Property due diligence before buying in Victoria
What to verify yourself before signing an unconditional contract or bidding at auction — the legal, physical, planning and financial checks, in one guide.
- Due diligence means verifying the legal, physical, planning and financial position of a property yourself before you're bound — not relying on the listing.
- A Section 32 discloses what affects the land; it is not a valuation or condition report.
- A building and pest inspection and a legal contract review check completely different things — budget for both.
- Victoria's cooling-off period has real exclusions (auctions, pre-auction private sales) that catch buyers who assume it always applies.
Who this applies to: anyone buying residential property in Victoria, whether by private sale or auction. When to get professional advice: before removing finance or inspection conditions, and before signing an unconditional contract — a licensed conveyancer or solicitor should review the Section 32 and contract of sale.
In this guide
What due diligence means
Due diligence isn't one document — it's the buyer's own process of verifying the things that matter before signing an unconditional contract or bidding at auction. In practice it covers four separate checks: legal (title, easements, covenants, the Section 32), physical (building and pest condition), planning (zoning, overlays, approved and unapproved works) and financial (owners corporation health, rates, any outstanding charges on the land).
No single professional or document covers all four. A conveyancer reviews the legal position, a building inspector checks the physical condition, and you or your adviser confirm planning controls and the financials. Due diligence is the discipline of doing all four before you're committed — not assuming one check stands in for the others.
Worked example
A buyer shortlists a two-bedroom apartment in Brunswick. Before their offer becomes unconditional, they: (1) have a solicitor review the Section 32 and draft contract, (2) book a building and pest inspection, (3) check the owners corporation certificate for special levies or disputes, and (4) confirm on VicPlan that no pending overlay affects the building. Only after all four come back clear do they remove their finance and inspection conditions.
If a fact matters to your decision and only the seller has confirmed it, verify it yourself before you're legally bound.
Common questions
Which of these counts as due diligence: reading the listing, or reviewing the Section 32?
The Section 32 review. Listing copy is marketing written to sell the property; the Section 32 is the legally required disclosure document.
Who typically confirms the legal position of a property (title, easements, the Section 32)?
A conveyancer or solicitor — the selling agent represents the vendor, not the buyer.
Can a building and pest inspection substitute for a legal review?
No. A building and pest inspection only assesses physical condition — it says nothing about title, easements, covenants or contract terms.
Practical next step: List the four things still to check before the next inspection: title, building condition, planning overlays, and owners corporation (if applicable).
Further reading:
Section 32 fundamentals
In Victoria, a seller must give a buyer a Section 32 vendor statement before a contract is signed — required under section 32 of the Sale of Land Act 1962. It discloses financial matters (rates, owners-corporation fees, charges on the land), insurance status, land use restrictions (easements, covenants, zoning), notices or orders from authorities, building permits from the last 7 years, owners-corporation details, and the title itself.
It is a disclosure document, not a valuation and not a condition report — it states what affects the land, not what the property is worth or what physical state it's in.
Worked example
A $750,000 townhouse's Section 32 discloses a drainage easement across the rear third of the block. The buyer had been planning a rear extension — the easement means that plan needs rethinking before committing, not after settlement.
A Section 32 states what affects the land — not what it's worth, and not what condition it's in.
Common questions
What is the main legal purpose of a Section 32?
To disclose legally required information about the land before a buyer signs — not to advertise the property or provide a valuation.
A Section 32 discloses an easement across part of a block. What does this most likely restrict?
Building over or obstructing that part of the land — an easement usually gives someone else the right to access or use that strip.
What can a Section 32 NOT tell a buyer?
The property's physical condition. That needs a building and pest inspection.
Practical next step: Upload a Section 32 (yours, or a sample you've been sent) to Delora's free Section 32 first-pass summary and compare its flags against this section.
Further reading:
Physical inspection vs legal review
A building and pest inspection is a visual, physical assessment of the structure — signs of movement, damp, pest activity, and safety issues. A legal review (by a conveyancer or solicitor) checks the contract terms, the title, the Section 32's disclosures, and the buyer's legal rights and obligations. They answer completely different questions, and neither substitutes for the other.
A property can pass a building inspection cleanly and still carry a serious legal issue (an undisclosed easement, an owners-corporation dispute) — and a legally clean contract says nothing about a leaking roof or termite damage. Budget and time for both before an unconditional offer.
Worked example
An inspector finds no termites and no structural movement in a weatherboard house. Separately, the buyer's solicitor flags that the Section 32 discloses an unregistered right-of-way at the rear of the block — something no building inspector would ever be asked to check.
A building inspection covers the structure. A legal review covers the buyer's rights. Budget for both.
Common questions
What does a building and pest inspection primarily assess?
The physical condition of the structure — not contract terms, title or owners-corporation finances.
An easement is disclosed in the Section 32 but the house passes its building inspection. Is the property legally clear?
Not necessarily — the easement is a separate legal matter a building inspector wouldn't check.
Who should review the contract of sale and Section 32 for legal risk?
A conveyancer or solicitor.
Practical next step: Before an unconditional offer, confirm both a building and pest inspection and a solicitor/conveyancer contract review are booked.
Further reading:
When cooling-off does not protect you
In Victoria, private-sale buyers generally get a 3-clear-business-day cooling-off period after signing. It does not apply if: the property is bought at auction; the contract is signed within 3 clear business days before or after a publicly advertised auction for that property; or the buyer waives it under the applicable exemption. "Clear business days" excludes weekends and public holidays, and counting starts the day after signing.
Because these exclusions are common — auctions, and pre-auction private sales especially — never assume cooling-off is available. Confirm the specific contract's position before signing, not after.
Worked example
A contract is signed on a Monday. Counting clear business days: Tuesday (day 1), Wednesday (day 2), Thursday (day 3) — the cooling-off period ends at the close of business Thursday. If Tuesday had been a public holiday, the count would push out by a day. If this same contract had instead been signed 2 days before that property's advertised auction date, cooling-off would not apply at all.
Never assume cooling-off applies — confirm the specific contract's cooling-off status before signing, not after.
Common questions
Does the standard cooling-off period apply to a property bought at auction in Victoria?
No — it generally does not apply to auction purchases.
A private-sale contract is signed 2 days before that property's advertised auction date. Does cooling-off apply?
No — sales within 3 clear business days of a publicly advertised auction are excluded.
What do "clear business days" exclude when counting a cooling-off period?
Weekends and public holidays.
Practical next step: Check the front page of the contract for any cooling-off waiver or exclusion clause before signing — don't assume it applies.
Further reading:
Related
Worked example: assessing an apartment with a special levy →
Get a Section 32 first-pass summary →
Home Buyer Planning Checklist →