• Shorten finance approval periods (where appropriate)

• Require evidence of pre-approval

• Clarify settlement dates

• Confirm inclusions clearly

Your solicitor can help you adjust conditions safely.

Step 8: Relist Confidently (Momentum Matters)

Properties that are relisted quickly often:

• Sell faster the second time

• At the same or better price

• With more motivated buyers

Delaying too long can create unnecessary doubt.

Common Reasons Contracts Fall Through (Private & Agent Sales)

• Finance declined after valuation

• Buyer cold feet during cooling-off

• Building or pest issues

• Changes to buyer employment

• Buyer overcommitting

None of these mean your property is “unsellable”.

Does a Fallen Contract Hurt Your Sale?

Usually no, especially if:

• You relist quickly

• You price correctly

• You handle enquiries transparently

Most buyers don’t even know a contract fell through unless told.

What Not to Do After a Contract Falls Through

Avoid:

• Panic discounting immediately

• Hiding information from buyers

• Releasing deposits early

• Relisting without legal confirmation

These mistakes cause more damage than the contract failure itself.

Frequently Asked Questions

Is it more common for contracts to fall through in private sales?
No. Contract fall-through rates are similar across private and agent-led sales.

Should I accept a lower offer next time?
Not automatically. Review why the first deal failed before changing price.

Can I keep the deposit?
Only in specific circumstances. Always seek legal advice.

Do buyers get scared off by relisted properties?
No, as long as the relist is handled professionally.

Bottom Line

When a property contract falls through while selling without an agent:

• It’s common

• It’s manageable

• It doesn’t mean you’ve failed

With proper legal guidance and a calm, structured response, most sellers recover quickly and sell successfully — without paying agent commission.

Got specific state questions - look at our guides

See Complete QLD Private Sale Guide
See Complete NSW Private Sale Guide
See Complete VIC Private Sale Guide
See Complete SA Private Sale Guide
See Complete WA Private Sale Guide
See Complete NT Private Sale Guide
See Complete TAS Private Sale Guide
See Complete ACT Private Sale Guide
See commission saving interacting calculator