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Victorian Contracts Analysis

Written by Lindel Enticott | Sep 10, 2026, 2:03:25 AM
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
92
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.

92
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
92
4
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. 1
    Can I get out if my finance isn't approved?

    Don't assume. Check the finance condition.

  2. 2
    Can I use the property the way I intend to?

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

  3. 3
    Does the paperwork match what I can see?

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

  4. 4
    Is there anything unusual hiding in the special conditions?

    This is often where important property-specific terms appear.

  5. 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.

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.