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One in four Victorian properties carries a restrictive covenant

lindel.enticott@prepared.com.au (Lindel Enticott) — Thu, 10 Sep 2026 02:07:21 GMT

From 1,358 Victorian contracts of sale

One in four Victorian properties carries a restrictive covenant

You can buy the house you love and still discover you can't do what you want with it.

26%

357 of the 1,358 contracts we reviewed carried a restrictive covenant.

The house has the backyard you've been looking for.

There's room for a pool.

The garage could become a home office.

You could extend out the back.

Maybe you want to build a second dwelling one day.

Then, after you've bought the property, your builder pulls the title and says:

“Have you seen the covenant?”

You haven't.

It was sitting in the contract all along.

We reviewed 1,358 Victorian contracts of sale and found a restrictive covenant in 357 of them — 26%.

That's roughly one in four properties.

And the surprising part isn't that covenants exist.

It's how often they can affect things buyers assume they'll be free to do with their own property.

What is a restrictive covenant?

In simple terms, a restrictive covenant is a rule attached to the land.

It might restrict what can be built, where it can be built, what materials can be used, how the land can be used, or what you can do with it.

The important thing is that the covenant belongs to the land, not the person who originally agreed to it.

So when you buy the property, the restriction can come with it.

It may have been created decades ago, when the land was first subdivided.

It may have been written when the neighbourhood looked completely different.

It may even contain wording that sounds bizarre today.

But if it still applies, its age doesn't necessarily make it irrelevant.

Here's the mistake buyers often make

They look at the property and ask

“What can I do with this house?”

The better question is

“What can I legally do with this land?”

Those aren't always the same thing.

The existing house might be perfectly compliant.

Your future plans might not be.

And that's where restrictive covenants can become expensive.

What we found in 1,358 contracts

Our lawyers identified restrictive covenants in 357 contracts.

Within those, we saw a surprisingly broad range of restrictions:

What the covenant did

Contracts

Standard restrictive covenant, with no breach disclosed

215

Restrictions on excavation or removal of earth, stone, clay, gravel or sand

Covenant applying through a Memorandum of Common Provisions

Older covenants containing historical restrictions

Modern estate covenant with detailed design requirements

Total contracts with a restrictive covenant

357 of 1,358

Some contracts contained more than one type of restriction, so the categories overlap.

The important number is 357.

One in four.

Three covenants we'd want a buyer to know about

Not all covenants are created equal.

Some may have virtually no impact on your plans.

Others can completely change what you can do with the property.

Three types particularly caught our attention.

Covenant 01

contracts restricting excavation or the removal of earth, stone, clay, gravel or sand

The covenant that could affect your excavation plans

We found 61 contracts containing older covenants restricting the excavation or removal of things such as earth, stone, clay, gravel or sand.

These are old restrictions.

Some date back to a very different era, when the concern may have been quarrying, brickmaking or other activities that aren't exactly common in today's suburbs.

But the wording doesn't automatically disappear just because the reason for creating it has disappeared.

And excavation is something modern homeowners do all the time.

A pool. A basement. Major landscaping. Cutting into a sloping block. Significant earthworks.

Suddenly, an old sentence written decades ago can become relevant to a very modern renovation.

What we'd want a buyer to know

If your plans involve digging, check the title before you buy.

Don't wait until you've paid for architectural drawings and your builder is ready to start.

Covenant 02

properties where restrictions applied through a Memorandum of Common Provisions

The covenant that's not actually written on the title

This one is particularly easy to miss.

We found 41 properties where restrictions applied through a Memorandum of Common Provisions.

The title may contain a reference to a document.

But the actual restrictions aren't necessarily spelled out there in full.

So you read the title.

You see the reference.

You move on.

And you may never discover what the document actually says.

These arrangements are particularly common in estates where the same restrictions apply across multiple properties.

They're perfectly capable of doing their job.

They're just not particularly good at announcing themselves to a buyer.

What we'd want a buyer to know

If the title points you to another document, read that document.

A reference number isn't an explanation.

Covenant 03

older covenants containing historical restrictions

The covenant that sounds ridiculous — but is still there

Some of the oldest covenants we encountered read like pieces of property history.

Restrictions referring to building values in pounds.
Bans on certain trades.
Restrictions relating to activities that haven't been common in a residential suburb for generations.

It's tempting to dismiss them as historical curiosities.

But a covenant doesn't necessarily stop mattering just because it sounds old-fashioned.

What we'd want a buyer to know

Don't judge a covenant by how strange it sounds.

Work out whether it still applies and whether it affects what you want to do.

Then there are the modern covenants

Older covenants aren't the only ones buyers need to understand.

We also found 12 contracts with modern estate-style covenants containing detailed design requirements.

These can regulate things such as:

the size and position of the house
setbacks
fence heights and materials
external finishes
the amount of brick required
what can be visible from the street
caravans and other vehicles
external plumbing
even where certain household items can be seen

In some ways, these are easier for a buyer to understand.

They're newer.

They're detailed.

And buyers purchasing in a new estate may expect some design rules.

But they can also regulate surprisingly ordinary decisions.

The fence you want to build.

The extension you're planning.

The materials you want to use.

The caravan you want to park at home.

A covenant doesn't have to stop you building a house to matter.

Sometimes it simply stops you building the house you want.

One dwelling can be the most important restriction of all

Some covenants restrict a property to one dwelling.

For a buyer who simply wants a family home, that might never matter.

For someone who eventually wants to:

subdivide
build a second dwelling
add a granny flat
redevelop the block

…it could be very important.

And this is why we don't think buyers should read a covenant in isolation.

Read it against your plans.

A restriction that's irrelevant today can become very important five years from now.

contracts disclosed an existing breach involving covenants, easements or other restrictions

Sixteen properties were already disclosed as being in breach

We also found 16 contracts that disclosed an existing breach involving covenants, easements or other restrictions.

That's a relatively small number.

But if you're the buyer of one of those properties, the percentage doesn't matter very much.

What matters is that you're potentially buying a property with an existing problem.

Before proceeding, you'd want to understand:

What is the breach?

Who is responsible for fixing it?

What would fixing it involve?

What happens if it isn't fixed?

This is exactly the sort of issue that deserves attention before an offer is made.

Know what you can do with the land before you buy the house.

Send us your contract.

A Prepared property lawyer will review it the same day, for free, and explain any covenants on the title, what they restrict, and whether they affect the plans you have for the property.

Send us your contract

How we found this

This analysis is based on 1,358 Victorian contracts of sale reviewed by Prepared property lawyers between February and August 2026, across metropolitan Melbourne.

A finding was counted where a qualified reviewer identified the issue and it appeared in the published contract review.

The figures represent covenants and restrictions disclosed in the contracts and associated documents reviewed by Prepared. Some contracts contained more than one type of restriction, so categories overlap and cannot be added together.

This analysis describes what appeared in the contracts reviewed and should not be taken as legal advice for a particular transaction.

The average Victorian contract of sale is now 92 pages

lindel.enticott@prepared.com.au (Lindel Enticott) — Thu, 10 Sep 2026 02:06:29 GMT

From 2,638 Victorian contract versions · February to August 2026

The average Victorian contract of sale is now 92 pages

We analysed 2,638 contract versions. The average was 92 pages, and it hasn't changed much since May.

pages

The agent sends through the contract.

You open it.

Ninety-odd pages.

There’s a moment familiar to anyone buying a property in Victoria.

You find the price. You find the settlement date. You scroll through the rest, trying to work out what actually matters.

Somewhere around page forty, you start reading faster. By page seventy, you’re mostly hoping there isn’t anything important you’ve missed.

So we measured them.

Across 2,638 Victorian contract versions, the average was 92 pages, adding up to 243,732 pages in total.

And it’s not just one unusually large batch. The monthly average has stayed between 88 and 98 pages every month since May.

That’s a lot of paper to put in front of someone who may have only a few days to make a decision.

2,638

contract versions analysed

243,732

pages in total

pages in the average contract

88–98

monthly average range since May

Where do all those pages come from?

A Victorian contract usually contains four main parts.

The contract itself.

The particulars of sale, the price, deposit, settlement date and the standard conditions that govern the transaction.

The special conditions.

Extra terms added to the standard contract for that particular sale.

The vendor statement, or Section 32.

Disclosures about the property, including planning, rates, building works, notices and owners corporation information.

The attachments.

Title documents, plans, certificates, permits, owners corporation records and other supporting documents.

This last part accounts for much of the bulk.

That isn't necessarily a bad thing.

More supporting documents generally mean more information is available to a buyer. The problem is that more information also makes it harder to see what matters.

If you only have time to check four things

You don't need to treat page 1 and page 92 as equally important.

These are four places we'd want a buyer to look first.

The particulars of sale

Check the price, deposit, settlement date and exactly what's included with the property.

The goods and chattels list is easy to overlook.

If there's a dishwasher, wall-mounted TV or other item you expect to stay, check that it's actually included in the contract.

The finance and inspection conditions

Check whether the finance and building inspection conditions have actually been completed.

3 in 4

In three out of four contracts we reviewed, the finance clause was blank.

A blank finance clause isn't simply something to fill in later. Depending on the circumstances, it can mean the purchase isn't conditional on you obtaining finance.

That's one small section of one page that can have a very large financial consequence.

The special conditions

This is where the standard contract is changed or supplemented for the particular sale.

It's often one of the shortest sections, but it can materially change your position as a buyer.

Almost every contract we reviewed contained a due diligence or buyer-beware provision.

It's also where you'll often find additional terms about things like default, settlement or the condition of the property.

Short doesn't mean unimportant.

The title, encumbrances and building works disclosures

These tell you more about the property itself, and what may affect what you can do with it once you own it.

1 in 4

A restrictive covenant appeared in one in four contracts we reviewed.

~1 in 11

Almost one in eleven disclosed building works where no building permit was identified.

These aren't necessarily problems with the property. But they are things a buyer needs to understand before making an offer.

The contract you read may not be the contract you sign

Roughly one in six contracts was amended after it was first issued

There's another reason not to rely on the first version you receive.

In July, we analysed 685 contract versions across 589 contracts.

That means roughly one in six contracts was amended after it was first issued.

Amendments are normal. Many are minor.

But if you're looking at a contract on Tuesday and signing on Saturday, don't assume it's unchanged.

If a new version arrives, check what changed.

What we'd want a buyer to know

The problem isn't really that Victorian contracts are 92 pages long. The problem is that 92 pages can make every paragraph look equally important.

They're not.

One paragraph might simply confirm a rates amount. Another might affect whether you can rely on finance. Another might restrict what you can build on the property.

The document doesn't always tell you which is which.

That's why the goal shouldn't be to read 92 pages as quickly as possible.

It should be to understand which parts could materially affect your decision before you commit to the property.

And timing matters.

Before you make an offer, you can ask questions, negotiate terms or walk away.

After you've signed, your options can be very different.

Ninety-two pages. One afternoon. Free.

A Prepared property lawyer reads the contract in full and sends you back the parts that matter, ranked, the same day.

Send us your contract

Method

Based on 2,638 Victorian contract versions analysed by Prepared between February and August 2026, totalling 243,732 pages, across metropolitan Melbourne.

Clause-level findings are drawn from the 1,358 contracts that received a published legal review.

Page counts include all attachments bundled into the contract as issued.

1 in 11 homes we reviewed had building works with no permit

lindel.enticott@prepared.com.au (Lindel Enticott) — Thu, 10 Sep 2026 02:05:27 GMT

From 330 Victorian contracts of sale · August 2026

One in eleven homes we reviewed had building works with no permit

The deck looks great. The garage conversion makes perfect sense. The extension is exactly what you wanted.

Then you read the contract.

No building permit.

That is when a building project that belonged to the previous owner can become something you need to deal with.

31 of 330 contracts — almost one in eleven

In August 2026, Prepared lawyers reviewed 330 Victorian contracts of sale.

31 of them, almost one in eleven, disclosed building works where the required permit wasn't in place.

The works ranged from decks and pergolas to extensions, carport enclosures and converted garages.

Most looked like perfectly ordinary parts of a home.

It’s a small detail that can make a big difference.

The house can look finished. The paperwork might not be.

When you're inspecting a property, you're looking at what is there.

A new deck. A covered entertaining area. An extra bedroom. A converted garage. A renovated extension.

You don't necessarily see the building permit sitting behind it.

And you shouldn't have to be a building surveyor to know what questions to ask.

That's where the contract matters.

The Section 32 and other contract documents can reveal building work that isn't obvious from simply walking through the property.

In our August sample, the contracts disclosed:

What the vendor disclosed

Contracts

Owner-builder works without the required permit - lower value or value not stated

Owner-builder works without the required permit - high-value or structural

Works disclosed as a material fact that were carried out without a permit

The same issue on a property under an owners corporation

Planning permit disclosed without the corresponding building permit

Distinct contracts affected

31 of 330

Some contracts contained more than one issue.

The important point isn't the exact category. It's that the issue appeared in almost one in eleven contracts we reviewed.

Why should a buyer care?

Because building work doesn't become someone else's problem simply because someone else built it.

If you buy a property with an unapproved structure, you become the owner of that structure.

That doesn't necessarily mean you have to demolish it.

It doesn't mean the property is automatically unsafe.

And it doesn't mean the vendor has done something wrong.

But it does mean you need to understand what was built, when it was built, what approvals were required, and what paperwork exists.

The earlier you find that out, the more choices you have.

The owner-builder connection

of 31

contracts involved owner-builder works

Of the 31 contracts we identified, 27 involved owner-builder works.

That makes sense.

Owner-builder projects are a common source of building work that requires closer attention to permits and documentation.

A previous owner may have built or substantially altered part of the property themselves.

Perhaps they added an extension.

Perhaps they enclosed a carport.

Perhaps they built a substantial deck.

Perhaps they converted an area of the house into something else.

Years later, you see a finished room.

The contract may tell a very different story.

What we'd want a buyer to know

Don't just ask, "Was it built properly?"

Ask:

"What approvals were required, and can I see them?"

Those are two different questions.

of the 31 disclosed high-value or structural works without the expected permit

Seven of the 31 were high-value or structural

This is where the numbers become particularly interesting.

Of the 31 contracts, seven disclosed high-value or structural works without the expected permit.

These included things such as major extensions, structural work, slabs and significant roofing work.

These aren't cosmetic changes.

They're the sorts of projects where understanding the approval history matters.

If you're buying a house because you love the large extension at the back, you want to know more than whether the extension looks good.

You want to know whether the paperwork supports what you're buying.

The risk often appears later

The deck doesn't collapse.

The council doesn't send a letter.

Nobody complains.

The house changes hands.

One of the frustrating things about unpermitted work is that nothing may happen for years.

Then, years later, the issue can surface when the owner:

applies for another permit
wants to renovate
tries to sell
has a dispute with a neighbour
needs to establish the history of the property
deals with an insurer or other third party

By then, the person who did the work may be long gone.

You own the property.

That's why the best time to investigate building work is before you buy it.

The four places we keep seeing

There are a few types of building work that deserve an extra look.

Decks

Particularly raised decks and decks with roofs or other substantial structures attached.

Pergolas and verandahs

Especially where they're attached to the dwelling or form part of a larger extension.

Carports and garages

An enclosed carport can look like a perfectly normal room from inside the house.

But enclosing it can involve more than putting up a few walls.

Garage and outbuilding conversions

A converted garage can make an attractive extra bedroom, office or living area.

But there's a difference between a room that looks like a bedroom and a room that was approved to be used as one.

That distinction matters.

What should you actually look for?

You don't need to become an expert in Victorian building regulations.

Start with the paperwork.

1

Read the building disclosures

Look at the relevant building permit and owner-builder disclosures in the Section 32 and contract documents.

Don't just look for a yes or no. Read the details.
2

Compare the paperwork with the property

Walk through the house and ask yourself: Does what I'm seeing match what's been disclosed?

If there's an obvious extension, deck or conversion that doesn't appear anywhere in the paperwork, that's worth asking about.
3

Check the attachments

A contract may refer to a certificate, report or other document. Make sure the document is actually there.

We've seen contracts where an important disclosure refers to an attachment that wasn't included with the documents provided for review.
4

Ask who did the work

Was it an owner-builder? A registered builder? When was it completed? What was done? What did it cost?

Those details can change what documentation should exist.
5

Ask your building inspector to look specifically at it

A building inspection and a legal contract review do different jobs.

Tell the inspector about any disclosed works so they can pay particular attention to them.
6

Get the contract reviewed before you commit

This is the key point.

Building problems are expensive to discover after settlement.

Contract problems are much easier to deal with while you're still deciding whether to buy.

What if the contract says nothing?

This is where buyers need to be careful.

If the contract doesn't disclose building work, that doesn't necessarily mean there isn't any.

It may simply mean there is nothing to disclose.

But if you walk into the property and see a brand-new-looking extension, a converted garage or a substantial deck that clearly wasn't part of the original house, the absence of a disclosure is worth investigating.

A contradiction is a question.

And questions are much easier to ask before you've signed than after you've bought the property.

Don't confuse "unpermitted" with "unsafe"

This is an important distinction.

A missing permit does not automatically tell you whether the building work is structurally sound.

Likewise, a permit doesn't automatically guarantee that every aspect of a building is perfect.

They're different questions.

A contract review can identify what the documents say and what appears unusual.

A building inspection can assess the physical condition of the property.

You may need both.

The bigger lesson

The interesting thing about these 31 properties isn't that something went wrong. It's that the contract gave the buyer a chance to find out about it.

That's the part worth remembering.

When you're buying a house, you're not just buying the kitchen you can see.

You're buying the extension behind it.
The deck.
The garage.
The retaining walls.
The alterations.
The history of the property.

And sometimes, you're buying a problem that was created years before you ever heard of the place.

Your advantage is finding that out while you still have a choice.

One in eleven. But the real number may be higher.

9.4%

31 of 330 contracts — just under one in eleven

Our August sample found 31 affected contracts out of 330.

That's 9.4% — just under one in eleven.

But there's an important limitation.

Our figures are based on what was disclosed in the contracts we reviewed.

If building work wasn't disclosed, it doesn't appear in this dataset.

So this isn't a measure of how many Victorian homes actually contain unpermitted work.

It's a measure of how often our lawyers found the issue disclosed in the contracts presented to them.

That distinction matters.

And it's exactly why comparing the paperwork with what you can actually see is so important.

What we'd do if we were buying the house

If we walked into a property and saw substantial building work, we'd want three things before signing:

The approval history.

The supporting documents.

A clear understanding of what happens if something isn't right.

Not because every unpermitted structure is a disaster.

Because you shouldn't buy uncertainty when you can investigate it first.

See what's hiding in your contract.

Before you buy the house, understand the paperwork behind it.

Send us your contract and a Prepared property lawyer will review it the same day, for free.

We'll identify the building work that's been disclosed, explain what it means and tell you what questions are worth asking before you commit.

Because it's much easier to investigate someone else's renovation before you own it.

Send us your contract

How we found this

Prepared lawyers reviewed 330 Victorian contracts of sale between 1 and 26 August 2026, across metropolitan Melbourne.

A finding was counted where a qualified reviewer identified the issue and it appeared in the published contract review.

The figures represent building work disclosed by vendors in the contracts and associated documents reviewed by Prepared. Undisclosed work is not captured by this analysis.

Some contracts contained more than one category of building work, so the categories cannot be added together to determine the total number of affected contracts.

This analysis is based on a single month's sample and should not be treated as a representative measure of all Victorian properties.

Three in four Victorian contracts arrive with the finance clause blank

lindel.enticott@prepared.com.au (Lindel Enticott) — Thu, 10 Sep 2026 02:04:45 GMT

From 1,358 Victorian contracts of sale

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.

General condition — Loan

Lender

Loan amount

Approval date

75%

of contracts left this section blank
1,014 of 1,358

You find the property.

You make the offer.

The agent sends you the contract.

It's about 90 pages long, most of it written in legal language, and somewhere in there is a small section asking about your finance.

It's blank.

You probably don't think much of it.

But you should.

We reviewed 1,358 Victorian contracts of sale and found the finance section was blank in 1,014 of them 75%.

That's three out of every four contracts.

Here's the part that catches buyers out:

A blank finance clause doesn't mean the contract is automatically subject to your loan being approved.

If the contract isn't subject to finance and your lender later says no, you may still be legally committed to complete the purchase.

That's a very different position from the one many buyers think they're in.

"But surely I can get out if the bank says no?"

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.

What does the finance clause actually do?

The finance section of a Victorian contract is where the parties can set out the terms of the buyer's finance condition.

Depending on the contract, this can include things such as:

the lender
the amount of finance required
the date by which finance must be approved

When a properly drafted finance condition applies, it can give the buyer a right to end the contract if finance isn't approved by the required date, subject to the terms and notice requirements of the condition.

If the finance condition isn't included, you shouldn't assume you have that protection.

Here's the simplest way to think about it

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.

Why are so many contracts blank?

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.

What happens if your loan falls through?

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:

Your deposit may be at risk

A typical deposit is 10% of the purchase price.

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

Interest may start running

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

You may face further financial consequences

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.

So the question isn't really:

"Should I have a finance clause?"

It's:

"Do I understand what happens if my finance isn't approved?"

There's another clause buyers often overlook

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.

The five-minute check we'd recommend

Before signing a contract, find the finance section and ask yourself five questions.

1

Is there actually a finance condition?

Don't assume. Look for it.
2

What does it require?

Check the lender, loan amount, approval date and any other requirements.
3

Is the timeframe realistic?

Talk to your broker or lender about how long approval is likely to take.
4

What do I have to do?

Some finance conditions require you to make the application promptly and give notice within a particular timeframe if finance isn't approved.

Missing a notice deadline can matter.
5

What happens if finance is declined?

This is the question that matters most.

You want to understand your position before you sign — not after the bank calls.

Don't rely on cooling off as your finance strategy

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.

The important thing about a blank clause

A blank finance clause isn't necessarily a mistake.

And it doesn't mean the vendor is doing anything wrong.

It means the contract, as you've been given it, doesn't necessarily contain the protection you may need.

That's a very different thing.

The vendor is selling a property.

You are deciding whether to buy it, how much to pay and what conditions you need before committing.

Those are two different interests.

Your job as the buyer is to make sure the contract reflects the deal you're actually willing to make.

What our 1,358 contracts tell us

75%

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.

Before you sign, stop for five minutes

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:

What happens if my finance isn't approved?
What happens if the building inspection finds something serious?
Are there restrictions on what I can do with the property?
Is there anything unusual in the special conditions?
And is there anything I'd want to negotiate before I commit?

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.

Before you sign, know what you're signing.

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.

Send us your contract

How we found this

We reviewed 1,358 Victorian contracts of sale reviewed by Prepared lawyers between February and August 2026 across metropolitan Melbourne.

The contracts were assessed at the point they were initially provided for review, before any subsequent negotiation between the parties. The figures therefore describe the contract a buyer was initially presented with, rather than necessarily the final contract eventually signed.

The finance section was counted as blank where the relevant finance details and condition had not been completed.

This analysis describes what appeared in the contracts reviewed by Prepared and should not be taken as legal advice for a particular transaction.

Victorian Contracts Analysis

lindel.enticott@prepared.com.au (Lindel Enticott) — Thu, 10 Sep 2026 02:03:25 GMT

Victorian contract analysis · February to August 2026

We’ve read more than 266,000 pages of Victorian property contracts. Here’s what we found.

1,358

contracts of sale reviewed

266,000+

pages read

~90

legal topics assessed per contract

pages in the average contract

1,358 contracts. More than 266,000 pages. Thousands of clauses. And some surprisingly common risks.

Most buyers only read a contract when they're ready to buy.

By then, they’re often standing in an agent’s office, bidding against other people, or staring at a deadline to sign.

That’s not the best time to discover that the property has a restrictive covenant, the finance clause is blank, or the renovation out the back may never have had the right permit.

So, we decided to look at the contracts themselves.

Between February and August 2026, Prepared property lawyers reviewed 1,358 Victorian contracts of sale, assessing each one across roughly 90 legal topics.

Not what could be in a Victorian contract, but what was actually there.

And some of the results challenge the way buyers think about contracts.

The first surprise: the "standard" contract isn't necessarily standard

A Victorian contract of sale can look like an intimidating stack of paper.

Our sample averaged around 92 pages.

That's a lot to ask a buyer to read, particularly when you're also inspecting the property, organising finance, comparing prices and trying to work out whether you want to live there.

But here's the important part: You don't need to understand every word on every page.

You do need to know which parts could change your decision to buy.

After reviewing thousands of contracts, we see the same themes come up again and again.

Here are five that you should know about.

pages

Finding 01

75%

of contracts had a blank finance clause

Three in four contracts had a blank finance clause

75% of the contracts we reviewed had standard finance conditions available to opt in, but left blank.

This is one of the easiest things for a buyer to misunderstand.

A buyer may think:

"I'll need finance, so obviously the contract is subject to finance."

Not necessarily.

The finance condition needs to be included in the contract correctly.

If it isn't, getting your loan approved can become your problem, rather than a condition of the purchase.

And the timing matters.

A buyer who discovers this before signing can potentially fix it.

A buyer who discovers it after signing may have very different options.

What we'd want a buyer to know

Never assume the contract protects you simply because you need finance.

Check the finance condition before you make your offer or sign.

It's a small section of the contract that can have a very big consequence.

Finding 02

1 in 11

properties had building work without the expected permits

One in eleven properties had building work without the expected permits

9% of the contracts disclosed building works where the appropriate building permit wasn't in place.

Think about what that means in the real world.

You inspect the house. The extension looks great. The deck is finished. There's a converted garage, a new bathroom or a renovated kitchen.

Nothing looks unusual.

Then you discover the paperwork doesn't quite match the building.

This doesn't automatically mean the property is a bad purchase.

But it does mean you need to understand what happened, what approvals exist, and what responsibility may fall to you as the new owner.

What we'd want a buyer to know

A problem with previous building work doesn't necessarily stay with the previous owner.

Some obligations and risks can follow the property to you.

That's why building approvals are something worth investigating before you become the owner, rather than after your builder discovers something during your renovation.

Finding 03

26%

of properties had a restrictive covenant

One in four properties had a restrictive covenant

26% of the contracts contained a restrictive covenant.

A restrictive covenant is essentially a rule attached to the land.

It can restrict what you can do with the property, including certain types of development or construction.

That's where something that sounds like boring legal language can become very relevant to your plans.

Want to build a pool? Extend the house? Change the layout? Build something closer to a boundary?

A covenant could affect what is possible.

In our review, 61 contracts included covenants prohibiting excavation.

For a buyer dreaming about a pool, that isn't just a footnote.

It's potentially a dealbreaker.

What we'd want a buyer to know

Don't ask only whether you like the house. Ask whether the title lets you use it the way you want.

The contract tells you what you're buying.

The title can tell you what you may and may not be able to do with it.

Finding 04

58%

of contracts disclosed an easement

27%

disclosed an implied easement not registered on the title

Easements are common.
Some aren't obvious from the title.

58% of the contracts we reviewed disclosed an easement.

That isn't particularly surprising.

Easements are common in residential property. They can allow things such as drainage, sewerage or other services to run through land.

The more interesting finding was this:

27% of the contracts disclosed an implied easement that wasn't registered as an ordinary dealing on the title.

This is where a buyer can get caught by a very reasonable assumption:

"I've looked at the title. There's nothing there. We're fine."

Not necessarily.

Other documents and searches can reveal information about infrastructure or rights affecting the property that aren't immediately obvious from the title itself.

What we'd want a buyer to know

The title is important. But it's not always the whole story.

When you're buying property, the right question isn't simply:

"What does the title say?"

It's:

"What rights, restrictions and infrastructure could affect this land?"

Finding 05

pages in the average contract. You probably need to focus on four.

The contract may be 92 pages.
You probably need to focus on four.

Across our sample, we analysed 243,732 pages across 2,638 contract versions, averaging about 92 pages per contract.

Nobody wants to spend their Saturday night reading 92 pages of legal clauses.

Infact, most buyers shouldn't have to.

The trick isn't reading everything equally.

It's knowing where the important stuff is hiding.

Depending on the property, that might include:

the finance condition
the special conditions
the title and plan
restrictive covenants
easements
building and planning information
owners corporation obligations
settlement conditions
vendor disclosures

The exact combination changes from property to property.

That's why a good contract review isn't simply someone telling you that the contract is "standard".

What we'd want a buyer to know

The value isn't in reading every page. It's in knowing which pages matter to you.

What surprised us most

The biggest risk isn't something unusual. It's something ordinary you didn't recognise.

None of these findings are particularly exotic.

That's actually the point.

A restrictive covenant isn't some once-in-a-lifetime legal oddity.

Neither is an easement.

Neither is a blank finance clause.

These things appeared frequently in the contracts we reviewed.

Which means the biggest risk for a buyer isn't necessarily encountering something unusual.

It's encountering something completely ordinary without realising what it means.

That's an important distinction.

The same clause can mean something very different to different buyers

Consider a restrictive covenant.

For one buyer, it might make no difference whatsoever.

For another, it could prevent the extension they've been planning for years.

The same goes for an easement.

For one property, it might be little more than something to be aware of.

For another, its location could affect where you can build.

Or take the finance clause.

A cash buyer may not care.

A buyer relying on a loan absolutely should.

That's why we don't think a useful contract review should simply produce a long list of legal observations.

The real question is: "What does this mean for you?"

The biggest advantage a buyer has is timing

There's a pattern behind almost every issue we've identified.

The earlier you know, the more options you have.

Find a covenant before making an offer?

You can investigate it.

Find an unexpected building issue before signing?

You can ask questions.

Find a problem with the finance condition before committing?

You can address it.

Find the same problem after settlement?

Your options can look very different.

That's why we believe a contract shouldn't be treated as paperwork you deal with once you've decided to buy.

The contract is part of deciding whether you should buy in the first place.

So, what should a buyer actually do?

Before you offer or sign, ask five simple questions:

1

Can I get out if my finance isn't approved?

Don't assume. Check the finance condition.
2

Can I use the property the way I intend to?

Look for covenants, easements, planning restrictions and other limitations.
3

Does the paperwork match what I can see?

Extensions, decks, garages, renovations and other works may need further investigation.
4

Is there anything unusual hiding in the special conditions?

This is often where important property-specific terms appear.
5

What would a property lawyer be concerned about?

You don't need to become a lawyer.

You just need to know what deserves a closer look before you commit.

What we learned from 1,358 contracts

After reading more than 266,000 pages of Victorian property contracts, our biggest takeaway isn't that contracts are full of problems.

It's that buyers are being asked to make very expensive decisions using documents they aren't expected to understand.

And that's backwards.

You shouldn't need to know what every legal clause means.

But before you spend hundreds of thousands, or millions on a property, you deserve to know:

What's unusual?
What could affect you?
What should you ask the vendor about?
What could you negotiate?
And is there anything here that should make you stop before signing?

That's what a contract review should help you answer.

Want to know what's in your contract?

You don't need to read 90 pages of legal language to work out what matters.

Send us the contract.

A Prepared property lawyer will review it and give you a clear explanation of the important risks, unusual clauses and things worth understanding before you offer or sign.

Because knowing what you're buying shouldn't be the hard part.

Send us your contract

About the data

This analysis is based on 1,358 Victorian contracts of sale reviewed by Prepared property lawyers between February and August 2026.

The properties are located across metropolitan Melbourne, with the sample weighted towards Melbourne's eastern and north-eastern suburbs. The sample should not be treated as representative of regional Victoria or other Australian states.

Each contract was assessed against approximately 90 legal topics using Prepared's structured review process.

A finding was counted where a qualified reviewer identified the issue and it appeared in the published review.

The figures represent information disclosed in the contracts and associated documents reviewed by Prepared. They do not represent an independent physical inspection of the properties.

Categories overlap, meaning a single contract may appear in multiple categories.

We'll update this analysis quarterly as our dataset grows.

What to check before you make an offer (Victoria)

lindel.enticott@prepared.com.au (Lindel Enticott) — Fri, 14 Aug 2026 07:03:42 GMT

The short answer

Before making an offer on a Victorian property, check six things first: whether it's a private sale or auction, what the Contract of Sale and Section 32 actually say, what the special conditions do, the owners corporation position if it's an apartment or townhouse, whether the settlement period suits you, and exactly what's included in the sale. All six are knowable before you offer.

Check 1 of 6

Is it a private sale or an auction?

Everything else follows from this.

At a private sale you may get three clear business days to cool off, and you can make conditional offers, like subject to finance or building and pest.

At auction you get none of that. The hammer falls and you're committed, no cooling-off, no finance clause, no building and pest condition unless the vendor offered one.

Ask the agent which it is, and whether that could change. Properties get sold before auction, and a private sale can be converted to auction.

More on timing: when should you get the contract reviewed?

Check 2 of 6

Have you actually read the Contract and Section 32?

The open inspection shows you the property. The Contract of Sale and Section 32 explain what comes with it.

In Victoria the vendor must give you a Section 32 Vendor Statement before you sign. It's a disclosure document with a range of mandatory disclosures. Some of the items it must cover:

Title - the vendor's estate and legal right to sell
Easements, covenants and restrictions - and whether they've been complied with or breached
Planning and zoning - including overlays and bushfire designations
Outgoings and rates - council, water, land tax, owners corporation levies
Unconnected services - electricity, telephone, water, gas, sewerage
Owners corporation details, if applicable. Whether there is common property, the rules affecting lot owners, any insurance, and much more for active owners corporations, including the fees and the minutes from their last meeting
Notices and orders from authorities - proposed roadworks, fencing notices from neighbours, building non-compliance
Certain insurance policies - if risk is passing to you before settlement, or if the seller did certain owner-builder works over $20,000
Material facts that might influence a buyer's decision prior flooding, serious defects

A Section 32 being provided doesn't mean someone has checked it. It's the vendor's disclosure, prepared by the vendor's side. Your lawyer might find the disclosure to be incomplete, out of date, or inconsistent with the title search. Make a contract review part of your due diligence.

Some certificates behind a vendor statement can take up to 10 business days to obtain. If the agent says the Section 32 isn't ready yet, that's probably why — and it's a reason to have your lawyer ready to act fast when it becomes available.

Check 3 of 6

What do the special conditions actually do?

General conditions are largely standard. Special conditions are where the risk moves.

They can:

Shift obligations onto you that would normally sit with the vendor
Remove protections most buyers assume they have
Introduce costs that aren't in the price
Change what happens if something goes wrong before settlement

Conditions are changed regularly and there's no mandatory contract, which is exactly the problem. Two contracts on the same street can be completely different documents.

What to do: line up a professional contract review. Someone who understands what every condition is saying, and whether it's standard.

Check 4 of 6

Apartment or townhouse? Check the owners corporation

This is where the costs live that don't appear in the asking price.

Look for:

Regular fees
Special levies - current, or expected soon
Any long-term maintenance fund and balance - without savings, capital expenses need extra levies
Known defects, particularly cladding, waterproofing and structural issues
Insurance - what's covered, what the excess is and who pays it
Rules and restrictions - pets, short stays, renovations, parking

Owners corporation fees are an ongoing cost for as long as you own the property. A $4,000 annual fee is roughly $80,000 over twenty years, before any increase.

Your lawyer will guide you on what the seller must disclose, and look for missing insurance, rules or disclosures.

Check 5 of 6

Does the settlement period work for you?

A 30, 60 or 90 day settlement isn't an administrative detail. It sets your deadlines.

Check it against:

Your finance timeline - is it enough time for your bank?
Your current lease or sale - will you be paying for two places, or neither?
Moving, schools, work - the practical side

Settlement is negotiable before you sign, and very difficult afterwards. If the vendor wants 30 days and your finance realistically needs 60, that's a conversation to have now.

Check 6 of 6

What's actually included?

Fixtures, fittings and appliances aren't automatically part of the sale.

Usually the permanent fixtures and fittings stay and movable items go. But each contract is different.

Some things are clearly fixed and permanent, and others aren't always clear. Ask whether a dishwasher or a fridge is integrated or freestanding and you can get different opinions.

The dishwasher you saw at the inspection, the cubby, the pizza oven — if it matters to you, confirm it's listed in the contract. Not mentioned by the agent. Listed in the contract.

Check the inclusions and exclusions
Compare it against what you remember from the inspection
If in doubt, list it

Included doesn't mean it works well. Inspect the appliances and fixtures before you buy.

The check most buyers skip

Can you use the property the way you intend to?

Restrictions on title, easements, covenants and planning controls all affect what you can do with land. If you're planning to renovate, extend, subdivide, build a granny flat or run a business from home, that intention needs testing against the contract before you offer.

An easement across the back third of a block doesn't stop you buying. It might stop you building.

And the one people underestimate

Have you budgeted for the full cost of ownership?

Beyond the purchase price and stamp duty:

Ongoing costs of property ownership in Victoria beyond the purchase price and government charges
Cost	Notes
Council rates	Annually at settlement
Water charges	Service charges plus usage
Owners corporation fees	Instalments differ with each manager
Land tax	Main residence exemptions may apply
Building insurance	Usually required by your lender before settlement
Maintenance	The cost that doesn't appear on any statement

Holding costs add up quickly, and they're the ones that turn an affordable purchase into a stretched one.

The short version

Before you offer:

Confirm the sale method - private sale or auction
Get the Contract of Sale and Section 32 reviewed
Understand every special condition - arm yourself to negotiate
Understand the owners corporation - fees, rules and current situation
Test the seller's preferred settlement period - against finance and your circumstances
Confirm the inclusions - in writing, in the contract

All six are answerable before you commit. None of them are answerable afterwards.

Common questions

What should I check before making an offer on a house in Victoria?

Six things: whether it's a private sale or auction, what the Contract of Sale and Section 32 say, what the special conditions do, the owners corporation position, whether the settlement period suits your finance and circumstances, and exactly what's included in the sale.

Can I ask for the Section 32 before making an offer?

Yes, absolutely. The vendor must provide it before you sign, and the selling agent can usually give it to you as soon as the property is listed. You don't need to be the successful buyer to request it.

What are special conditions in a contract of sale?

Additional clauses beyond the standard general conditions. They can shift risk onto the buyer, remove protections buyers commonly assume, or introduce extra costs. There's no standard set, so they need reading individually on every contract.

What should I check in the owners corporation documents?

Annual fees and their trends, current or foreshadowed special levies, any maintenance fund balance, known defects including cladding, insurance and outstanding claims, and the rules on pets, renovations, parking and short stays. Get your lawyer to check for proper disclosure and risks.

Does a Section 32 mean the property has been checked?

No. It's the vendor's disclosure document, prepared by the vendor's side. Your lawyer might find it to be incomplete, out of date or inconsistent with the title search. Understanding the disclosures is part of the buyer's due diligence.

Can I negotiate the settlement period?

Yes, before you sign. Settlement terms are negotiable as part of the offer and very difficult to change afterwards.

Prepared Prime

Six checks is a lot to do yourself

Most of it sits in documents written by the vendor's side, in language designed for lawyers rather than buyers. That is not a reason to skip it. It is a reason to have someone read it who does this every day.

Prepared Prime gives you unlimited contract reviews while you are house-hunting, each prepared by a qualified property lawyer and back within 4 business hours. Every review covers the checks above: risks flagged, clauses translated, next steps set out.

Normally $49 a review. Free for your first 90 days, and the clock does not start until your first review.

Start your free 90 days →

Next: how to choose a conveyancer or property lawyer →

General information only, not legal advice for your specific circumstances.

On this page

1. Private sale or auction 2. The Contract and Section 32 3. Special conditions 4. Owners corporation 5. Settlement period 6. What's included The check most buyers skip Full cost of ownership The short version Common questions

When Should You Get the Contract Reviewed? (Victoria)

lindel.enticott@prepared.com.au (Lindel Enticott) — Fri, 14 Aug 2026 06:52:02 GMT

On this page

Private sale or auction? Private sale: review before you offer Auction: review before auction day What cooling-off costs The expensive version What a review should tell you So when should you start? FAQ

The short answer

Get the Contract of Sale and Section 32 reviewed before you make an offer or bid, not after. At a private sale in Victoria, you might benefit from a cooling-off period but using it will cost you. At auction there is no cooling-off period at all: when the hammer falls, if you're the successful bidder you'll be signing an unconditional contract with no exit clause.

Private sale or auction?
The timing is completely different

Factor	Private sale	Auction
Review the contract	Before you make an offer	Before auction day
Cooling-off period	Where applicable, 3 clear business days after you sign	None
When you're committed	Once contracts are signed by both buyer and seller, subject to cooling-off or other conditions	The moment the hammer falls
Finance clause available?	Yes, if negotiated before signing	No
Can you negotiate terms?	Yes, that's the point of reviewing first	Unconditional deals, most terms are fixed. Negotiate any contract changes before the auction
Cost of getting it wrong	A penalty applies if you cool off. Your full deposit on the line if cooling off or other conditions don't apply or have expired	Your full deposit at risk

→ At a private sale, reviewing early buys you leverage.
→ At auction, reviewing early is the only protection you get.

Private sale: review before you offer

Reviewing before you offer is not just about catching problems. It also gives you something to negotiate with.

Once signed, every change needs the vendor to agree. Before you sign, the terms are still open. A review done at the right moment gives you:

Finance clause guidance

How to get this safety net, and what you must do, when

Building and pest conditions explained

These conditions are often changed or non-standard, check what applies

Offer guidance

What's included?

Deposit and settlement date guidance

Vacant possession or lease scrutinised

Special conditions explained

The ones that shift risk to you, removed or reworded before you are bound

Sign first and you're negotiating from behind, with a deposit already down.

Auction: review before auction day

If you're the successful bidder, you're committed immediately. No cooling-off. No finance clause or building and pest conditions.

That means everything you need to know has to be known before you raise your hand.

If your finance isn't approved, if you haven't read the owners corporation position, if you don't know what the special conditions do, bidding is the point of no return.

For private sales: what cooling-off actually gives you, and what it costs

Cooling-off is a safety net, not a strategy. Three things worth knowing:

It starts when you sign, not when the seller co-signs. This means you might be given your exchanged contract on the same day the cooling-off period ends. You may have very little time to arrange a professional review after exchange.
It costs money to use. A penalty applies, 0.2% of the purchase price, so it's a cost, not a clean exit.
It doesn't always apply. Don't assume you'll get the protection without checking.
- It doesn't apply if you sign at auction, or within three clear business days before or after a publicly advertised auction
- Some buyers won't get one, including companies and estate agents
- Some deals aren't eligible, including industrial, commercial and certain farming property, or where this isn't your first contract for this property

More to the point: cooling off means walking away from a property you wanted, after you'd already decided you wanted it. Reviewing first means never being in that position.

Why “I'll get it checked if my offer is accepted” is the expensive version

It's the most common approach and it's backwards.

By the time your offer is accepted you've committed emotionally, you've probably told people, and you've stopped looking at anything else. That's the worst possible moment to discover an easement across the back third of the block, or owners corporation levies you hadn't budgeted for, or a special condition that removes a protection you assumed you had.

You've already shown your cards, the price, to the agent. Negotiating after you've signed is challenging and the seller may call your bluff. Then you'll either accept the issue, or you'll pull out and start again, having lost weeks.

Don't wait until you've found the one before looking at the contract. The buyers who move with confidence usually did their legal homework before everyone else did.

What a review should tell you before you offer

A contract review earns its place if it answers these, in plain English:

What exactly are you buying? What's included, what's excluded, what's on title
When do you become legally bound? Cooling-off, finance conditions, auction rules
What does the fine print do? Special conditions that shift risk or add cost
Can you use the property the way you intend? Easements, covenants, planning controls, overlays
What will it actually cost to own? Council rates, water, owners corporation fees, holding costs
What should you ask the agent before you commit?

If a review gives you a summary but not a decision, it hasn't done its job.

So when should you start?

Earlier than most people do.

Inspect

→

Review

→

Offer

→

Sign

→

Settle

→

Keys

Most buyers spend months searching and days deciding. The review belongs in the second step, not the fourth. If you're going to inspections on Saturday, the contract for anything you liked should be with someone on Monday.

Frequently asked questions

When should I get a contract reviewed in Victoria?

Before you make an offer, or before auction day if you're bidding. Reviewing after you've signed leaves you relying on cooling-off, which doesn't apply at auction and carries a penalty in a private sale.

Can I get a contract reviewed before I've made an offer?

Yes, and you should. The Contract of Sale and Section 32 are available from the selling agent as soon as the property is listed. You don't need to be the successful buyer to ask for them.

Is there a cooling-off period at auction in Victoria?

No. If you're the successful bidder at auction you're committed immediately, with no cooling-off period and no finance clause.

How long is the cooling-off period for a private sale in Victoria?

Three clear business days after you sign, not after the seller signs. Weekends and public holidays don't count, and the day you sign doesn't count. You might be given your exchanged contract on the day the cooling-off period ends.

How long does a contract review take?

Prepared returns reviews within 4 business hours of receiving a complete contract.

What if I'm looking at several properties?

Have each one reviewed. Most buyers miss out on a few before they succeed, and the contract on the one you lose tells you nothing about the one you win.

Buying Property in Victoria: Step-by-Step Process

lindel.enticott@prepared.com.au (Lindel Enticott) — Fri, 14 Aug 2026 06:49:01 GMT

The short answer

Buying property in Victoria runs through six stages: Inspect → Review → Offer → Sign → Settle → Keys. You'll arrange finance and inspect properties, have the Contract of Sale and Section 32 reviewed before offering, sign and pay a deposit, then work through finance, insurance and searches to a settlement usually 30, 60 or 90 days later.

The six stages at a glance

Most buyers spend months searching and only days deciding. Here's the whole path, so the days go well.

Inspect Months

Review Before each offer

Offer Days

Sign Same week

Settle 30–90 days

Keys Settlement day

The six stages of buying property in Victoria, what happens at each, and typical timing
Stage	What happens	Typical timing
Inspect	Budget, pre-approval, property search, inspections	Months
Review	Contract of Sale and Section 32 reviewed before you offer	Days, before each offer
Offer	Offer made, terms negotiated	Days
Sign	Contracts signed and exchanged, deposit paid	Same week
Settle	Finance, insurance, searches, adjustments	30, 60 or 90 days
Keys	Final inspection, settlement, collect keys	Settlement day

Stage 1 of 6

Before you start looking

Plan your budget

Talk to a broker or your bank about what you can borrow and what repayments look like. Then add the costs that sit on top of the purchase price, most first-time buyers underestimate these by a wide margin.

Get pre-approval

This isn't mandatory, but pre-approval tells you your real ceiling and lets you search with confidence. It isn't a guarantee of finance, and it usually has an expiry. Note the date.

Know your maximum
Know what your repayments would look like. The pre-approved amount may not be what you want to spend
Know your pre-approval expiry

Jump to what it all costs →

Stage 2 of 6

While you're looking

Research and inspect

Research the suburb, inspect properly, and test the things you'll actually use every day. Consider a professional building and pest inspection to identify major defects or infestations before you commit.

Get contracts reviewed, before you offer

The Contract of Sale and Section 32 can reveal restrictions, unexpected costs, or terms that change what you're buying. Reviewing early means you can move quickly when the right property comes along, and negotiate while the terms are still open.

Have each contract reviewed, not just the one you fall for. Most buyers miss out on a few properties before they succeed.

Engage your lawyer or conveyancer now, not later

Have someone lined up before you offer, not after you've signed. Once contracts are exchanged the terms are fixed, and the person you engage is managing a deal they had no say in shaping.

How to choose a conveyancer or property lawyer
What to check before you make an offer

Stage 3 of 6

Making your offer

An offer should set out:

Buyer's full legal names - exactly as they'll appear on title
Purchase price
Deposit amount and due date
Settlement date
Any conditions - subject to finance, building and pest, or others you've negotiated

Conditions have to be in the offer. A verbal understanding with the agent isn't a condition. If it matters, it goes in writing before you sign.

At auction there are no conditional clauses. Auction terms are fixed and bidding is unconditional.

When should you get the contract reviewed?

Stage 4 of 6

Signing and the deposit

Sign and exchange

Once both parties have signed and exchanged copies, the contract is legally binding.

Cooling-off, precisely

The clock starts when you sign, not when the vendor signs. You have three clear business days from your own signature. That matters if there's a gap between the two. You might be sent the exchanged contract on the same day your cooling-off expires.

To use it you have to give written notice to the vendor or their agent before the expiry. Get legal help.

It costs you. The vendor keeps $100 or 0.2% of the purchase price, whichever is greater. Above $50,000 that's always the percentage: on an $800,000 property, cooling off costs $1,600.

And it very often doesn't apply at all. There is no cooling-off period where:

you sign within three clear business days before a publicly advertised auction - the pre-auction offer catch
you sign on auction day
you sign within three clear business days after the auction - the passed-in property or underbidder catch
the purchaser is an estate agent, or any corporate body - which catches a company or corporate trustee, including an SMSF
you've already signed a contract for the same land in substantially the same terms

The auction window is the one that catches the most people. Properties get sold before auction all the time, and a buyer who signs a pre-auction offer on the Thursday before a Saturday auction has no cooling-off rights at all.

Sale of Land Act 1962 (Vic) ss 31(2), (4), (5). A business day excludes weekends, and public holidays observed throughout Victoria, so a regional show day still counts.

One in your favour. The contract must carry a conspicuous notice telling you about cooling-off. If it doesn't, your right to rescind runs much longer, until you're entitled to possession or to the rents and profits. Any clause trying to waive or shorten cooling-off in Victoria is void.

Pay the deposit

Deposits are typically paid into the selling agent's trust account or your lawyer's trust account.

Never act on bank details received by email.
Verify payment details by phone, using a number you already had, not one in the email.
Agree the payment process with your lawyer or conveyancer before any money moves.

Payment redirection fraud targets exactly this moment, because it's a large transfer to an account you've never paid before. Urgency is the most consistent warning sign.

Stage 5 of 6

Between contract and settlement

This is the longest stretch, usually 30, 60 or 90 days. Four things run in parallel.

Finance

Watch your finance deadline and act fast when documents are requested. Review and sign loan documents, and give your lender whatever they ask for promptly. Missing a finance date can leave you legally committed with or without your loan, and your deposit is on the line.

Insurance

Your lender will usually require evidence of building replacement insurance before settlement. Depending on the circumstances you may also want contents, landlord, or internal liability cover.

Utilities

Organise electricity, gas and internet ahead of settlement or moving day. Worth having connected before your final inspection.

Searches and adjustments

Your lawyer or conveyancer orders the searches and prepares the Statement of Adjustments - the apportionment of council rates, water charges, land tax and owners corporation fees between you and the vendor, based on the settlement date. You pay for the period you'll own it; the vendor pays for theirs.

Stage 6 of 6

Settlement and keys

Book your final inspection

Arrange it with the agent in the week before settlement, to confirm the property is in the agreed condition. For occupied homes, booking close to settlement allows more time for them to move out. Check that inclusions are still there and nothing has been damaged since you signed.

Settlement

Your lawyer or conveyancer confirms arrangements and makes sure funds, documents and title transfer requirements are all ready. Settlement in Victoria is usually electronic, through PEXA.

Keys

Once settlement completes you'll receive confirmation the property is yours, and you can collect the keys.

Costs beyond the purchase price

The number that surprises people.

Costs of buying property in Victoria beyond the purchase price, when each falls due, and notes on each
Cost	When	Notes
Land transfer duty (stamp duty)	At settlement	Usually the largest. Rates, thresholds and concessions change — check the State Revenue Office Victoria for current figures and concessions such as first home buyer eligibility
Lawyer or conveyancer fees	At settlement, or in stages. Ask your lawyer	Ask whether the fee is fixed and how costs may change
Conveyancing disbursements and third party costs	At settlement, or in stages. Ask your lawyer	Title and plan searches, council and water certificates, land tax certificates, PEXA fees
Building and pest inspection	Usually before offering	Optional, and usually worth it
Loan fees	At settlement	Application, valuation, lender's mortgage insurance if applicable. These are often deducted from the loan amount, so the bank hands over less funds at settlement
Building insurance	Before settlement	Usually required by your lender
Adjustments	At settlement	Your share of rates, water, land tax and owners corporation fees. The entire rating period gets paid at settlement, which can mean a lump sum year of rates instead of the instalments you may be used to
Moving costs	After settlement	Removalists, locksmiths, connections, cleaning
Registration Fees	At settlement	government charges to change ownership, and lodge a mortgage (vary based on purchase price)

Land transfer duty in particular is worth calculating early. It can be tens of thousands of dollars, and it's payable at settlement, not spread across the loan.

How long does it all take?

Typical durations for each part of the Victorian property buying process
From	To	Typical
Requesting a contract	Review completed	Hours to a few days, depending on your lawyer
Offer accepted	Contracts exchanged	The vendor has three clear business days to accept and exchange, unless you shorten your offer expiry on the contract when signing
Signing	Settlement	30, 45 and 60 days are the most common. Sometimes up to 90 days or more, as negotiated. Get legal and financial advice for long or short settlements
Section 32 certificates	Obtained by the vendor	Most take around a week, but some certificates, owners corporation certificates in particular, take up to 10 business days

The searching takes months. Everything after the offer runs to dates you agreed when you signed, which is why the settlement period is worth negotiating rather than accepting.

Common questions

What are the steps to buying a property in Victoria?

Plan your budget and get pre-approval, research and inspect properties, have the Contract of Sale and Section 32 reviewed, engage a conveyancer or lawyer, make your offer, sign and exchange contracts, pay the deposit, finalise finance and insurance, complete a final inspection, and settle.

When should I engage a conveyancer or lawyer?

Before you make an offer. Once contracts are exchanged the terms are fixed, and engaging someone afterwards means they're managing a deal they had no part in shaping.

How long does settlement take in Victoria?

Usually 30, 60 or 90 days from signing, as negotiated in the contract. The period is agreed before you sign and is difficult to change afterwards.

When does the cooling-off period start in Victoria?

When the purchaser signs the contract, not when the vendor signs. Under section 31(2) of the Sale of Land Act 1962 (Vic) it runs for three clear business days after the purchaser has signed. Written notice must reach the vendor or their agent within that window.

Does cooling-off apply if I buy before or after an auction?

No. Section 31(5)(b) of the Sale of Land Act 1962 (Vic) excludes cooling-off where land is sold within three clear business days before a publicly advertised auction, on the day of the auction, or within three clear business days after it. A pre-auction offer or a post-auction deal on a passed-in property carries no cooling-off rights. Cooling-off is also unavailable where the purchaser is an estate agent or a corporate body.

What does it cost to cool off in Victoria?

The vendor may retain $100 or 0.2 per cent of the purchase price, whichever is greater, under section 31(4) of the Sale of Land Act 1962 (Vic). Above a purchase price of $50,000 the 0.2 per cent figure applies, so on an $800,000 property cooling off costs $1,600.

What costs are there beyond the purchase price?

Land transfer duty, legal or conveyancing fees, disbursements such as searches and certificates, building and pest inspection, loan fees, building insurance, adjustments for rates and outgoings, and moving costs.

What is a Statement of Adjustments?

The apportionment of council rates, water charges, land tax and owners corporation fees between buyer and vendor, calculated to the settlement date. The buyer pays for the period they own the property and the vendor pays for theirs.

Do I need a building and pest inspection?

It isn't compulsory, but it's how major defects and infestations get identified before you commit. If you want it as a condition of purchase, it has to be written into the offer. Conditional clauses often only cover major building defects and major pest infestations.

Prepared Prime

The step most people leave too late

Of everything above, contract review is the one that moves the most and costs the least. It is also the step buyers routinely push to the end, once they have already decided.

Prepared Prime gives you unlimited contract reviews while you're house-hunting, each prepared by a qualified property lawyer and back within 4 business hours. Normally starting at $49 a review. Free for your first 90 days, and the clock doesn't start until your first review.

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The rest of the series

Guide 1

When should you get the contract reviewed?

Guide 2

What to check before you make an offer

Guide 3

How to choose a conveyancer or property lawyer

General information only, not legal advice for your specific circumstances.

On this page

The six stages at a glance 1. Before you start looking 2. While you're looking 3. Making your offer 4. Signing and the deposit 5. Between contract and settlement 6. Settlement and keys Costs beyond the price How long it takes Common questions

How to Choose a Conveyancer or Property Lawyer (VIC)

lindel.enticott@prepared.com.au (Lindel Enticott) — Fri, 14 Aug 2026 06:35:58 GMT

Conveyancer or lawyer? The actual difference

In Victoria you can use either a licensed conveyancer or a lawyer to handle your property purchase.

Conveyancers must be licensed and insured. They are regulated by Consumer Affairs Victoria. Generally, to get a licence they must have completed at least 12 months full-time experience supervised by a lawyer or licensed conveyancer. As of April 2027, they must also undertake mandatory continuing professional development.

Lawyers don't need a conveyancing licence, due to their significant qualifications (law degree and post-graduate legal traineeship). They must be admitted to practice and hold a current practising certificate. They must satisfy continuing professional development (learning to stay up to date on legal changes) and character tests.

Australian lawyers can practise in all States and Territories.

Lawyers can handle the property transfer, and they can also advise on disputes, complex title issues and anything that falls outside a standard transaction.

Lawyers are regulated by the Victorian Legal Services Board + Commissioner and have coverage under the legal profession indemnity scheme (insurance).

Comparison of licensed conveyancers and property lawyers in Victoria across regulation, scope of advice, disputes, complex title, cost and legal professional privilege
Factor	Licensed conveyancer	Property lawyer
Licensed by	Business Licensing Authority	Victorian Legal Services Board + Commissioner
Regulated by	Consumer Affairs Victoria, under the Conveyancers Act 2006 (Vic)	Victorian Legal Services Board + Commissioner
Handles the transfer	Yes	Yes
Can give legal advice	Only where it is consequential or ancillary to the transaction itself	Yes, without that limit
Disputes and litigation	No	Yes
Complex title, caveats, easement disputes	Limited, usually refers out	Yes
Planning and development consent advice	No, expressly excluded by statute	Yes
Typical cost	Lower	Higher
Legal professional privilege	Does not apply. Confidentiality duties only	Applies

Sources: Conveyancers Act 2006 (Vic), s 4; Victorian Legal Services Board + Commissioner; Evidence Act 2008 (Vic), s 117.

When you'll want a lawyer

The value of a lawyer shows up when a transaction stops being standard. Often you don't know that in advance, which is the why lawyers are often preferred, not because an experienced conveyancer does the work badly.

Ask your conveyancer when they would have to refer work to a lawyer. Consider the costs of a lawyer to take on the extra work on short notice. These fees may be highe than with a firm that you are already working with for your purchase.

Consider a lawyer if:

You want help drafting legally binding special conditions
The title has complications or your purchase is out of the ordinary
Something is already contested - a deposit dispute, a misdescription, a failed condition
You're buying off the plan - sunset clauses, variation rights, developer obligations
You're buying through a trust, company or SMSF
Foreign buyer duty, FIRB or land tax surcharges apply
The purchase is interstate or cross-border
The stakes are high enough that you want legal professional privilege to apply to what you discuss with your advisor

What a conveyancer legally cannot do

This isn't a question of skill. Section 4(3) of the Conveyancers Act 2006 (Vic) puts a specific list of legal work that might relate to a property transaction outside "conveyancing work" altogether. A licensed conveyancer cannot take it on, however competent they are.

That list includes initiating legal proceedings, creating or varying trusts, preparing wills, applying for probate or letters of administration, establishing a company, financial or investment advice, and two that catch property buyers out: advice on obtaining planning or development and use consent, and adverse possession or boundary applications under the Transfer of Land Act 1958.

If you intend to renovate, extend, subdivide or change how the land is used, the advice you need on whether that's achievable sits outside what a conveyancer is permitted to give.

The general principle: a conveyancer manages a transaction. A lawyer can also manage what happens when the transaction goes wrong.

Six questions to ask before you engage

Ask these of anyone, conveyancer or lawyer.

Question 1

Will the same person handle my file from start to finish?

Someone who knows your file from the beginning makes a real difference when a question arises at 4pm on the day before settlement. Ask who you'll actually be dealing with, and whether that changes after you sign.

Question 2

How easy are you to contact?

Property moves quickly. Ask what their response time is, who you call when your main contact is away, and whether you'll get a person or a queue.

Question 3

How do you protect my money and information?

Property transactions move large sums and sensitive documents. Ask what their tech security looks like, how they verify payment details, how they handle identity documents, and what happens if you receive changed bank details by email. A firm that can't answer this cleanly is a risk.

Question 4

Do you focus on property?

Experience shows up when deadlines are tight and something unexpected appears. Ask how much of their work is property, and how many matters your advisor will be handling.

Question 5

Are the fees clear, and what isn't included?

Ask for the fixed fee in writing, and separately for an estimate of disbursements: title searches, certificates, out of pocket expenses. They should be confidently explaining their costs without hidden fees and explaining what would cause the price to change.

Question 6

Do you feel confident in them?

Price matters. So does whether you believe this person will have your back at the point it counts. If you're being rushed, patronised, or given vague answers before you've engaged, that's information.

How to check they're actually registered

Both are publicly verifiable in a couple of minutes, and both registers are free.

Lawyers and law practices

Search the Register of Lawyers, maintained by the Victorian Legal Services Board + Commissioner. You can filter by individual lawyer or by law practice, and the register also shows disciplinary action.

Search by name. Practices hold a legal entity ID beginning E00, but that identifier isn't published on the public register, so name is what you match on.

Licensed conveyancers

Search the public register of licensed conveyancers, maintained by the Business Licensing Authority and searchable through Consumer Affairs Victoria.

The register shows the licensee's name, licence number, licence type, business name and any conditions on the licence.

Ask for the licence number, then check it against the register yourself. Anyone legitimate will give it without hesitation. Pay attention to conditions on the licence as well as its existence, a licence can be current and still restricted.

What should it cost in Victoria?

Two separate numbers, and they're often conflated.

Professional fees

What you pay for the work. Conveyancer-led is typically lower; lawyer-led is typically higher. The gap reflects capability, not padding.

Disbursements

Third-party costs passed through: title and plan searches, council and water certificates, land tax certificates etc. Largely the same whoever you engage.

Questions worth asking:

Is the professional fee fixed, or hourly?
What triggers an extra charge? Auction urgency, a failed settlement, a second contract review?
When is payment due on engagement, or at settlement?
What happens if the purchase falls through?

The cheapest quote isn't always the lowest cost. A low professional fee with marked-up disbursements and per-item charges can land higher than a fixed fee that includes everything. Ask for the total.

One risk worth understanding: payment redirection fraud

Property settlements are a standing target, because they involve large one-off transfers to an account the buyer has never paid before.

The pattern: someone intercepts or spoofs an email in the chain and sends you updated bank details shortly before a deposit or settlement payment. The email looks legitimate. The details are not.

Payment redirection fraud is not always covered by standard Professional Indemnity insurance.

How to protect yourself:

Never act on bank details received by email - treat any change of details as suspect by default
Verify by phone, using a number you already had - not one in the payment request email
Confirm the first transfer with a small test payment where practical
Ask your conveyancer or lawyer up front how they communicate payment details, and agree the process before any money moves
Be sceptical of urgency - pressure to transfer immediately is the most consistent feature of these attempts

This is a fair question to ask before you engage anyone. How they answer tells you a lot.

Common questions

Do I need a conveyancer or a lawyer in Victoria?

Either can handle a residential purchase. Licensed conveyancers are licensed by the Business Licensing Authority and regulated by Consumer Affairs Victoria under the Conveyancers Act 2006 (Vic), and handle the transfer. Property lawyers are admitted to legal practice and can also deal with disputes, complex title issues and matters outside a standard transaction. For a straightforward purchase, a conveyancer is usually sufficient.

What can a property lawyer do that a conveyancer can't?

Advise outside the scope of conveyancing work, act in disputes and litigation, and handle complex matters such as contested caveats and easements, company share and stratum properties, trust and company structures, and off-the-plan complications. Section 4(3) of the Conveyancers Act 2006 (Vic) also puts planning and development consent advice, adverse possession applications, trusts, wills and estates outside a conveyancer's remit.

Is a conveyancer cheaper than a lawyer?

Generally yes on professional fees. Disbursements such as searches, certificates and PEXA fees are broadly similar either way. Compare the total, not the headline fee.

How do I check a conveyancer or lawyer is registered in Victoria?

Lawyers and law practices appear on the Victorian Legal Services Board and Commissioner Register of Lawyers. Licensed conveyancers appear on the Business Licensing Authority public register of licensed conveyancers, searchable through Consumer Affairs Victoria. Search by name, and ask for the licence number so you can match it.

Does legal professional privilege apply to a conveyancer?

No. Legal professional privilege protects confidential communications with a lawyer for the dominant purpose of legal advice. A licensed conveyancer is not a lawyer, so privilege does not attach. Conveyancers do owe confidentiality duties, but confidentiality is not the same as privilege and does not resist a subpoena or a regulator's compulsory notice.

What questions should I ask before engaging a conveyancer?

Who handles the file from start to finish, what their response times are, how they protect your money and identity documents, how much of their work is property, what the fixed fee includes and excludes, and what would change the price.

How do I avoid payment redirection fraud when buying property?

Never act on bank details sent by email. Verify any details or changes by phone using a number you already had. Agree the payment process with your conveyancer or lawyer before any money moves, and treat urgency as a warning sign.

Prepared Prime

Whoever you choose

The contract is worth reading before you offer, not after. That is true regardless of who ends up handling your settlement.

If you'd like us to read the next one, Prepared Prime gives you unlimited contract reviews while you're house-hunting, each prepared by a qualified property lawyer and back within 4 business hours. Normally $49 a review. Free for your first 90 days.

Start your free 90 days →

Prepared Legal Services Pty Ltd is an Australian legal practice regulated by the Victorian Legal Services Board + Commissioner, legal entity ID E0030050. You can find us by name on the Register of Lawyers — exactly as this page suggests you do with anyone.

When should you get the contract reviewed?
What to check before you make an offer

General information only, not legal advice for your specific circumstances.

On this page

The actual difference When you'll want a lawyer Six questions to ask How to check they're registered What it should cost Payment redirection fraud Common questions

What is a Section 32 Vendor Statement and why it matters for both vendors and purchasers in Victoria

lindel.enticott@prepared.com.au (Lindel Enticott) — Mon, 10 Nov 2025 02:16:06 GMT

Prepared Guides / Blogs

One in four Victorian properties carries a restrictive covenant

One in four Victorian properties carries a restrictive covenant

What is a restrictive covenant?

Here's the mistake buyers often make

What we found in 1,358 contracts

Three covenants we'd want a buyer to know about

The covenant that could affect your excavation plans

The covenant that's not actually written on the title

The covenant that sounds ridiculous — but is still there

Then there are the modern covenants

One dwelling can be the most important restriction of all

Sixteen properties were already disclosed as being in breach

Know what you can do with the land before you buy the house.

The average Victorian contract of sale is now 92 pages

The average Victorian contract of sale is now 92 pages

Where do all those pages come from?

If you only have time to check four things

The particulars of sale

The finance and inspection conditions

The special conditions

The title, encumbrances and building works disclosures

The contract you read may not be the contract you sign

The problem isn't really that Victorian contracts are 92 pages long. The problem is that 92 pages can make every paragraph look equally important.

Ninety-two pages. One afternoon. Free.

1 in 11 homes we reviewed had building works with no permit

One in eleven homes we reviewed had building works with no permit

The house can look finished. The paperwork might not be.

Why should a buyer care?

The owner-builder connection

Seven of the 31 were high-value or structural

The risk often appears later

The four places we keep seeing

What should you actually look for?

What if the contract says nothing?

Don't confuse "unpermitted" with "unsafe"

The interesting thing about these 31 properties isn't that something went wrong. It's that the contract gave the buyer a chance to find out about it.

One in eleven. But the real number may be higher.

What we'd do if we were buying the house

See what's hiding in your contract.

Three in four Victorian contracts arrive with the finance clause blank

Three in four Victorian contracts arrive with the finance clause blank

"But surely I can get out if the bank says no?"

What does the finance clause actually do?

Why are so many contracts blank?

What happens if your loan falls through?

There's another clause buyers often overlook

The five-minute check we'd recommend

Don't rely on cooling off as your finance strategy

The important thing about a blank clause

Before you sign, stop for five minutes

Before you sign, know what you're signing.

Victorian Contracts Analysis

We’ve read more than 266,000 pages of Victorian property contracts. Here’s what we found.

The first surprise: the "standard" contract isn't necessarily standard

Three in four contracts had a blank finance clause

One in eleven properties had building work without the expected permits

One in four properties had a restrictive covenant

Easements are common. Some aren't obvious from the title.

The contract may be 92 pages. You probably need to focus on four.

The biggest risk isn't something unusual. It's something ordinary you didn't recognise.

The same clause can mean something very different to different buyers

The biggest advantage a buyer has is timing

So, what should a buyer actually do?

What we learned from 1,358 contracts

Want to know what's in your contract?

What to check before you make an offer (Victoria)

Is it a private sale or an auction?

Have you actually read the Contract and Section 32?

What do the special conditions actually do?

Apartment or townhouse? Check the owners corporation

Does the settlement period work for you?

What's actually included?

The check most buyers skip

And the one people underestimate

The short version

Common questions

What should I check before making an offer on a house in Victoria?

Can I ask for the Section 32 before making an offer?

What are special conditions in a contract of sale?

Easements are common.
Some aren't obvious from the title.

The contract may be 92 pages.
You probably need to focus on four.

Private sale or auction?
The timing is completely different