Settlement & contracts
What happens at settlement, the pre-settlement inspection, adjustments, the Section 32 vendor statement's legal requirements, and due diligence before signing or bidding. Every figure is drawn from this graph of claims, each traced to a specific, actually-fetched government or regulator source. This page is generated directly from that graph, not maintained separately from it. See the full knowledge base for other subjects.
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Delora fetches primary sources — government departments, regulators and authoritative registers — archives them with a content hash, and extracts specific, citable claims from them. Guide pages and tools read from these claims rather than having figures typed directly into prose, so every figure a reader sees links back to where it came from and when it was last verified. A monitor re-fetches each source and flags genuine content changes for review — nothing is republished automatically.
Source catalogue (26 sources)
Every source in this subject, grouped by issuing authority.
ACCC (Scamwatch)
Australian Securities and Investments Commission (ASIC)
Consumer Affairs Victoria
D Davis & Associates (legal practice commentary)
Department of Justice and Community Safety Victoria
First Title Insurance
Moneysmart (ASIC)
Pearson Chambers (Victorian barristers' chambers)
State Revenue Office Victoria
Stewart Title Limited (APRA-regulated)
Supreme Court of Victoria
Victorian Government
Victorian Government (Dispute Settlement Centre of Victoria)
Victorian Government (legislation.vic.gov.au)
Victorian Government (vic.gov.au)
Zettle Conveyancing
Active claims (49)
Every claim in this subject currently powering a guide, with its confidence and last verification date.
A buyer cannot make an auction contract subject to further conditions — such as obtaining finance or a longer settlement period — unless the seller agrees to them.
There is no cooling-off period for a property bought at auction in Victoria. If a pre-auction offer is accepted less than three clear business days before the scheduled auction, the buyer also forfeits the cooling-off period.
A building dispute with a builder should first be raised directly with them; if it can't be resolved, Domestic Building Dispute Resolution Victoria (DBDRV) offers free conciliation and generally must be tried before an application to VCAT.
Consumer Affairs Victoria's own guidance for sellers on buyer default is minimal by design and defers to a solicitor: 'If the buyer defaults on the contract of sale or the agreed deposit, seek independent legal advice.' CAV does not itself publish the specific notice periods, resale rights or default-interest mechanics — those are governed by the individual contract.
Consumer Affairs Victoria recommends a buyer engage their own legal practitioner or conveyancer, who can review and advise on the Section 32 statement and the contract of sale, find and review the property title, and ensure the transfer of title is done correctly.
Domestic Building Dispute Resolution Victoria (DBDRV) is now part of the Building and Plumbing Commission (BPC). A homeowner with a building dispute should first discuss the issue directly with the builder, then put concerns in writing if that doesn't resolve it, and can lodge a DBDRV/BPC dispute resolution application if there is no reasonable response.
Domestic building insurance can cover the cost of repairs if a builder has died, disappeared or become insolvent; it applies to work worth more than $16,000 and lasts 6 years from when the work was completed.
Consumer Affairs Victoria's due diligence checklist for home and residential property buyers covers: urban living, owners corporation, growth areas, flood and fire risk, rural properties, earth resource activity (mining), soil and groundwater contamination, land boundaries, planning controls, proposed or granted planning permits, safety, building permits, Aboriginal cultural heritage and building plans, insurance cover for building or renovation works, utility connections (water, sewerage, electricity, gas, telephone, internet), and buyers' rights.
Consumer Affairs Victoria recommends buyers request to see and thoroughly read the contract of sale and Section 32 statement, since they contain important information about the property, and to consider engaging a lawyer or conveyancer before committing to a purchase.
Sellers, or the estate agent acting for them, must make Consumer Affairs Victoria's due diligence checklist available to prospective buyers at open-for-inspections.
Victorian buyers are entitled to inspect the property at any reasonable time during the week before settlement. The contract requires the seller to return the property in the same condition as when it was sold, so a buyer should use this inspection to confirm all contract-listed items are present and undamaged, and raise any new damage before settlement.
Victoria's private-sale cooling-off period does not apply if: the property was bought at public auction or within three clear business days before or after one; the property is used mainly for industrial or commercial purposes; the property is rural land over 20 hectares used mainly for farming; the buyer previously signed a contract for the same property on substantially the same terms; or the buyer is an estate agent or a corporate body.
A cooling-off period of three clear business days applies to private sales of residential and small rural property in Victoria. It begins from the date the buyer signs the contract, not the date the seller signs it.
If a buyer exercises their cooling-off right on a Victorian private sale, they are entitled to a refund of any money paid, less $100 or 0.2% of the purchase price, whichever is greater.
A Victorian Section 32 vendor statement must be factually accurate and complete. If it contains incorrect or insufficient information, a buyer may be entitled to withdraw from the sale or pursue legal action against the vendor.
A Section 32 statement's title information (mortgages, covenants, easements) does not cover the condition of buildings on the land or whether they comply with building regulations -- that requires a separate building inspection.
In Victoria, a vendor's statement (Section 32) is required under section 32 of the Sale of Land Act 1962 (Part II, Division 2) and must be given to the buyer before they sign the contract of sale.
A Victorian Section 32 vendor statement must disclose information about the property's title including mortgages, covenants and easements, the zoning that applies, outgoings such as rates, and whether the land is declared to be in a bushfire-prone area. For a property in an owners corporation, an owners corporation certificate and its accompanying documents must be included.
At settlement, outgoings such as council rates and other charges are adjusted between the buyer and seller — the seller is responsible for rates up to and including settlement day, and the buyer from the day after. Land transfer duty is calculated on the purchase price or market value, whichever is greater, and can be paid at settlement or within three months after.
A Victorian buyer should arrange building insurance to take effect from when the seller signs the contract of sale, not from settlement day, since the buyer carries an insurable interest in the property from contract signing even though the seller's own insurance typically remains in place until settlement.
Consumer Affairs Victoria describes land transfer duty as usually paid at settlement, with up to three months afterwards allowed, though title cannot transfer until it's paid. The State Revenue Office — the administering authority — states duty must be paid before the transfer can be registered, usually at settlement, with penalty tax and interest risked after 30 days. The SRO's requirement is the controlling current operational source on timing.
At settlement in Victoria, three things happen: the buyer pays the balance of the purchase price to the seller, the buyer receives the property title and becomes the registered owner, and the buyer takes possession of the property (unless otherwise arranged). Settlement is usually conducted between the buyer's and seller's legal practitioners or conveyancers and lenders, not the buyer and seller directly.
At settlement, the buyer pays the balance of the purchase price, receives the property title and becomes the registered owner, and takes possession of the property (unless otherwise arranged) — usually collecting keys from the agent once settlement is completed.
Statutory building warranties covering the standard of workmanship for domestic building work apply for up to 10 years from the date the occupancy permit or certificate of final inspection was issued — even if the property has since been sold.
A transfer of land document transfers ownership from seller to buyer and, for joint buyers, sets out whether they hold the property as joint proprietors (ownership automatically passes to the survivor on death) or tenants in common (each holds a separate, disposable share). It's usually lodged with Land Use Victoria by the buyer's legal practitioner, conveyancer or lender.
The Sale of Land Act 1962 (Vic) is Act number 6975/1962. As registered by Delora in July 2026, the in-force consolidated version was Version 173, effective from 1 July 2026 -- amendments are versioned, so any claim citing this Act should record which version it was checked against.
Home building insurance covers the cost of repairing or replacing the house itself, its fixtures and other structures on the property — not household items or personal belongings, which need separate contents insurance.
Moneysmart (ASIC)'s general insurance guidance recommends downloading and reading a policy's Product Disclosure Statement (PDS) to understand exactly what is and isn't covered, notes the cheapest policy may not provide the cover needed, and cautions that insurance comparison websites 'are businesses and may make money through promoted links' and may not cover all available options.
Comparing home insurance policies should weigh the premium, the excess, exclusions and cover limits, legal liability cover, and any extended cover above the sum insured; insurers must provide a Key Fact Sheet in a government-set format to make comparison easier.
An owner in a strata or owners-corporation title may not need their own home building insurance if the body corporate insures the building, but still needs contents insurance for personal belongings — confirm the exact split of responsibility.
To avoid underinsurance, home insurance cover should reflect the full cost of rebuilding — including landscaping, rubbish removal and solar panels — and should be reviewed at least every 12 months as rebuilding costs change.
Scamwatch (ACCC) warns that payment redirection scams — also called business email compromise scams — commonly target property settlement payments, with scammers impersonating a solicitor, conveyancer or other trusted party and sending an email with altered bank account details. Scamwatch recommends: 'Don't rush to act. Take the time to call the business you are dealing with — using contact details you've found independently — to check the payment details are correct.' A professional-looking email or an email thread that appears genuine does not prove payment instructions are genuine.
Every property transfer requires a Digital Duties Form, even when the transaction is exempt from duty; a conveyancer, solicitor or bank normally lodges it and pays duty on the buyer's behalf via Duties Online.
Land transfer duty must be paid before the property transfer can be registered, usually at settlement. If it isn't paid within 30 days of settlement, penalty tax and interest may apply.
A buyer who believes they overpaid duty — for example, because an eligible exemption or concession wasn't claimed — can apply for a reassessment within 5 years of paying.
Residential title insurance in Australia typically covers: unapproved/illegal building works carried out by a previous owner (if not already disclosed by a council/public-records search); boundary encroachments and fences built by a previous owner that extend onto the insured's land; unregistered easements or rights of way affecting the title; fraud, forgery or impersonation affecting the title or a mortgage; and errors or omissions in public or local-authority searches conducted at purchase.
Title insurance is explicitly not a substitute for home building or contents insurance — it does not cover physical damage to a building (fire, storm, flood, pests, vandalism). It also generally excludes: risks the buyer created, allowed or agreed to; risks already known to the buyer at the time the policy is taken out; and — critically for unapproved building works specifically — a defect that a standard council/local-authority search or a building inspection report the buyer already obtained would have disclosed. A defect already found before the policy is taken out generally isn't covered.
Title insurance is typically sold as a one-off premium (no ongoing annual payments) that provides cover for as long as the buyer owns the property; cover does not automatically transfer to a subsequent buyer of the property. One insurer (First Title) states an average cost of less than $700 for a residential policy; price varies by insurer, property value and policy terms. Title insurance is optional in Australia — there is no legal requirement to purchase it when buying a home.
Building work on a common boundary — such as demolishing an existing wall to build a new one, or new construction on the boundary line that replaces the need for a fence — is not 'fencing works' under the Fences Act and is instead governed by the Building Act 1993, with protection-work guidance available from the Victorian Building Authority.
In Victoria, unpaid land tax (including Vacant Residential Land Tax, interest and penalty tax) is a first charge on the land and continues as a charge even if the land is sold, so a purchaser can become responsible for a vendor's unpaid land tax. A purchaser is protected from tax exceeding what's shown on a Property Clearance Certificate only if they obtain their own certificate from the State Revenue Office; relying on a certificate the vendor supplies does not give the same protection.
The Dispute Settlement Centre of Victoria (DSCV) provides free mediation for neighbourhood disputes including fencing, run by a trained, impartial accredited mediator. There is no charge. Mediation is voluntary — a party who doesn't want to attend can't be compelled to. Mediations can usually be arranged within about a fortnight depending on the availability of both parties, and a session typically takes around 2 to 3 hours, though some disputes take longer.
From 3 August 2024, Land Use Victoria stopped issuing paper certificates of title. When a property transfer is registered after that date, electronic control of the certificate of title is issued to the relevant party (typically the buyer's lender or their conveyancer/solicitor via the electronic lodgment network) rather than a paper document being handed to the buyer. Existing paper certificates already on issue remain valid until the next transaction involving that property.
Under Victoria's Fences Act 1968, the cost of a dividing fence (and subsidiary works like design, land clearing, removing the existing fence, boundary survey and approvals) is shared equally between neighbours by default. Exceptions: a neighbour who wants a higher-standard or more expensive fence than a 'sufficient dividing fence' pays the cost difference themselves, and a neighbour who deliberately or negligently damaged the fence must pay for its repair.
Victorian law doesn't set a fixed height or material for a dividing fence — neighbours must contribute equally to a 'sufficient dividing fence', determined by factors including the style of any existing dividing fence, how the land is used, reasonable privacy and security concerns, and the types of fences used locally. For a residential property, a sufficient dividing fence might be a 1.8 metre timber paling fence; for a rural property, a wire-and-post fence.
Most residential or retail tenants do not have to contribute to fencing costs. A long-term renter may be required to contribute, based on the remaining length of their lease at the time: less than 5 years remaining, the renter pays nothing; 5 to 10 years remaining, the renter pays half the rental provider's share; more than 10 years remaining, the renter pays all of the rental provider's share. A long-term renter is only liable if they receive the specific notices required under the Fences Act (set out in the Fences Regulations 2024).
A Fencing Notice is a formal document proposing to repair, replace or build a dividing fence; the neighbour has 30 days to respond from receipt (registered post recommended for proof of delivery). If they don't respond within 30 days, the fencing works can proceed and costs can be recovered from them via the Magistrates' Court of Victoria. Critically, a neighbour is not legally obliged to pay anything toward a fence unless the correct legal process was followed, or they gave consent, before work started — starting work first and asking for payment afterward is not sufficient. An exception applies for urgent repairs (e.g. fence damaged by a falling tree, fire or flood): work can proceed without prior notice, but an urgent fencing notice must still be given afterward to seek a cost contribution.
From 1 July 2026, Victoria's Home Warranty scheme applies to eligible domestic building contracts signed on or after that date, generally for building work valued over $20,000 and 3 storeys or less. Unlike the earlier Domestic Building Insurance (DBI) scheme, which could only be claimed against in narrow circumstances (the builder dying, disappearing or becoming insolvent), Home Warranty is a 'first resort' scheme: cover can be claimed when a building issue is first identified, including lost deposits and incomplete, non-compliant or defective work, without waiting for one of those trigger events. Consumers receive automatic protection on entering an insurable domestic building contract, regardless of whether the builder has actually paid the insurance premium.
Victoria's statutory penalty interest rate, fixed under the Penalty Interest Rates Act 1983 by the Attorney-General, has remained at 10% per annum since 1 February 2017. This is the general civil-judgment rate; Victoria's standard Contract of Sale sets its own settlement-default interest with reference to this statutory rate (commonly a margin above it), rather than using it directly — confirm the exact rate in the specific contract before relying on a figure.
Under Victoria's standard Contract of Sale, if a buyer fails to settle, the vendor generally must first give a written default notice (General Condition 34) allowing the buyer 14 days to remedy the default, including any reasonable costs and interest. If the default isn't remedied within that period, the vendor may (General Condition 35) end the contract, keep the deposit (commonly up to 10% of the purchase price), take possession, resell the property, and claim further losses — including any shortfall between the original and resale price plus reasonable resale costs — with the forfeited deposit credited against that further claim rather than kept in addition to it. A buyer's liability on default is not capped at the deposit.
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