What should I check in a Victorian contract of sale?
In Victoria the deal-specific details sit in the Particulars of Sale at the front of the contract: buyer and seller, the seller's agent, the deposit and due date, the price, goods sold with the land, and possession terms. Read it carefully and flag any inaccuracy before you sign.
- Deposit. Typically 5 to 10% (for off-the-plan it must not exceed 10%), held by the estate agent or the vendor's legal practitioner in a trust account. Failing to pay on schedule lets the seller terminate and keep it.
- GST and CGT withholding. Pay GST withholding to the ATO if the contract requires it. For contracts signed from 1 January 2025, foreign resident CGT withholding requires the buyer to withhold 15% of the price, with no minimum threshold, unless the seller provides a valid ATO clearance certificate. See foreign resident CGT withholding.
- Section 32 statement. Before you sign, the vendor must give you a Section 32 Vendor's Statement disclosing title, encumbrances, planning, outgoings, owners corporation and building permits from the last 7 years. If it is missing or materially wrong you may be able to withdraw. See what a seller must disclose.
How does the cooling-off period work in Victoria?
Victoria gives a 3 clear business day cooling-off period from the day you (the buyer) sign a private-sale contract. Withdraw in that window and you forfeit $100 or 0.2% of the price, whichever is greater. There is no cooling-off at auction, on the same day as a passed-in auction, within 3 clear business days either side of a public auction, or if you buy as a company.
What is 'deemed satisfaction' of finance and building conditions?
On finance and building and pest conditions, the Victorian mechanic is that silence loses the right: the standard contract gives you 2 clear business days after the loan approval date (finance) or 14 days from the day of sale (building and pest) to end the contract by written notice. Serve nothing inside the window and the contract continues as unconditional, so diarise every date and act in writing.
What are the key dates in a Victorian contract?
- Contract date / day of sale: starts the clock.
- Cooling-off expiry: 5pm on the 3rd clear business day (private sale only).
- Loan approval date and building and pest window: where those conditions apply, you have 2 clear business days after the approval date (finance) or 14 days from the day of sale (building and pest) to serve written notice, or the contract continues.
- Deposit and balance deposit due: as set in the Particulars of Sale.
- Settlement date: commonly 30, 60 or 90 days, set in the Particulars of Sale.
Default interest for late settlement is the penalty interest rate (currently 10% a year), and special conditions sometimes add a margin — check your contract. Missing settlement is generally not instantly fatal in Victoria: the non-defaulting party serves a written default notice giving at least 14 days to remedy before the contract can be ended.
Section 27 early release of the deposit is a statutory process: it can only happen once the contract is unconditional, the vendor has given particulars of any mortgages or caveats, and you have not objected within the 28-day window (no objection is deemed authorisation). And for almost all residential purchases, the seller cannot pass their land tax on to you at settlement.
See also the five things to check on any contract and complying with contract conditions in VIC.
General information only, not legal advice. Have your contract and Section 32 statement reviewed by a qualified Victorian conveyancer or lawyer before you sign.
