Contract of Sale: Five Clauses That Decide a Victorian Property Deal
Review before signing, not after
The contract of sale decides who carries the risk when something goes wrong. In Victoria the general conditions are standard. The special conditions are not. Once you sign, your options shrink to cooling-off (if it applies) or negotiating from a weak position.
Watch for sunset clauses in off-the-plan contracts. For residential off-the-plan sales, the vendor cannot end the contract under a sunset clause without your written consent or a Supreme Court order. A distant sunset date can still tie up your deposit for years. Also watch broad disclaimers about building condition or compliance, settlement dates that do not fit your finance or your own sale, and nomination clauses. Nominating a different buyer can attract extra duty if it is not structured properly.
Special conditions and default dates
Vendors should deal expressly with known issues, such as unpermitted works, title defects or subdivision timing, and set out how extensions work. Buyers should negotiate inspection rights, early access, finance and building-and-pest conditions, and an exit if a specified planning or owners corporation issue comes up.
Under the standard contract, late settlement costs interest at 2% above the Penalty Interest Rates Act rate (12% a year today), plus costs. Missing a finance notice date can cost you your right to end the contract. If a default is not fixed within the time set in a default notice, the other party may end the contract, and a vendor can keep the deposit. Diarise every date.
Agent promises and clean exits
Agents negotiate the sale but do not carry the legal risk. If the vendor agreed to fix the fence or leave the spa, write it into the contract. If it is not in the contract, assume you cannot enforce it. Good drafting sets the timetable, says what happens if finance or an approval is late, and gives a clean exit if a key risk materialises.
Send us the contract before you sign or bid. Call (03) 8658 7069.
General information only, not legal advice. For advice on your matter, call MWBL Consulting on (03) 8658 7069.