What to check in a contract of sale before you sign (Victoria)

In this guide(9 sections)

If you're about to buy a place in Victoria, take a breath before you sign anything. A contract of sale is one of the biggest commitments you'll ever make, and once you've signed and the cooling-off clock runs out, you're locked in. The good news: almost every nasty surprise I've seen over the years was sitting right there in the paperwork, waiting to be spotted. Here's exactly what to look for — in plain English — so you know what you're signing before you sign it. And honestly, the single best move is to let a lawyer read it first; that's what we're here for, and it costs a fraction of getting it wrong.

The short version — before you sign, check these

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First: do you even have cooling-off rights?

This trips people up constantly, so let's be clear. If you buy by private sale, you generally get a 3 business day cooling-off period — you can pull out (you'll lose a small penalty, usually 0.2% of the price, but you walk away). If you buy at auction, or within 3 clear business days before or after one, there's no cooling off at all. None. The moment the hammer falls, you're committed.

That's exactly why getting the contract and the Section 32 checked before auction day matters so much — there's no safety net afterwards.

The Section 32 — the document that holds the surprises

Every Victorian contract comes with a Section 32, or "Vendor's Statement". By law the seller has to give it to you before you sign, and it's where the important facts live. When I read one for a client, I'm looking for the things that quietly cost money or kill the plan:

• Title and ownership — is the person selling actually on the title? Any caveats, mortgages or covenants?
• Easements and covenants — is there a sewer or drainage easement running through the backyard you wanted to build on? A covenant limiting what you can do?
• Owners corporation (for units and apartments) — fees, special levies, disputes, the financial health of the owners corporation. A looming special levy can be tens of thousands.
• Rates, land tax and outgoings — what's owing, and what you'll inherit.
• Zoning and planning overlays — heritage, bushfire, flood, or planning restrictions that affect what you can do with the place.
• Building permits in the last 7 years — and whether they had proper certificates. Unpermitted works become your problem after settlement.

If something's missing from the Section 32, or it's plain wrong, you may have the right to walk away — but only if you catch it in time.

The money bits — price, deposit and GST

Check the price is right (you'd be amazed), and the deposit — usually 10%, sometimes negotiable. The big one people miss: GST. For an ordinary established home it usually doesn't apply, but for new builds, off-the-plan, or anything sold by a developer, make sure the contract is clear about whether GST is included or on top. A 10% surprise on a $900,000 purchase is not the kind of surprise you want.

The settlement date — be realistic

Settlement is the day the money changes hands and the place becomes yours. Common periods are 30, 60 or 90 days. Make sure it genuinely lines up with your finance approval and your moving plans — settling late can trigger penalty interest, and that's an expensive way to learn a lesson. All Victorian settlements run electronically through PEXA now, which is smoother, but the date in the contract still has to be one you can actually meet.

Special conditions — read every one

This is where contracts are won and lost. Watch for:

• "Subject to finance" — if your loan isn't formally approved, do you have a finance clause that lets you out? An unconditional contract without one is a real risk.
• Building and pest inspection — is the contract conditional on a satisfactory report, or are you buying as-is?
• Off-the-plan sunset clauses — for off-the-plan purchases, the sunset clause lets the contract end if the build isn't finished by a certain date. Know who can use it and how.
• Extra vendor conditions — sellers sometimes slip in conditions that shift risk onto you. These are negotiable far more often than people realise.

What actually stays in the house?

"Fixtures" (things attached — built-in robes, the oven) usually stay; "chattels" (loose things — the fridge, washing machine) usually go, unless the contract says otherwise. If you're expecting the dishwasher, the blinds, the shed or the solar panels to be there on settlement day, make sure they're named in the contract. I've seen settlements sour over a missing pizza oven.

The honest bottom line

You're allowed to read and sign a contract yourself. But a contract of sale is dense, the Section 32 is denser, and the cost of missing something — an easement, a special levy, an unpermitted extension, a GST surprise — lands entirely on you, after you've signed. A 15-minute review before you sign is the cheapest insurance in the whole transaction. If you've got a contract in front of you, don't sign on the spot — send it to me first. The first look is free.

Frequently asked questions

Can I get out of a contract after I've signed it in Victoria?

If you bought by private sale, you usually have a 3 business day cooling-off period to change your mind (with a small penalty). If you bought at auction, there's no cooling off — you're committed the moment the hammer falls. After cooling off ends, you can generally only exit if a special condition (like a finance clause) lets you.

Do I really need a lawyer to check a contract of sale?

You're not legally required to, but it's the smartest cheap move you can make. The contract and Section 32 hide the costly surprises — easements, special levies, unpermitted works, GST. A quick review before you sign costs a fraction of what any one of those problems costs after.

What's the difference between the contract of sale and the Section 32?

The contract is the agreement to buy at a price on terms. The Section 32 (Vendor's Statement) is the disclosure document attached to it — title, what's owed, zoning, owners corporation and so on. You read them together, and both before you sign.

Is there cooling off if I buy at auction?

No. There's no cooling-off period for auction purchases, or for a sale made within three clear business days before or after a publicly scheduled auction. That's why a pre-auction contract review matters so much.

What should I check before an auction specifically?

Everything above — because there's no going back. Get the contract and Section 32 reviewed, sort your finance, and do your building and pest checks before you raise your hand. By auction day, your homework should be done.

What happens if the Section 32 is wrong or missing something?

Depending on what's missing and how serious it is, you may have the right to end the contract — but there are time limits and conditions, and it's exactly the kind of thing worth getting advice on quickly rather than guessing.