Buying a home moves fast at the end. After weeks of inspections, an offer is accepted on a Saturday afternoon and the agent has a contract ready to sign. That moment is where most of the risk sits, and where a short review does the most good.
Two documents, read together
In Victoria, a residential sale comes with two documents: the contract of sale and the vendor’s statement, usually called the Section 32. The contract sets out the price, deposit, settlement date and any special conditions. The Section 32 tells you about the property itself: the title, easements and covenants, zoning, outgoings such as rates, and notices from councils or authorities.
Problems tend to hide where the two meet. An easement that runs under the spot where you planned an extension. A permit missing for work the last owner did. A special condition that releases your deposit sooner than you expected.
What we check first
the special conditions, which can change almost anything in the standard contract;
finance, and whether the contract is subject to your loan being approved;
the deposit, how much it is and when it’s payable;
the settlement date, and whether it suits your lender and your current lease or sale;
title, easements, covenants and planning controls in the Section 32;
building permits issued in recent years, and any owner-builder work.
The cooling-off period
For most private sales of residential property in Victoria, you have three clear business days after signing to change your mind, for a small fee. It doesn’t apply if you buy at auction, or within three clear business days before or after a public auction. It also doesn’t apply if you had independent legal advice on the contract before you signed. Don’t treat cooling-off as your review period. It’s short, it has exceptions and it’s easy to lose.
Auctions are different
If you’re buying at auction, there’s no cooling-off and usually no finance condition. You sign an unconditional contract on the day, often with a 10 per cent deposit. That means all of your checking happens before the auction: the contract and Section 32 reviewed, the building inspection done and your finance confirmed in writing. Ask the agent for the contract early in the campaign, not the night before.
Read the special conditions twice
Special conditions are where risk quietly moves from the vendor to you. Common ones release the deposit to the vendor before settlement, charge penalty interest if you settle late, or say you buy the property as it stands with no right to object to defects. None of these is unusual, and several are negotiable. You just need to know they’re there before you sign.
Inspections and finance
Arrange a building and pest inspection before you sign, or make the contract subject to one. If you need a loan, ask for the contract to be subject to finance approval, with enough time for your lender to say yes in writing. Pre-approval is a helpful sign, not a promise.
After you sign
Once the contract is signed, we take care of the steps to settlement: searches, the transfer, land transfer duty and any first home buyer concessions you’re entitled to, and coordinating with your lender and the vendor’s representative. You’ll know each date in advance and who is doing what.
Clare or Jack will review the contract and the Section 32, usually within a day, and tell you in writing which clauses matter and what to ask the agent to change. The review is priced before we start.
