Conveyancing (Victoria) FAQ

A section 32 statement is a written disclosure document the vendor must provide before signing a contract, covering title, planning, outgoings, easements, building permits in the last 7 years, and other prescribed matters.

Title particulars, mortgages, covenants, easements, planning and zoning information, building approvals and permits in the last 7 years, outgoings (rates, land tax, owners corporation), insurance, services, and notices from authorities.

If the section 32 contains material errors or omissions, the purchaser can rescind at any time before settlement, subject to the vendor showing they acted honestly, reasonably, and that the purchaser is substantially in as good a position.

Private sales have a 3 clear business day cooling-off period from when the purchaser signs. If the purchaser terminates, they forfeit $100 or 0.2% of the price, whichever is more. Not applicable to auctions or purchases within 3 days of auction.

Transfer duty in Victoria ranges from 1.4% to 6.5% on a progressive scale. Principal place of residence rates are lower. Foreign purchasers pay an 8% surcharge. Duty is payable within 30 days of settlement.

First home buyers of homes up to $600,000 pay no duty; concessions apply up to $750,000. The First Home Owner Grant is $10,000 for new homes under $750,000. Eligibility requires residency and prior non-ownership.

Section 27 allows early release of the deposit to the vendor before settlement if the vendor's particulars of title and matters affecting the property are given to the purchaser and the purchaser does not object within 28 days.

Title search, plan of subdivision, property certificate from council (rates), water information statement, land tax clearance, planning property report, owners corporation certificate (if applicable), and zoning/overlay searches.

Owners corporation certificates under section 151 of the Owners Corporations Act disclose fees, special levies, contracts, insurance, minutes, and financial position of the owners corporation. Required for common property lots.

PEXA is the electronic settlement platform used for almost all Victorian settlements. Land Use Victoria requires eConveyancing for most transactions. PEXA coordinates lodgement and funds transfer on settlement day.

Typical contract period is 30, 60, or 90 days. Once the PEXA workspace is ready, settlement is booked for a specific time (usually 10am-4pm). Parties' representatives must be present in the workspace at the scheduled time.

Off-the-plan purchases are governed by special provisions in the Sale of Land Act. Significant amendments in 2019 restrict developer rescission rights under sunset clauses and require notice and consent before termination.

Victoria has an off-the-plan concession that reduces duty by excluding construction value from the dutiable value, provided the buyer signs before construction is substantially complete and the property will be a principal place of residence.

A caveat lodged at Land Use Victoria protects an equitable interest in land. Purchasers often lodge caveats after contract to prevent subsequent dealings before settlement.

Land tax is payable annually on investment property above the tax-free threshold. Victoria introduced a vacant residential land tax and expanded absentee owner surcharge. Sellers provide clearance certificates at settlement.

Foreign purchasers of residential property in Victoria pay an 8% surcharge duty and up to 4% absentee owner land tax. FIRB approval is also required for most foreign purchases.

GAIC is a charge on certain land in Melbourne's growth corridors payable on a land transfer or dutiable event. Vendors typically provide a GAIC certificate as part of the section 32 where relevant.

Licensed conveyancers are permitted to carry out conveyancing in Victoria under the Conveyancers Act 2006. Solicitors also do conveyancing. Complex matters (trusts, commercial, rural, family disputes) benefit from a solicitor.

Penalty interest accrues under the contract (typically 2% above a bank benchmark rate). A notice to complete (usually 14 days) may be served, and on default the innocent party can terminate and sue for damages.

Licensed conveyancer: $700-$1,500. Solicitor: $1,200-$2,500. Complex matters (off-the-plan, trusts, rural, commercial): $2,000-$5,000+. Disbursements add $400-$900.