The method in one paragraph
NSW’s government lists private treaty as one of the two main ways of selling a home, beside auction. The Northern Territory’s page describes it as offering a property at a set price that is usually negotiated with a buyer, with the deal worked out between buyer and seller, usually with an agent’s help. A buyer does not see what anyone else is offering. You can use it with or without an agent: Victoria’s page says you can sell without an agent’s help, and South Australia’s says you can sell your home yourself.
Private treaty and auction, side by side
The table sets the two methods against each other on the points where the official pages say they differ. Each cell names the state whose page it comes from; a state not named has not been covered here.
| Point | Private treaty | Auction |
|---|---|---|
| Your price | Victoria calls the lowest price you will accept your asking price. In NSW, an agency agreement for a private treaty sale must state the price the home is to be offered at. | The same lowest price is called the reserve (Victoria). In NSW you give it to your agent in writing before bidding begins. |
| Changing it | In South Australia you can change the acceptable selling price, as long as you and your agent record the change in the sales agency agreement, with a date and both signatures. | In South Australia you cannot increase the acceptable selling price for an auction sale. |
| Conditions | In Victoria a seller may turn an offer down for reasons other than price, such as a condition asking for a longer settlement. | In Victoria the contract is unconditional: the buyer cannot make it subject to finance or inspection. |
| Buyer’s cooling-off | In NSW, buyers of homes sold by private treaty usually have 5 working days after exchange. | In NSW there is none for anyone who buys at auction. |
| Your vendor statement | In South Australia the Form 1 goes to the buyer at least 10 clear days before settlement. | In South Australia it is available for 3 business days before the auction, at the auctioneer’s or agent’s office, and at the site for 30 minutes before. |
| Agent’s default term | In Victoria, an exclusive authority with no period stated runs 60 days after signing. | In Victoria it runs to 30 days after the auction. |
When the sale binds
In Victoria the property is sold once both buyer and seller have signed the contract; in NSW the moment is the exchange of contracts, after which sellers have no cooling-off and must uphold the agreement.
The window the buyer keeps
After you both sign, the buyer may still be able to walk away. In NSW, buyers of homes sold by private treaty usually have 5 working days after exchange; in Victoria, three clear business days for private sales of homes and small rural properties, with listed exceptions; Western Australia has no mandatory cooling-off period for real estate contracts. The days before and after an auction, when a private sale can lose its cooling-off, have their own guide: auctions and cooling-off.