How to Review a Contract of Sale Before You Sign

 
 

How to Review a Contract of Sale Before You Sign

A Contract of Sale is one of the most important legal documents in any property transaction. Whether you're buying a house, unit, vacant land, or off-the-plan property in Victoria, you need to know what you're signing before you commit. Here's a plain-English guide on what to look for before you sign, how to spot problems, and when to seek advice.

What is a Contract of Sale? A Contract of Sale is a written agreement between a vendor (seller) and a purchaser (buyer). It outlines the terms of the sale, including the price, settlement date, inclusions, and any special conditions. In Victoria, it's often accompanied by a Section 32 Vendor Statement.

Key Things to Check Before You Sign

1. Property Details:

  • Confirm the correct address, title references, and lot/plan details.

  • Double-check the vendor's name matches the title.

2. Inclusions and Exclusions:

  • Are all fixtures and fittings you expect to remain actually listed?

  • Clarify vague phrases like "as inspected."

3. Special Conditions:

  • Review any added clauses beyond the standard terms.

  • Look out for unusual penalties, time limits, or vendor rights.

4. Finance Clause:

  • Is there a subject-to-finance clause? If so, is the time frame realistic?

  • Be cautious if the contract is "cash unconditional".

5. Building and Pest Conditions:

  • Are inspections allowed?

  • Can you withdraw if defects are found?

6. Owners Corporation Disclosure (if applicable):

  • Does the Section 32 include the OC Certificate and current fee information?

  • Are there any known special levies or building issues?

7. Zoning, Overlays and Planning Issues:

  • Check the planning certificate for restrictions (e.g. Heritage Overlay).

  • Confirm future development potential or limitations.

8. Deposit and Payment Terms:

  • How much is the deposit?

  • When is it due, and how will it be held?

9. Settlement Date:

  • Is the settlement date realistic for your situation?

  • Avoid Fridays if possible (here’s why).

When to Get Help You should never sign a contract without a professional review by a conveyancer or solicitor. At Victorian Property Settlements, we offer fast, fixed-fee contract reviews and can provide advice on:

  • Unfair or one-sided conditions

  • Risks hidden in vague wording

  • How to insert protective conditions (e.g. subject to finance or satisfactory building reports)

If you’re going to auction, remember the contract is usually non-negotiable. That makes pre-signing review even more important.

How We Can Help Victorian Property Settlements reviews hundreds of contracts every year. We know what to look for, how to negotiate terms when possible, and how to protect you from future headaches.

Click here to request a contract review before you sign.

Victorian Property Settlements – Trusted for over 25 years by Victorian buyers and sellers. Visit: www.victorianpropertysettlements.com.au