What is a private treaty?

Highlands Property | October 2026

Private treaty is a way of selling property through offers and negotiation, rather than bidding at an auction. The seller sets an asking price, and interested buyers make offers through the agent. The price and terms are agreed between the buyer and seller before contracts are exchanged.

How does a private treaty sale work

The property is advertised and buyers arrange inspections or attend open homes. A buyer who wants to proceed submits an offer, including their proposed price and any terms they would like considered.

The agent discusses the offer with the seller. The seller can accept, decline or negotiate. There may be more than one interested buyer, so a private treaty sale can still involve competition.

Is private treaty the same as selling privately

No. Private treaty describes the method of sale. A seller can appoint a real estate agent to market the home, manage enquiries and negotiate offers. Selling privately usually means selling without an agent. The similar wording can be confusing, but the two terms refer to different things.

Can buyers offer less than the asking price

Yes. Buyers can make an offer below the asking price, but the seller does not have to accept it. The seller may also consider the proposed settlement date and other terms, rather than the price alone.

For buyers, it helps to understand recent sales of similar homes and stay within an affordable budget. For sellers, the asking price should reflect the property and current market evidence.

How is it different from an auction

At an auction, buyers bid publicly at a scheduled event. In a private treaty sale, offers are discussed through the agent rather than made as public bids. The campaign does not need a set auction date, although a seller may set a deadline for offers.

The cooling off rules also differ. An auction purchase has no cooling off period. The same applies when contracts are exchanged on the day of an auction after the property is passed in, meaning it did not sell at the auction.

When does the sale become legally binding

In a NSW private treaty sale, accepting an offer does not usually make the agreement legally binding. That happens when the buyer and seller exchange signed contracts. Before exchange, either party can usually change their mind, and the seller may accept another offer.

Buyers should have their solicitor or licensed conveyancer review the contract and confirm any agreed changes. They should also check finance arrangements and discuss the timing of property inspections before proceeding.

Is there a cooling off period

Most NSW residential private treaty purchases have a five business day cooling off period after exchange. Off the plan purchases generally have ten business days. The period can be changed by agreement or waived with a certificate from the buyer’s solicitor or conveyancer.

Ask your legal adviser what applies to your contract before signing. Withdrawing during the standard cooling off period generally means losing 0.25% of the purchase price. Sellers do not have the same cooling off right.

Is private treaty the right choice for my home

It may suit a seller who wants to advertise an asking price and consider offers as they arrive. However, the result still depends on buyer interest, pricing, presentation and the way the campaign is managed.

Ask your agent why they recommend a particular method for your property. A useful explanation should consider your goals, timing and the likely buyers, rather than assume one method suits every home.

How can Highlands Property help

At Highlands Property, we can explain your selling options and help you choose a campaign that suits your home and circumstances. For buyers, we can explain how to submit an offer and keep you informed as negotiations progress. Speak with our local team about your next property chapter.