What to Watch Out for When Buying an Apartment in Melbourne: Don’t Get Caught Out

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If you’re buying an apartment or unit in a modern building in Melbourne, particularly one built in the last 10 to 20 years, you need to be very careful. We regularly deal with buyers who’ve been rushed or pressured into signing contracts by real estate agents without any proper understanding of what they're buying into. Then we have to be the ones who break the bad news. In many cases, that news comes with a hefty price tag.

The bottom line is this: don’t let anyone push you into signing anything before you understand the full picture. These days, apartments are rarely just four walls and a front door – you're also buying into a complex legal and financial arrangement involving the building, the land, the owners corporation, and often a network of embedded services. Here are the key issues you need to look at closely.

1. The Owners Corporation: Who Runs the Building and What Are You Liable For?

Every apartment in a modern Melbourne building is part of an owners corporation (previously known as a body corporate). The owners corporation manages the common property (lifts, foyers, gardens, car parks, and so on) and sets the rules for how you can use your apartment.

Before you sign, you must read the Owners Corporation Certificate and the accompanying documents required under section 151 of the Owners Corporations Act 2006 (Vic). This should tell you:

  • What fees you're up for (both regular fees and any special levies)

  • Whether there are disputes between lot owners or ongoing legal claims

  • What maintenance or repair works are scheduled

  • Whether the building has a maintenance plan

  • Who manages the owners corporation and how well it's being run

These documents are legally required to be included in the Section 32 Vendor Statement under the Sale of Land Act 1962 (Vic).

2. Cladding, Building Defects and Structural Issues

Many Melbourne apartment buildings constructed between 2000 and 2020 have been affected by cheap construction and poor oversight. Combustible cladding is a major concern, and we’ve seen numerous buildings face millions of dollars in rectification costs.

Don’t assume you’re safe just because the building "looks nice". Ask:

  • Has the building been audited for combustible cladding under the Victorian Cladding Rectification Program?

  • Are there any outstanding defect notices or works?

  • Is there an active builder’s warranty?

You are entitled to know these things. If the selling agent can’t answer or fobs you off, that should be a red flag.

3. Parking Spaces and Storage Cages – What’s Actually on Title?

Don't take the glossy brochure at face value. We regularly see contracts where the parking space or storage cage shown in photos isn’t actually on the title or is part of the common property.

Always check:

  • Does the car park or storage cage form part of the registered title?

  • Is it legally allocated to the lot, or just made available under a licence that can be revoked?

  • Are there any restrictions on how these areas can be used?

These things matter. You could buy thinking you've got secure parking, only to find you’ve just bought a right to park "at the manager’s discretion."

4. Embedded Networks: Locked Into Expensive Services

Many new apartment buildings are built with exclusive supply arrangements for electricity, internet, and hot water, known as embedded networks. While they might seem convenient, they often come with higher costs and fewer choices for residents.

Before you commit, check:

  • Who supplies the electricity and gas to the building?

  • Can you choose your own provider?

  • Are there restrictions or contracts in place?

These arrangements must be disclosed under the Electricity Industry Act 2000 (Vic) and Section 32 of the Sale of Land Act. If they aren’t, walk away.

5. Short-Stay Letting and Building Rules

If you’re planning to live in the apartment, short-stay or AirBnB letting can become a nightmare. Noise, security issues and constant turnover of occupants are all common complaints.

You should always:

  • Review the building’s registered rules under the Owners Corporations Regulations 2018 (Vic)

  • Check if there are restrictions on short-stay letting

  • Understand whether pets are allowed and what lifestyle restrictions exist

Once you move in, it’s too late to change the rules.

6. Essential Safety Measures and Fire Compliance

Modern apartment buildings are required to maintain fire safety systems and submit annual compliance reports. If these aren’t kept up to date, you could end up with major legal exposure or even occupancy issues.

You should ask for:

  • A copy of the most recent Annual Essential Safety Measures Report (AESMR)

  • Any recent fire audit reports

These are especially important for older buildings or those with known issues.

7. Planning Restrictions and Future Developments

Just because your view is great now doesn’t mean it will be in 2 years. Always check:

  • The zoning and overlays that apply to the building and neighbouring land

  • Whether any planning permits have been issued nearby

  • Whether the property is affected by restrictions, covenants, or easements

You can get much of this information from a planning certificate, which should be included in the Vendor Statement.

8. Off-the-Plan Purchases: Delays, Variations and Risks

If you're buying an apartment off-the-plan, you need to be even more cautious. These contracts often include long delays, vague specifications, and sunset clauses that favour the developer.

You must:

  • Review the plans and finishes carefully

  • Understand what can be changed by the developer

  • Be wary of contracts that allow the developer to cancel under Section 10B of the Sale of Land Act

We can’t stress this enough: off-the-plan doesn’t mean risk-free.

9. Don’t Rely on the Sales Pitch

A real estate agent’s job is to get the property sold. They are not acting in your best interests. Many of them are under pressure to get contracts signed quickly and aren’t concerned about what you find out after settlement.

Never rely on anything you can’t see in writing. If the agent promises something, ask for it to be included as a special condition in the contract.

And if there’s anything that really matters to your decision – pet ownership, parking, use of a storage cage, the view, noise restrictions – get it confirmed in writing before you sign.

Final Word: Get Advice Before You Sign

At Victorian Property Settlements, we understand the pressure that buyers are under, and we know how easy it is to get swept up in a sales campaign. But once the contract is signed, your options narrow significantly.

Take the time to send us the contract and Section 32 before you sign. We'll go through it carefully and let you know what you’re really buying into. It’s far better to walk away than to find yourself facing thousands in special levies, building repairs or legal disputes you never saw coming.

If you’d like us to look over your contract before you commit, give us a call or email.