Before You Sign Your First Contract of Sale: What to Check and Which Clauses to Ask For (Victoria)

Updated October 2026 · General information only, not legal advice. Victorian focus.

Signing a contract of sale is the moment a lovely daydream turns into a legally binding document. There's no "undo" button, no extended warranty, and no friendly shop assistant to take it back with a receipt. The good news: with the right checks and a conveyancer in your corner, you can sign with confidence. Here's what to look at and what clauses to discuss.

First, who's who

The contract of sale is a legally binding agreement between buyer and seller setting out price, deposit, settlement date, inclusions and conditions. In Victoria, most contracts use the standard form approved by the Law Institute of Victoria and the REIV, with special conditions added where needed. It's usually prepared by the seller's conveyancer or solicitor. Request the contract before you make an offer or bid at auction, and send it straight to your own conveyancer or solicitor.

The Section 32 vendor statement: your best friend

In Victoria, a seller must give you a Section 32 vendor's statement before you sign (under the Sale of Land Act 1962). It's a legal disclosure about the property. According to Consumer Affairs Victoria, a contract is not binding on a buyer if a Section 32 is not provided, or is incomplete or inaccurate. A Section 32 generally covers:

• Title details, mortgages, covenants, easements and caveats
• Planning and zoning information, overlays and notices
• Rates, taxes and charges, and any outstanding amounts
• Owners corporation details and levies (for apartments and townhouses)
• Building permits, occupancy certificates and insurance for recent works
• Services connected to the property and any notices or orders affecting it
• A due diligence checklist, which prompts you to investigate flooding, bushfire risk, contamination, neighbours and more

Read the Section 32 and ask your conveyancer to explain anything unusual: easements running through the backyard, an unapproved renovation or a large special levy are classic surprises.

Cooling-off: your safety net (but not for auctions)

Under section 31 of the Sale of Land Act, buyers in Victoria generally get a three clear business day cooling-off period, counted from the business day after you sign. To use it, you must give written notice to the vendor or the agent within that time. A small penalty applies if you cool off (check the current amount with your conveyancer). Importantly, the cooling-off right does not apply if you buy at or within three clear business days before or after a publicly advertised auction, and a few other exceptions apply. Consumer Affairs Victoria also notes that a buyer's right to cool off can't be removed by a clause in the contract.

Auction rules are strict. Contracts signed at auction are unconditional: no cooling-off, no finance or building clauses. Do your inspections, contract review and finance approval before bidding.

Special conditions: the clauses to discuss with your conveyancer

Special conditions are extra clauses negotiated between buyer and seller (private sales). They must be properly drafted, so ask your conveyancer to prepare them. Common buyer-friendly examples:

1. Subject to finance. The contract is conditional on you obtaining loan approval. A good finance clause usually includes: the lender (or any lender), the minimum loan amount, a maximum interest rate if relevant, the date by which finance must be approved, and what happens if it isn't (you can end the contract and recover your deposit). Even with pre-approval, it's wise to include one. Without it, if your loan falls over you could lose your deposit and face damages.
2. Subject to building and pest inspections. Gives you a set period to inspect and the right to withdraw or renegotiate if there are significant issues. Specify who can do the inspection, how many days you have, and what "unsatisfactory" means. Consumer Affairs Victoria has encouraged buyers to use building reports to negotiate price and conditions.
3. Subject to sale of your existing property. For upgraders: the contract depends on selling (or settling the sale of) your current home within a stated time. Sellers often dislike this clause, so it's more common when the market is slower.
4. Subject to your solicitor's/conveyancer's review of the Section 32 and title documents (a short period)
5. Subject to a satisfactory valuation by your lender, so you aren't stuck if the valuation comes in low
6. Inspections of specific items: for example, the owners corporation records or strata report for apartments, or a specialist inspection (drainage, asbestos, electrical, structural)
7. Inclusions and exclusions in writing: dishwasher, light fittings, curtains, built-in robes, heaters
8. Settlement date that realistically matches your loan approval, your sale, and your move
9. Electronic signing and transmission of documents, if you aren't local
10. Repairs or rectification the seller has agreed to, with completion before settlement

Example style of wording (illustration only; have your conveyancer draft the real thing): "This contract is subject to the purchaser obtaining approval for a loan of not less than $[amount] from a lender of the purchaser's choice on terms acceptable to the purchaser by [date]. If approval is not obtained by that date, either party may end this contract by written notice and the deposit will be refunded in full."

Things to check in the contract itself

• Names of buyers (exactly as they should appear on title) and how you're buying (joint tenants or tenants in common, and unequal shares)
• Price, deposit and settlement date. In Victoria, the deposit is negotiable, up to 10% of the price, and the contract says when it's payable. Consider asking for a smaller deposit if cash flow is tight
• Who holds the deposit, usually the agent's trust account or your conveyancer's
• GST, if relevant (new properties, land)
• Vendor warranties about the property and whether they have been modified by special conditions
• Risk and insurance between signing and settlement
• Default and penalty clauses: interest on late settlement, notice periods
• Planning or council matters, and any vendor-supplied reports (don't rely on them blindly)
• Off-the-plan purchases: extra disclosures, sunset clauses and changes to plans

Checklist: before you sign

• Got the contract and Section 32 well before signing or bidding
• A conveyancer or solicitor has reviewed both, and explained any red flags
• Completed the due diligence checklist (flood, fire, easements, neighbours, noise)
• Booked building and pest (and strata report, if applicable) at the right time (before auction, or as a condition for private sales)
• Confirmed finance: pre-approval is current, and you know the settlement and finance dates line up
• Added a subject to finance clause (and others you need) in a private sale
• Checked inclusions/exclusions, deposit amount and who holds it
• Confirmed the names and ownership structure on the contract
• Read the cooling-off notice and know the deadline if it applies
• Know that auctions have no cooling-off and are unconditional
• Have funds ready for the deposit and a plan for settlement costs
• Asked: "What's the worst that can happen if this goes wrong?" and are comfortable with the answer

A lighter note

Signing a contract without reading the fine print is like adopting a puppy without asking how big it gets. Cute at first, enormous later, and it will definitely eat your shoes. Have a conveyancer read the fine print, and enjoy the puppy.

Official links

• Consumer Affairs Victoria, contracts and disclosure statements (Section 32 and cooling-off): https://www.consumer.vic.gov.au/licensing-and-registration/estate-agents/running-your-business/authorities-commissions-and-contracts/contracts
• Consumer Affairs Victoria, buying and selling property: https://www.consumer.vic.gov.au
• Sale of Land Act 1962 (Vic), via Victorian Legislation: https://www.legislation.vic.gov.au
• Law Institute of Victoria (find a lawyer): https://www.liv.asn.au
• Australian Institute of Conveyancers (Victoria): https://www.aicvic.com.au
• MoneySmart (ASIC), buying a home: https://moneysmart.gov.au

Disclosure and Disclaimer

This article is general information only and is not legal, financial, credit, tax or investment advice. It does not consider your objectives, financial situation or needs. Contract terms, example wording and legal requirements vary and change; sample clauses are illustrations only. Please do your own research and obtain independent advice from a licensed conveyancer or solicitor, and a licensed financial adviser, mortgage broker and accountant, before signing any contract. Loan approvals are subject to lender criteria. To the maximum extent permitted by law, our business, its directors, employees and brokers accept no liability for any loss or damage arising from reliance on this article.