PROPERTY & CONVEYANCING
LAWYERS MELBOURNE

Before signing, the contract should be reviewed as a whole, not just the price and settlement date. In Victoria, the critical documents usually include the Contract of Sale and the Vendor Statement (section 32).

Key matters to check include:

• Title issues 
  Whether there are easements, covenants, restrictions, caveats or other encumbrances affecting the land

• Zoning and planning controls 
  Whether the property can lawfully be used as intended.

• Building approvals and permits 
  Particularly if extensions, renovations or structures have been added.

• Owners corporation matters 
  If the property is an apartment or townhouse.

• Deposit terms 
  Including amount, timing, and whether it is refundable in any scenario.

• Settlement date
  And whether it is realistic from a finance and moving perspective.

• Special conditions 
  These can significantly alter the standard position and sometimes create major risk.

• Fixtures, fittings and inclusions 
  What exactly is staying with the property.

• Tenancy status 
  Whether the property is sold with vacant possession or subject to a lease.

• Finance or other conditions 
  If the contract is unconditional, the buyer may have very limited room to withdraw later.

A pre-signing review often identifies issues that can still be negotiated before the buyer becomes legally bound.

In Victoria, whether you can withdraw from a property contract depends on how the property was purchased.

Buying at auction

If you purchase a property at auction, the contract is legally binding immediately.  

There is no cooling-off period, meaning you cannot change your mind after signing.

Buying by private sale

If you purchase a property through a private sale, you will usually have a 3 business day cooling-off period.

This allows you to withdraw from the contract after signing, although a small penalty (typically 0.2% of the purchase price) may apply.

Important exceptions

Cooling-off rights may not apply in certain situations, including:

• If you waive your cooling-off rights in writing 

• If the property was purchased within 3 clear business days before or after a public auction 

• If the property is used for commercial purposes 

Why legal advice matters

Property contracts can include special conditions that affect your rights. Speaking with us before signing (or as soon as possible after) can help you avoid costly mistakes.

The most common legal risks are not always obvious from the inspection or sales campaign.

They often include:

• Title restrictions such as easements, covenants and other encumbrances.

• Planning and zoning problems, especially where the buyer intends to renovate, develop or use the land in a particular way.

• Unapproved works or overlooked building approvals, which can create expensive compliance issues later.

• Unfavourable special conditions in the contract.

• Failure to secure finance in time, particularly under an unconditional contract.

• Boundary or access issues.

• Owners corporation liabilities or disputes.

• Existing leases or occupancy issues.

• Adjustment disputes involving rates, owners corporation fees or other outgoings.

• Off-the-plan risks, including sunset clauses, plan changes and delays.

In practice, buyers often assume the main risk is the price. Legally, the greater risk is usually buying a property with a problem that was discoverable before exchange but only becomes apparent later.

Even well-managed transactions can encounter problems before settlement.

Common issues include:

• delayed or incomplete finance approval;

• valuation issues with the lender;

• missing or incorrect transfer or mortgage documents;

• delays in discharge of the seller’s mortgage;

• unresolved title issues;

• difficulties with PEXA or electronic settlement preparation;

• adjustment disputes regarding rates, land tax or owners corporation fees;

• problems identified at the final inspection;

• vacant possession issues;

• delayed probate or estate administration where the seller is a deceased estate;

• one party simply not being ready by the due date.

In Victoria, many transactions settle smoothly, but finance delays and other disputes are well-recognised causes of slippage in the timetable.

The best way to reduce risk is to be proactive early rather than reactive later.

Practical steps include:

• have the contract and section 32 reviewed before signing;

• obtain finance pre-approval early, but do not treat it as a guarantee of unconditional approval;

• arrange building and other due diligence enquiries promptly;

• make sure any required special conditions are included before signing;

• provide identification, finance documents and signed paperwork quickly;

• keep track of key dates, especially finance, deposit and settlement deadlines;

• confirm exactly what is included in the sale;

• carry out a final inspection shortly before settlement;

• ensure funds are available and ready well in advance of settlement.

Most conveyancing problems are not caused by one dramatic event. They arise from a series of small issues that were not identified or managed early enough.

The timeframe to prepare a Contract of Sale and Section 32 (Vendor Statement) typically ranges from 5 to 10 business days, depending on the complexity of the property and how quickly required information is obtained.

Preparation is not just drafting — it involves collecting and verifying key documents, including:

• Title search and plan of subdivision 

• Council rates certificate 

• Water authority information

• Owners’ corporation certificate (if applicable) 

• Land tax details Any building permits or notices 

Some of these documents must be ordered from third parties, and delays often arise from authorities or owners’ corporations, not the legal drafting itself.

Preparation may take longer where:

• The property is part of an owner’s corporation

• There are planning or building issues

• The title has restrictions, easements, or caveats 

• Additional disclosures are required 

• We are waiting on certificates from council or other authorities 

Our approach

We prioritise accuracy and compliance. A properly prepared Section 32 is critical — errors or omissions can give a purchaser rights to delay settlement or withdraw from the contract.

For this reason, we ensure all required searches and disclosures are completed correctly before the property is listed for sale.