Three in four Victorian contracts arrive with the finance clause blank

That little empty box could be one of the most important things you check before you sign.

This is one of the most common assumptions we see.

The thinking goes something like this:

"I'll apply for the loan. If the bank approves me, great. If they don't, I'll just cancel the contract."

Sometimes a contract does give you that protection.

But the protection needs to be in the contract.

It doesn't appear simply because you're borrowing money.

That's the important distinction.

Finance isn't a protection you automatically get because you need a loan.

It's a protection that needs to be agreed and documented before you sign.

Because the contract is prepared for the property being sold — not specifically for your circumstances as a buyer.

The vendor's solicitor prepares the contract and isn't responsible for adding conditions that protect the buyer from risks specific to the buyer.

If you need finance, that's something you need to raise and negotiate.

And that's where the problem starts.

A blank box doesn't feel like a decision.

It feels like nothing.

You're looking through dozens of pages. You've got an agent waiting for your answer. You've probably already fallen in love with the house.

It's very easy to skim straight past it.

But sometimes the most important part of a contract is the thing that isn't there.

This is where the distinction becomes serious.

If you've signed an unconditional contract and then can't complete the purchase, you may be in default.

The consequences depend on the circumstances and the terms of the contract, but can include:

A typical deposit is 10% of the purchase price.

On an $800,000 property, that's $80,000

If settlement doesn't occur when required, interest can become payable under the contract.

If the vendor suffers a loss because the contract can't be completed, there can be further claims depending on what happens next and the terms of the contract.

Finance isn't the only buyer protection that can be negotiated.

Building and pest conditions can also be included in a contract.

And the same principle applies.

If the contract doesn't give you a right to terminate based on an inspection, you shouldn't assume that discovering a major problem after signing gives you one.

That matters because buyers often think of these protections as something that comes with the property.

They don't.

They are terms of the deal.

And the time to discuss them is before you sign.

Victoria does have cooling-off rights for many private residential sales.

But cooling off isn't a substitute for a finance condition.

There are exceptions to when cooling off applies, including auctions and certain purchases made around a publicly advertised auction. There is also a statutory penalty for exercising the right.

Most importantly, the cooling-off period is short.

A finance application can easily take longer.

So if you need finance to buy the property, deal with the finance condition before signing rather than assuming cooling off will save you if the loan doesn't come through.

of the Victorian contracts we reviewed had the finance section blank

That doesn't mean three quarters of buyers made a mistake.

Some buyers may not need finance.

Some may negotiate a finance condition later.

Some may have other arrangements.

What the number does tell us is something simpler:

A blank finance section is normal.

And because it's normal, it's easy to overlook.

That's why we think it's worth checking every time.

You don't need to become a property lawyer.

You don't need to read every word of a 90-page contract.

But before you sign, you should know the answer to a few basic questions:

Those questions can take minutes to ask.

Unravelling a contract after you've signed it can be much harder.

That's why we believe the best time to review a contract isn't after you've decided to buy.

It's before you commit.

Send us your contract.

A Prepared property lawyer will review it the same day, for free, and explain what matters — including whether the contract is subject to finance and what you may want to ask for if it isn't.

Because the most important part of a contract isn't always what's written in it. Sometimes it's what's missing.