Property Law FAQ

A Section 32 is a vendor disclosure document required for the sale of land in Victoria under the Sale of Land Act 1962 (VIC). It must disclose specified information about the property including title, planning, encumbrances, and outgoings before signing the contract.

Cooling-off periods vary by state. NSW has a 5-business-day cooling off for residential properties (with limited exceptions). VIC has 3 business days. QLD has 5 business days under the REIQ contract. Cooling-off does not apply to auctions.

The Torrens system is the system of land title registration used across all Australian states and territories. It provides indefeasible title — the registered proprietor has title that is generally protected against unregistered interests.

A caveat is a notice lodged on title claiming an interest in the land. It prevents dealings with the land until the caveat is removed or resolved. Caveats are commonly lodged by mortgagees, purchasers under a contract, and beneficiaries of trusts.

A "subject to finance" clause makes the contract conditional on the purchaser obtaining finance approval by a specified date. If finance is not approved, the purchaser can typically terminate the contract and recover the deposit.

At settlement, the purchase price is paid, the title is transferred to the purchaser, and any mortgages are discharged or registered. In most Australian jurisdictions, settlement now happens electronically through PEXA.

Stamp duty (now called transfer duty in some states) is a state tax on the transfer of land. It is calculated on the purchase price and varies by state. First home buyer concessions and exemptions apply in some states.

A building inspection clause makes the contract conditional on the purchaser obtaining a satisfactory building and pest inspection. If the inspection identifies major defects, the purchaser may be able to terminate or renegotiate.

A strata (or owners corporation) report provides information about a strata-titled property — including the body corporate finances, levies, dispute history, special levies, and any major upcoming works. It is essential for purchasers of apartments and units.

A body corporate (or owners corporation) is the collective of unit owners in a strata-titled building. It manages the common property, sets levies, and enforces by-laws. Body corporates are governed by state-specific strata legislation.

Generally, after exchange (or signing in QLD) you are bound by the contract. You may be able to withdraw during the cooling-off period (where applicable) or if a contract condition is not met. Withdrawing without a legal basis usually means forfeiting the deposit.

A deposit is typically 5-10% of the purchase price, paid on exchange (or signing). It is usually held in trust by the agent or vendor's solicitor and applied to the purchase price at settlement. If the purchaser defaults, the vendor may keep the deposit.

An off-the-plan purchase is a purchase of a property (typically an apartment) before construction is complete or before the title is registered. Off-the-plan contracts have additional disclosure requirements and longer settlement periods.

GST applies to commercial property and new residential premises. Established residential property is generally GST-free. New residential property purchases include a GST withholding obligation on the purchaser to remit GST to the ATO.

An easement is a right held by one landowner to use part of another's land for a specific purpose (such as access or services). Easements are typically registered on title and run with the land.

A restrictive covenant is a contractual restriction on how land can be used, registered on title and binding successive owners. Examples include height restrictions and use restrictions. Some covenants can be modified or removed by court order.

A contract for sale of land is the formal written agreement between vendor and purchaser. Each state has standard form contracts (REIQ in QLD, the Law Society contract in NSW) with state-specific required disclosures and terms.

PEXA (Property Exchange Australia) is the electronic conveyancing platform used for most Australian property settlements. It allows the lodgement of dealings, transfer of funds, and exchange of documents to happen electronically and simultaneously.

A purchaser who cannot settle is in breach of contract. The vendor can issue a notice to complete, which gives a final period to settle. Failure to comply allows the vendor to terminate, retain the deposit, and sue for any further loss.

Quillio reads Section 32 statements, REIQ contracts, and NSW contracts for sale in seconds, flags non-standard provisions, and produces structured advice memos. See /practice-areas/property-lawyers or start a free trial.