Do you know what you're really buying?

Buying a home is exciting — but before you sign on the dotted line, it’s critical to understand exactly what you’re purchasing. In Victoria, many buyers are surprised to learn that once a Contract of Sale is signed, your rights are limited.

Here are the key things every purchaser should check before signing a contract to buy a property.

1. The condition of the property and included goods

One of the most important things to understand is this: You buy the property in the condition it is in at the date you sign the Contract — not at settlement.

This means you should do a thorough inspection before signing, including:

• Opening and closing cupboards, doors and windows
• Testing appliances and electrical goods included in the sale
• Checking smoke detectors are installed and working
• Looking for cracks in walls, ceilings and around switchboards
• Checking behind furniture where possible

Once you sign the Contract, you are generally confirming (in the Special Conditions) that you have personally inspected the property and accept its condition, along with any goods included in the sale.

2. Is a building and pest inspection worth it?

In short — yes.

We strongly recommend obtaining building and pest inspection reports before signing the Contract. While a Contract can be made subject to these reports, the standard General Conditions only give you limited rights to end the Contract if major defects or pest infestations are found.

Importantly, they do not give you an automatic right to:

• Ask the vendor to fix issues, or
• Renegotiate the purchase price

By arranging inspections before signing, you can make an informed decision and negotiate repairs or a price reduction upfront if issues are identified.

3. Checking fenced boundaries - 'measuring up'

When you sign a Contract, you buy the land “as is and as fenced.”

This means you should measure the fenced boundaries and check they align with the Title Plan, which is included in the Section 32 Statement. Any errors or discrepancies in boundary measurements will not invalidate the Contract, and you won’t be compensated if the fenced area is smaller than shown on the plan.

Failing to check boundaries can lead to:

• Fence disputes with neighbours
• Loss of land through adverse possession in some circumstances

4. Easements

Most properties are affected by easements, which are areas set aside for things like:

• Drainage, pipes or cables
• Rights-of-way allowing others to pass over the land

Easements are shown on the Title Plan and disclosed in the Section 32 Statement. Before signing, you should ensure that:

• No buildings or structures are built over easements
• Any future plans you have for the property won’t be restricted

5. Covenants, Section 173 Agreements and other title restrictions

Some Titles include restrictions that limit how land can be used or developed. These may include:

• Building envelopes shown on the Title Plan
• Covenants restricting dwelling size, colour, materials or land use
• Limits on the number of animals kept on the property
• Section 173 Agreements restricting subdivision or requiring agricultural use

It’s important to confirm that both existing and proposed buildings comply with these restrictions.

6. Building works and renovations

Any building works carried out on a property must be disclosed in the Section 32 Statement.

“Works” is broadly defined and includes:

• Structural works or works requiring permits completed in the last 7 years
• Renovations completed in the last 2 years

Depending on the works, documents may need to include:

• Building permits
• Certificates of Final Inspection
• Owner Builder Defects Reports
• Owner Builder Warranty Insurance

If the value of works is $16,000 or more, warranty insurance is required. Under the Building Act 1993, it is illegal for an owner-builder to sell a property without the required report or insurance.

7. Material facts

Vendors and selling agents must disclose anything that could reasonably affect your decision to buy a property.

You are also entitled to ask direct questions about potential “deal breakers”. If asked, the vendor must answer truthfully. Failing to do so can result in significant penalties.

That said, vendors are not required to undertake investigations — they only need to disclose what they already know.

8. Why a final inspection matters

A final inspection allows you to check that the property’s condition has not changed since you signed the Contract.

You can only require the vendor to fix issues that occur after signing (for example, a broken window or appliance that was working previously). This is why checking the condition before signing is so important.

Under the Contract, purchasers are entitled to attend the property at a reasonable time during the seven days before settlement, including settlement day.

9. Other useful things to know

Stamp duty
Stamp duty is payable on the purchase price. Calculators and concession information are available on the State Revenue Office website.

Land Titles Office fees
Registration fees apply and usually increase on 1 July each year. Additional fees apply if you are registering a mortgage.

Electronic settlement fees
Most transactions now involve electronic settlement, with fees currently around $140 for a single Title.

Purchaser details
Ensure your full legal name is correctly recorded on all documents.

Finance conditions
If you need a loan, make sure the Contract is subject to unconditional finance approval. Pre-approval is not the same as formal approval. A 21-day finance condition is usually appropriate.

Insurance before settlement
To protect yourself if the property is damaged before settlement and the vendor is under-insured, we recommend arranging your own insurance as soon as possible after signing.

Need advice before you sign?

A Contract of Sale is legally binding and can have long-term consequences. Getting advice before you sign can save you time, stress and money.

If you’re buying property in Victoria and want peace of mind, our friendly conveyancing team at Maddens Lawyers is here to help. Call us on 1800 815 228 or complete an online enquiry form and we'll be in touch.