Step 1: the section 32 vendor statement
Before a buyer signs a contract in Victoria, the seller must give them a section 32 statement (named after section 32 of the Sale of Land Act 1962). It discloses the title and any mortgages, caveats or covenants, the planning zone and overlays, rates and other outgoings, any notices from authorities, building permits issued in the last seven years, whether owner-builder works were done, services connected to the land, and the owners corporation certificate for an apartment or townhouse. If the statement is missing or materially wrong, the buyer may be entitled to end the contract before settlement.
Read it with the contract, not instead of it. The contract of sale sets the price, deposit, settlement date, inclusions and any special conditions; the section 32 tells you about the land.
Step 2: get both documents reviewed before you sign
Most Victorian sales use the standard Law Institute of Victoria and REIV contract, but special conditions vary with each vendor's lawyer. We check the title plan against what you inspected, the overlays (heritage, bushfire, flooding), the owners corporation's finances and rules, and the special conditions: finance clauses, the vendor's right to delay, who pays for the adjustment of land tax, and whether the deposit can be released early. Settle Easy reviews a standard contract and section 32 within 48 hours.
Step 3: signing, the deposit and the cooling-off period
In Victoria you usually sign the contract as your offer; the vendor signs to accept it, and the contract is formed on acceptance. The deposit, typically 10 per cent, is paid to the agent's or the vendor's lawyer's trust account. For a private sale you have a cooling-off period of three clear business days from the day you sign. If you withdraw, the vendor keeps $100 or 0.2 per cent of the price, whichever is more, and returns the rest. There is no cooling-off period if you buy at or within three clear business days before or after a publicly advertised auction, if the property is commercial or industrial, if it is more than 20 hectares and used for farming, or if you have bought another property from the same vendor on the same terms within the last three days.
Step 4: finance, insurance and section 27
A finance clause in the contract gives you a set date to obtain unconditional loan approval; if finance fails you can end the contract and recover the deposit, provided you follow the clause exactly. Insure the property from the day the contract is signed, as the standard contract places risk with the buyer from that point. The vendor may serve a section 27 statement asking for early release of the deposit; you have 28 days to object, and we advise on whether objecting is in your interests.
Step 5: searches and the transfer
We order the certificates the vendor's statement does not cover or that need updating: land tax, water, council, owners corporation and any planning certificates, and we prepare the transfer of land and the duties online form for the State Revenue Office. Victoria no longer allows vendors to pass land tax on to buyers of residential property under $10 million, so we make sure no such adjustment appears.
Step 6: stamp duty and concessions
Land transfer duty in Victoria is payable at settlement. First home buyers pay no duty on a home up to $600,000 and a reduced rate up to $750,000. Buyers of a home they will live in may be eligible for the principal place of residence rate on properties up to $550,000, and off-the-plan purchases attract a concession calculated on the land and construction completed at the contract date. Use our stamp duty calculator for an estimate and we confirm the figure in your settlement statement.
Step 7: settlement
Victorian settlement periods are set in the contract and 30, 60 and 90 days are all common. Settlement takes place electronically on PEXA. We prepare the statement of adjustments for rates, water and owners corporation fees, confirm the figures with the vendor's side, and settle with your lender's funds and the balance from you. The transfer is lodged with Land Use Victoria and the keys are released by the agent once settlement is confirmed.
After settlement
We give notice of acquisition to the council, water authority and the State Revenue Office. If you claimed the first home buyer exemption you must move in within 12 months and live there for 12 continuous months. Keep the settlement statement for your records.
What it costs
Settle Easy's professional fee for a standard residential purchase in Victoria is a fixed $1,550 plus GST. Certificates and government charges are passed on at cost, typically $400 – $700 for a purchase. Duty and lender fees are separate. See conveyancing fees in Victoria, or get a fixed-fee quote.