Updated 27 October 2026
Contract for Sales - Seller’s Most Asked Questions #39. How do I handle emotional attachments to my property?
CM Lawyers guide to sellers’ contract questions
Make room for emotion before making a commitment
Selling a home can mean leaving years of family memories. Buying can create an equally powerful urge to secure a place before somebody else does. Both feelings deserve attention, but the price, finance and contract still need careful checking. In NSW, a rushed commitment can expose a buyer to losing their deposit and facing a further damages claim.
For sellers, the practical answer is to decide your priorities before negotiations become pressured. For buyers, it is to establish what finance is actually available and what contractual protection remains. Taking legal advice before signing gives you time to make those decisions while you still have options.
Keep sentimental value separate from the asking price
Your memories can make a home irreplaceable to you. Buyers assess its location, condition, layout and alternatives on the market. Ask your agent to explain recent comparable sales and the reasons for their recommended price. An independent valuation may help where owners disagree or the financial consequences require closer assessment.
Before listing, write down why you are selling, your preferred timing and the minimum net proceeds your next move requires. Allow for mortgage discharge, commission, legal fees and moving expenses. Compare an offer with the cost and uncertainty of waiting, rather than treating a lower offer as criticism of your home.
Keep photographs and meaningful possessions, and allow time to say goodbye before inspections begin. Agree with co-owners how offers will be discussed and who will communicate with the agent. If a negotiation becomes upsetting, ask for a short pause where deadlines permit. A planned response is easier than making commitments in an emotional conversation.
Assess the whole offer, including the deposit, proposed settlement date and any conditions. An attractive price may come with timing or finance risks that matter to your next purchase. Discuss these with your agent and lawyer before accepting changes. If you are buying and selling together, work out what happens if one settlement is delayed and avoid assuming the two transactions will automatically protect each other.
Understand when the seller becomes bound
In an ordinary NSW sale, the parties are generally not bound until contracts are exchanged. A seller is not normally required to accept an offer merely because it appears reasonable. NSW guidance on offers and gazumping explains that buyers generally cannot recover their inspection or legal expenses simply because another buyer secures the property before exchange.
That does not excuse misleading conduct or override a separately enforceable agreement. Once exchange occurs, the position changes substantially. NSW sale-contract guidance confirms that sellers have no statutory cooling-off period. Regret or sentimental attachment does not itself provide a right to withdraw. Obtain advice before promising inclusions, changing settlement arrangements or attempting to cancel.
Christine recalls a young couple who committed too quickly
I assisted a young couple who rushed into signing a contract for a property before receiving formal approval from their bank. They did not obtain the finance needed to proceed and lost their deposit. Our work then included negotiating to avoid further damages if the seller resold the property for a lower price.
This anonymised matter is a reminder that the deposit may be only part of a buyer’s exposure. Once finance becomes a problem, the discussion can move from securing a home to managing contractual liability. Negotiation may help, but a seller is not obliged to release a buyer simply because the bank has not approved the loan.
My advice is to involve your lawyer and lender before committing. Make sure they understand the property, proposed price and deadlines. Excitement about a home should not leave the finance checks until after your ability to withdraw has ended.
Preapproval and formal approval are different
NSW guidance on conditional home loan approval expressly warns that preapproval does not guarantee a loan. Full approval involves more detailed assessment, including the property’s valuation. A borrowing estimate, online calculator or encouraging conversation with a broker should not be treated as confirmation that the purchase can settle.
Ask for written confirmation of the approved amount, the property covered and outstanding conditions. Check how much cash you must contribute after purchase costs. A valuation below the contract price can create a funding gap. CommBank’s explanation of the lending process illustrates that final checks and loan documents are separate stages; each lender’s requirements must be confirmed.
Sometimes a lender requires a signed contract before completing its assessment. Your lawyer should then address the risk through an adequate cooling-off period or a negotiated finance condition before exchange. A finance condition is not automatically included in every NSW contract, and the seller must agree to it.
If a finance condition is agreed, have your lawyer explain its approval deadline, required steps and notice requirements. Tell the lender about that deadline. Even with approval, arrange signed loan documents and your own contribution in time for settlement, and report any change in your financial circumstances promptly.
Protect the time available to check finance
Under the NSW rules on contracts and deposits, ordinary residential purchases generally have five business days of cooling-off after exchange. Off-the-plan purchases generally have ten. There is no cooling-off period at auction or where contracts are exchanged on the same day after the property is passed in. A section 66W certificate can waive cooling-off rights.
Using the ordinary statutory cooling-off right generally costs 0.25% of the price, rather than the entire deposit. Your lawyer must check the applicable deadline and serve a valid notice in time. Asking the bank for an update does not extend that deadline. If more time is needed, obtain the seller’s written agreement before it expires; do not assume an extension will be granted.
Losing the deposit may not end the liability
Where a buyer defaults and the seller validly terminates, the contract may allow the seller to retain the deposit and claim additional recoverable loss. A resale at a lower price can be relevant, together with permitted costs. The amount depends on the contract, evidence and applicable damages rules; it is not automatically every amount the seller demands.
A lawyer should check the validity of notices and termination, how loss was calculated, whether reasonable steps were taken to limit loss and how the retained deposit must be credited. Paying a deposit is not the same as purchasing an unrestricted right to walk away.
A verified NSW case involving a funding shortfall
In Cole v Raykir Holdings Pty Ltd [2019] NSWSC 1017, a company contracted to buy a South Turramurra property for $2.83 million. A lower lender valuation and the withdrawal of an expected investor contributed to funding difficulties. The purchaser failed to complete despite an extension, and the Supreme Court upheld the sellers’ termination.
The property resold for $2.23 million, a $600,000 difference. After crediting the $141,500 deposit, the Court awarded $458,500 against the purchaser and its guarantor, plus interest and costs. This separate court case demonstrates the potential exposure beyond a deposit; it is not the young couple’s matter described above.
Act early if finance or settlement is in doubt
Send your lawyer the contract, approval correspondence and any default notice immediately. Ask the lender what remains outstanding and when funds could realistically be available. Your lawyer can assess withdrawal rights, an extension or a negotiated termination and release. Any agreement should clearly address the deposit, costs and whether further claims are released.
Sellers should also obtain advice before terminating or reselling, particularly where their own purchase depends on the proceeds. A defective termination can create another dispute. Keep records and consider commercially sensible proposals without assuming that an angry response will improve recovery.
Have the proposed transaction checked before signing
Whether you are selling your property or buying your next home, arrange contract advice early. Christine Manolakos and CM Lawyers can review the terms and explain the risks before you commit. Contact our team before exchange, auction or a finance deadline. This guide should always be checked by a lawyer against your actual contract and circumstances.
General information about NSW property transactions only. Obtain legal advice for your contract and confirm lending requirements directly with your lender.
Key resources
NSW guidance on making an offer — Negotiations, expression-of-interest payments and gazumping.
NSW sale-contract requirements — Exchange and the absence of a seller cooling-off period.
NSW contracts and deposits — Buyer cooling-off periods, auction exceptions and withdrawal costs.
NSW conditional home loan approval and CommBank’s lending process — The difference between preapproval, final assessment and loan documentation.
Cole v Raykir Holdings Pty Ltd [2019] NSWSC 1017 — Official judgment, particularly paragraphs 24–33, 79 and 84–94.
S T Investment Pty Ltd v Geng [2020] NSWSC 329 and Galafassi v Kelly [2014] NSWCA 190 — Reproduced judgments on deposit credit, recoverable loss and resale obligations.
CM Lawyers — Property contract reviews and fees — Have the contract reviewed before you sign or bid.
