Buying a property is one of the biggest financial decisions many people will make. While buyers often focus on the location, price and condition of a property, the Contract of Sale contains important legal terms that can significantly affect the transaction.
Before signing a Contract of Sale in Victoria, buyers should understand what they are agreeing to and identify any potential issues that may affect their purchase.
A professional contract review can help buyers make informed decisions and proceed with greater confidence before entering into a legally binding agreement.
What Is a Contract Review?
A contract review is the process of carefully examining the Contract of Sale and related documents before a buyer signs.
In Victoria, the Contract of Sale sets out the legal terms and conditions of the property transaction, including the purchase price, settlement date, special conditions and obligations of both the buyer and seller.
A conveyancer can review the contract documents and explain important terms, potential risks and matters that may require attention before signing.
Why Should Buyers Review a Contract Before Signing?
1. A Contract of Sale Is Legally Binding
Once a buyer signs a Contract of Sale, the agreement is generally legally binding.
This means buyers should understand the terms of the contract before committing to the purchase.
A contract review before signing gives buyers the opportunity to ask questions, negotiate changes where appropriate and ensure they understand their obligations.
2. Identify Important Special Conditions
Special conditions can vary between property contracts and may have a significant impact on the buyer.
Examples may include:
- Finance conditions
- Building and pest inspection conditions
- Settlement arrangements
- Seller obligations
- Additional requirements specific to the property
Buyers should understand any special conditions before signing rather than discovering issues after the contract has been accepted.
3. Review the Section 32 Vendor Statement
In Victoria, sellers must provide a Section 32 Vendor Statement to prospective buyers before a Contract of Sale is signed.
The Section 32 contains important information about the property, including:
- Title details
- Mortgages
- Easements
- Covenants
- Planning information
- Rates and other property information
A contract review often includes checking the Contract of Sale together with the Section 32 Vendor Statement to help identify matters that may affect the buyer.
4. Understand Property Restrictions and Title Issues
A property title may contain information that affects ownership or future use of the property.
Examples include:
- Easements
- Covenants
- Caveats
- Restrictions on the title
These matters do not always prevent a purchase, but buyers should understand them before signing a contract.
Common Mistakes Buyers Make Before Signing a Contract
Assuming the Contract Is Standard
Many buyers assume every property contract is the same. However, special conditions and property details can vary between transactions.
Focusing Only on the Purchase Price
The purchase price is important, but the contract terms can also affect the buyer’s rights and obligations.
Waiting Until After Signing to Ask Questions
Once a contract is signed, options may be limited. Seeking advice before signing gives buyers more opportunity to address concerns.
Not Reviewing the Section 32 Vendor Statement
The Section 32 contains important information about the property. Buyers should understand what is disclosed before committing to the purchase.
What Does a Conveyancer Check During a Contract Review?
During a contract review, a conveyancer may review matters including:
- Contract terms and special conditions
- Settlement date
- Deposit requirements
- Section 32 Vendor Statement
- Title information
- Easements and restrictions
- Other relevant property information
The purpose is to help buyers understand the documents and identify potential issues before signing.
When Should a Buyer Arrange a Contract Review?
The best time to arrange a contract review is before signing the Contract of Sale.
Ideally, buyers should provide the contract and Section 32 Vendor Statement to their conveyancer as soon as possible after receiving them.
This allows enough time to review the documents, discuss any concerns and make an informed decision.
Frequently Asked Questions
Do I need a conveyancer to review a Contract of Sale in Victoria?
While buyers are not legally required to have a conveyancer review a contract before signing, obtaining professional advice can help buyers understand the legal documents and potential risks involved.
Can a conveyancer review a Contract of Sale before auction?
Yes. Buyers can arrange a contract review before an auction. This allows them to understand the contract terms before bidding.
Is a Contract of Sale review the same as a property inspection?
No. A contract review focuses on the legal documents and terms of the transaction.
A building or pest inspection focuses on the physical condition of the property.
Many buyers choose to complete both before committing to a purchase.
Can a contract be changed after signing?
Once a Contract of Sale has been signed, changing the terms generally requires agreement from all parties. This is why reviewing the contract before signing is important.
Need Help Reviewing a Contract of Sale in Victoria?
Buying property involves important legal documents and decisions. A contract review before signing can help buyers understand their obligations and identify potential issues early.
Prox Conveyancing provides professional contract review and conveyancing services for buyers throughout Victoria.
Contact Prox Conveyancing if you need assistance reviewing a Contract of Sale before purchasing property.
About the Author
Meet Sally
Sally Kwok is a Licensed Conveyancer and the Director of Prox Conveyancing. With more than 16 years of experience in the conveyancing industry, she is committed to helping buyers and sellers navigate Victorian property transactions with confidence. Sally is passionate about providing clear communication, practical guidance and personalised service throughout every stage of the conveyancing process.
👉 Learn more about Sally on our About page.
About Prox Conveyancing
Prox Conveyancing is a Victorian conveyancing practice providing professional conveyancing services for residential property transactions across Victoria. We assist buyers, sellers, investors and families with a wide range of conveyancing matters, delivering personalised service, transparent communication and professional support from contract through to settlement.
👉 Learn more about Prox Conveyancing on our About page.
This article provides general information only and is not legal advice. Property transactions vary depending on individual circumstances. If you require advice about your specific situation, please seek professional assistance.