Settlement FAQs for purchasers in Victoria: What to expect after you sign a contract.

You’ve signed the contract, paid the deposit, and now you’re counting down to settlement.

Here are the 10 common questions we get from purchasers after they’ve signed, and what you need to know to stay protected and prepared:

When should I arrange building insurance?

We recommend you insure the property immediately after signing the contract even though the legal ownership and risk haven’t transferred to you yet. If the property is damaged before settlement, you may prefer to rely on your insurance policy, and your lender will require evidence of your insurance for the security.

Does the Owners Corporation (OC) insurance cover my apartment?

OC insurance typically covers common areas and building structure but not the contents in your individual lot, upgrades, or liability inside your apartment. You should review the OC Certificate of Currency and consider supplemental coverage for internal fixtures and liability.

What happens if the property is damaged before settlement?

The vendor must keep the property in substantially the same condition as when they sold the property to you (except for fair wear and tear which is permissible).

If damage occurs between sale and settlement you may be entitled to compensation but usually you are still required to settle as scheduled. Let your solicitor know about any damage immediately so they can confirm the terms of your contract and your rights.

What happens if settlement is delayed?

If the delay is your fault, you may owe penalty interest, legal costs and risk Notices to terminate from the vendor. You should complete your due diligence, seek pre-approval before buying and ensure reasonable settlement period is negotiated to avoid delays.

If the vendor is at fault, we’ll act to protect your rights.

Timeliness is key. We will work with you to avoid any breach or reduce the costs where possible.

Who is responsible for new notices (e.g., fencing notice or building notices)?

If a notice is served after the contract is signed, it’s usually your responsibility, even if the issue existed before sale.

Notices could be issued for a range of matters such as boundary fence or building condition, breach of building or planning requirements or developments in the area.

However, if the Vendor knew of a material fact and didn’t disclose it, you may have grounds for a legal claim.

How do I pay the balance of funds at settlement?

You’ll provide the balance of funds (including adjustments for rates and taxes) to your lawyer before settlement day, or depending on your bank, you may be able to authorise them to debit your account for any contributions. 

At Prepared, we will give you a timely and detailed breakdown of the funds required and at all times remind you to take careful measures when transferring your funds. 

We take the handling and payment of settlement funds seriously. You should too. 

What if I find an issue after settlement?

It depends:

• If it’s a defect the seller knew about and didn’t disclose, you may have legal rights to pursue the vendor in a civil matter.

• If it’s a new issue or outside the vendor’s responsibility, you’ll need to resolve it yourself.

We’ll help you assess your options and advise on next steps.

When do I get the keys?

Once settlement is confirmed (usually within minutes of completion) we notify the agent, who then releases the keys to you.

Can I access the property early to drop things off or measure up?

Not without a formal licence agreement. Never access the property without written approval.

The information is general in nature and does not constitute legal advice. If you are buying or selling, please contact us to request legal advice.