Buying Property in Victoria: Legal Checks Before You Sign
Cooling-off and finance
Most problems I see on a purchase could have been fixed cheaply before the contract was signed.
On most private residential sales you have three clear business days after signing to end the contract by written notice. The vendor can keep $100 or 0.2% of the price, whichever is more. There is no cooling-off for a sale at, or within three clear business days before or after, a publicly advertised auction; commercial or industrial property, or farms over 20 hectares; buyers that are companies or estate agents; or a repeat contract on substantially the same terms (Sale of Land Act 1962 (Vic), s 31). Treat cooling-off as an emergency exit, not time to do due diligence.
Apply for finance promptly and keep the evidence. If the loan is not approved by the approval date, give written notice ending the contract within the short window the contract allows. Miss it and you may have to settle without a loan.
Risk, Section 32 and special conditions
A house generally stays at the vendor's risk until you are entitled to possession. If it is destroyed or made unfit to live in before then, you can rescind (Sale of Land Act ss 34-36). Special conditions or early possession can change that, so insure from the day you sign.
Have the Section 32 checked against the title, plan and certificates, especially for covenants and easements that could stop you extending, section 173 agreements, and heritage, flood or bushfire overlays. If required information is wrong or missing, you may be able to rescind before settlement (s 32K). By mid-2027 at the latest, the statement must be available 14 days before an auction.
The vendor's special conditions are where risk moves. Watch for extra late-settlement interest or costs, "as is" clauses, limits on your right to object or claim compensation, and, for off-the-plan purchases, the sunset date and the vendor's right to vary the plan.
Settlement and how you hold title
The standard contract charges interest at 2% above the Penalty Interest Rates Act rate (12% a year today), plus costs. If a default continues, the vendor can serve a default notice and, if you do not fix it in time, end the contract and keep the deposit. Line up your finance and PEXA details early. Name the inclusions that matter, and inspect before settlement. Decide joint tenants or tenants in common with your lawyer and accountant before signing, and budget for land transfer duty (plus the 8% foreign purchaser additional duty if it applies).
A contract review before you commit costs far less than a problem after settlement. Call (03) 8658 7069.
General information only, not legal advice. For advice on your matter, call MWBL Consulting on (03) 8658 7069.