FAQ
Buying: we work with your lender (if you have one) and the vendor’s representative to book settlement on the date in the contract. On settlement day the funds are paid, the transfer is lodged electronically with Land Use Victoria, and duty is paid to the State Revenue Office. If you have a loan, your lender’s mortgage is registered at the same time.
Selling: we arrange for your existing mortgage to be discharged at settlement, confirm the payout figures with your lender and make sure the balance of the price is paid as you direct.
If you hold a paper certificate of title, or a lender or someone else holds it, tell us early so we can arrange it before settlement.
You do. If you are selling, contact your electricity, gas, water and internet providers in the week before settlement to arrange final readings and final bills. If you are buying, contact your chosen providers to arrange connection from the settlement date.
Internet availability and installation times vary between properties, so check with your preferred provider early, particularly if a technician needs to attend. Water and council rates are adjusted between buyer and seller at settlement, and we notify the relevant authorities of the change of ownership.
Don’t forget to redirect your mail. For a step-by-step list, see our buying a house checklist or selling a house checklist.
Before you sign or bid at auction. When a buyer signs a Contract of Sale it is still only an offer. It becomes binding once the vendor signs and the accepted contract is communicated to the buyer, so the time to ask questions or request changes is before you sign.
Send us the proposed contract, the Section 32 statement and any special conditions and we will review them for you. See our contract review service. If you have already signed, tell us straight away and include the signing date and any deadline that is coming up.
In most transactions the transfer is lodged electronically with Land Use Victoria at settlement, and the buyer is registered as the new owner shortly afterwards. If you have a loan, your lender’s mortgage is registered at the same time.
All new Victorian certificates of title have been electronic since 3 August 2024. Existing paper certificates remain valid until they are needed for a land transaction. If you hold a paper title, or it is missing, let us know early so it does not hold up settlement.
Hendersons Legal have qualified lawyers ready to give you sound and practical advice at any stage of the buying or selling process. A vendor will need to engage solicitors to:
- prepare the Section 32/Vendor’s Statement and the Contract of Sale early on in the selling; and
- check the real estate agent’s agreement.
A purchaser may seek legal assistance in:
- carrying out a due diligence of the desired property; and
- reviewing the Vendor’s Statement, the Contracts of Sale and other relevant documents before committing to the purchase of the property.
Once a Contract of Sale has been signed, then both the vendor and purchaser will need to appoint solicitors to start the conveyancing process to ensure that all of the legal steps are ready to be completed at the settlement.
A three clear business day cooling-off period generally applies to private sales of residential and small rural property in Victoria. If you cool off, the vendor can keep the greater of $100 or 0.2% of the price.
Cooling off usually does not apply if you:
- buy at a publicly advertised auction, or within three clear business days before or after it
- buy property used mainly for industrial or commercial purposes
- buy land over 20 hectares used mainly for farming
- have previously signed a similar contract for the same property in substantially the same terms
- are an estate agent or a corporate body
Notice must be given in writing within the cooling-off period, and you should keep proof of when and how it was given. Call us on (03) 9629 2211 straight away if you are thinking of cooling off, as the timeframe is very short.
Hendersons Legal has fully qualified and experienced conveyancing lawyers to advise and assist on all issues associated with the sale and purchaser of the property, whether residential or commercial. When acting for a vendor, Hendersons Legal will:
- Carry out a full range of searches and investigations in order to prepare the Section 32/Vendor’s Statement.
- Prepare the Contract of Sale.
- Where appropriate, prepare and serve of a section 27 notice on the purchaser’s solicitors seeking the early release of the deposit to the vendor.
- Review the Transfer of Land, Statement of Adjustments and other documents prepared by the Purchaser’s solicitors.
- Liaise with the vendor’s solicitors to arrange the settlement which in most Victorian transactions happens electronically.
When acting for a purchaser, Hendersons Legal will:
- Review any prospective Contract of Sale and advise you about the terms and conditions of the sale.
- Order, after a Contract of Sale is signed, certificates to check that the property is in order and that full and proper disclosure about all relevant matters has been made to you by the vendor.
- Respond to all communications with the vendor’s solicitors including in relation to the service of a section 27 certificate in an attempt to obtain the early release of the deposit to the vendor including investigate the risks of doing this and advise you accordingly.
- Prepare the transfer of land and review all of the documents needed to settle the sale of the property.
- Prepare a statement of adjustments which pro-ratas the rates and owner corporation fees, if any, for the period of ownership up to the proposed date of settlement.
- Liaise with the vendor’s solicitors to arrange the settlement which in most Victorian transactions happens electronically.
Most buyers pay land transfer duty (stamp duty) to the State Revenue Office, plus Land Use Victoria registration fees for the transfer and any mortgage. The amount of duty depends on the price, the type of property and whether you qualify for an exemption or concession, such as the first home buyer duty exemption or concession.
Use the State Revenue Office land transfer duty calculator for an estimate, then ask us to confirm the figures for your purchase. We will set out duty, registration fees, adjustments and our professional fees before you engage us, so there are no surprises at settlement.
Settlement is when the balance of the price is paid and ownership passes from the vendor to the buyer. Most Victorian settlements now happen electronically through an online settlement platform, so there is usually no need for anyone to attend in person or to arrange bank cheques.
Before settlement, the representatives for both sides prepare the transfer, the statement of adjustments for rates and other outgoings, and the payment directions, and the lenders confirm their figures. We will tell you exactly what we need from you and when. Always confirm payment details by calling us on a number you already know, especially if you receive bank details by email.
Any changes to the Contract of Sale, no matter how minor, must be signed by both the purchaser and the vendor. If, for example, the price or date of settlement is changed then the change must be initialed by both parties.
The buyer pays the deposit, usually 10% of the price unless something different is agreed, either when the buyer signs or when the vendor signed contract is handed over. The deposit is normally held in trust by the agent or a legal practitioner until settlement.
Early release of the deposit to the vendor is only possible in limited circumstances, and the rules change from 1 July 2027. Tell us early if early release is likely to be an issue in your sale or purchase.
After the agent tells the purchaser that they have been successful, then the agent will (usually) give the purchaser or their solicitors a copy of the Contract of Sale. No sale progresses until this contract has been agreed to and signed. The seller does have the right to negotiate on terms held within the contract before it is signed. If you are having any issues or concerns when either buying or selling a property and need independent advice from a property conveyancing lawyer in Melbourne, feel free to contact us.
Hendersons Legal will contact you by telephone to confirm that settlement has occurred. For our vendor clients we will also provide immediate written notification to the real estate agent who holds the keys to the property. Shortly after that (there is no set time but is usually about 30 minutes) the purchaser can contact the estate agent and arrange to collect the keys to your new property from the agents.
Real estate agents generally do one of three things. First, they will indicate to the purchaser that they have been given a strong indication that the vendor will accept the offer. Secondly, they will present the contract to the vendor and ask them to sign the contract. There is no binding contract unless and until the vendor signs the contract and acceptance of the offer is given to the purchaser. Thirdly, the real estate agent might try and get higher offers from other prospective purchasers which is higher than your offer.
This means that the Contract of Sale is subject to or conditional on the purchaser obtaining or being granted finance by the financial institution nominated in the Contract of Sale at some time after the contract of sale is signed. In other words, the purchaser only has to proceed with the Contract of Sale if their finance is approved. If a purchaser wants the contract to be “subject to finance”, then it is critical that:
- the name of the financier;
- the loan amount; and
- the approval date,
are completed in the Particulars of Sale in the Schedule at the front of the Contract of Sale. The purchaser must also comply with the terms of the General Conditions or any Special Conditions in the Contract of Sale that apply to the loan approval ie the purchaser must promptly apply for finance and if not obtain, they must give a notice to the vendor that they seek to withdraw from the contract. All dates must be strictly complied with or otherwise the purchaser may lose their right to end the Contract of Sale. Hendersons Legal recommends that you seek legal advice should you wish make a Contract of Sale subject to finance.
If you are buying a new home and selling your old one, you may want both settlements to happen on the same day. This can be done, and electronic settlement makes it easier to link the two transactions, but there are still risks if one settlement is delayed, for example if your buyer cannot settle on time.
Talk to us before you sign either contract so the settlement dates, finance and any bridging arrangements line up. We will explain the options and what happens if one side is delayed.
It depends on the property and the seller. GST can apply to the sale of new residential premises, and to commercial property or vacant land sold by a GST-registered seller in the course of their business. Most sales of existing homes do not attract GST. A tenanted commercial property may be sold GST-free as a going concern if the requirements are met.
Check how the price is described in the Particulars of Sale. If it says “plus GST”, GST is likely to be added to the price. If the purchase involves new residential premises, the buyer may also need to withhold an amount for GST at settlement. We will check the contract for you, and your accountant can advise on the tax effect for you.
Sometimes. A buyer can only nominate another person to complete the purchase if the contract allows it. A nomination can have stamp duty consequences, and in some cases it is treated as a further transfer that attracts additional duty.
Talk to us before you sign a nomination so we can check the contract terms, the duty position and the timing with the State Revenue Office. Contact our conveyancing lawyers in Melbourne to discuss your purchase.
The answer to this is complex. The short answer is usually no. However, a purchaser may be entitled to exercise the cooling off rights which are set out on the front page of the Contract of Sale depending on the type of contract. If the purchaser does not have cooling off rights, then they may be able to reach agreement with the vendor. However the purchaser may be liable for costs, charges and interest (and possibly the loss of the deposit) if the purchaser has no legal entitlement to terminate the Contract of Sale. Any purchaser in this position should seek immediate legal advice from a fully qualified solicitor. Hendersons Legal is able to give you quick and practical advice should any problems arise. We have successfully acted for purchasers who have sought to terminate a contract after signing it. If you need advice from a property conveyancer in Melbourne simply contact us today.
