Contract of Sale Explained
A contract of sale is the legally binding document outlining the terms of your property purchase, including price, settlement date, and any special conditions. It's prepared by the seller's conveyancer and should be reviewed carefully before signing. Understanding every clause protects your interests and helps avoid unexpected obligations after signing.
Section 32 Explained
A Section 32, or Vendor's Statement, discloses key property information before you buy, including title details, zoning, outgoings, and any building permits or notices. Victorian sellers must provide this before you sign. Reviewing your Section 32 carefully, ideally with a conveyancer, helps you spot risks before committing to purchase.
Private Sale
Private sales, or private treaty purchases, let buyers negotiate price and terms directly rather than competing at auction. You typically benefit from a 3-day cooling-off period and more time to arrange finance and inspections. This slower pace suits buyers who prefer certainty and the chance to negotiate favourable contract conditions.
Cooling-Off Period
The cooling-off period gives buyers a short window, typically three business days, to withdraw from a private sale after signing. It doesn't apply to auction purchases. Exiting during this period usually incurs a small penalty. Understanding your rights and deadlines helps you make a confident, informed purchasing decision.
Contract Signing
Signing a Contract of Sale to purchase property is stressful and we are happy to guide you through the process. In our experience, for contracts being signed more than 3-days either side of an auction, we recommend signing the contract subject to Finance and a satisfactory Building and Pest Inspection. We also recommend the Finance being approved and the Building and Pest Inspection being conducted within 7 to 14-days of signing the contract. To place Buyers in the strongest position possible, we advise making the deposit 5% of the purchase price and paying $1,000 upon signing the contract to form the contract with the balance of the deposit payable upon Finance Approval and a satisfactory Building and Pest Inspection. An unsatisfactory Building and Pest Inspection is where there a Major Defect is identified in the Building Report and we encourage you to consult us to advise how to progress in this situation.
Subject to Finance
A subject-to-finance condition makes your contract dependent on loan approval within a set timeframe. If finance falls through, you can typically withdraw without penalty. This clause protects buyers from being locked into a purchase they can't afford. Always confirm the finance deadline matches your lender's expected approval timeline.
Building & Pest Inspections
Building and pest inspections identify structural issues, safety hazards, or infestations before you commit to buying. Arranging these before signing, or within your cooling-off period, protects you from costly surprises after settlement. A clean report brings peace of mind; a concerning one gives you leverage to renegotiate or walk away.
Auctions
Buying at auction means no cooling-off period and an unconditional contract the moment the hammer falls. You must have finance approved and inspections completed beforehand. Auctions move quickly and prices can exceed expectations, so preparation is essential. A conveyancer can review the contract in advance so you bid with confidence.
First Home Buyers
First home buyers should budget for stamp duty concessions, government grants, and conveyancing costs alongside their deposit. Understanding the contract, cooling-off rights, and settlement process reduces stress on your first purchase. Engaging a conveyancer early ensures you meet eligibility requirements and avoid mistakes that could delay or derail settlement.
Stamp Duty
Stamp duty is a government tax paid on property purchases, calculated on the purchase price or property value. Rates vary by state, and concessions may apply for first home buyers or off-the-plan purchases. Your conveyancer calculates this cost and ensures it's paid correctly and on time before settlement.
Settlement Day
Settlement day is when property ownership officially transfers, funds are exchanged, and you receive the keys. Your conveyancer coordinates with your lender, the seller's representative, and relevant authorities to finalise the transaction. A well-managed settlement ensures a smooth handover, letting you move into your new property without unnecessary delay.
