What Was the Property Condition at the Time of Contract? Why It Matters at Settlement

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Why Property Condition at Contract Matters

When you sign a contract to buy property in Victoria, you're not just agreeing on price—you’re locking in the condition of the property as inspected.

Under the standard Law Institute of Victoria (LIV) contract of sale, the vendor must deliver the property in the same condition it was in on the day of sale, fair wear and tear excepted.

So when it comes time for the final inspection, how can you confirm the property hasn’t deteriorated? You can’t—unless you’ve recorded what it looked like at the time of signing.

The Relevant Contract Condition

Under General Condition 11.1 of the LIV contract:

“The vendor must deliver the property to the purchaser at settlement in the same condition as it was on the day of sale, except for fair wear and tear.”

If the condition is materially worse at settlement, the purchaser may:

  • Delay settlement

  • Demand rectification

  • Claim compensation

  • In serious cases, rescind the contract (if breach is substantial)

But this only works if the purchaser has clear, documented evidence of the property’s state on the day of sale.

What You Should Do When You Sign a Contract

We recommend the following steps to all Victorian purchasers when entering a contract:

1. Take Date-Stamped Photos and Videos

  • Internal and external views

  • Fixtures and fittings

  • Gardens, fences, outbuildings

  • Any known defects or areas of concern

2. Ask the Agent to Confirm Inclusions in Writing

General phrases like "as inspected" are vague. Request clarification on:

  • Window furnishings

  • Appliances (dishwasher, air conditioner, etc.)

  • Light fittings

  • Mounted TVs or brackets

  • Furniture, garden features, or sheds

3. Note Any Damage in the Contract or Section 32

  • Cracked tiles, dents in plaster, broken fencing, etc.

  • Ensure these are documented in the file, even if you’re happy to accept them as-is

4. Raise Anything That Looks Like a Building Modification

If you see signs of building works (new decks, garages, kitchen upgrades), tell us immediately. Owner-builder works and planning permits must be disclosed under the Building Act 1993 (Vic).

Why This Matters at Final Inspection

Without clear evidence of the property’s condition at the time of sale:

  • It’s your word against the vendor’s

  • You may struggle to prove damage was new

  • Items removed might be excused as “not included”

Final inspection rights are only as strong as your records.

We explore this more fully in our related article:
📘 Final Inspection Before Settlement – Compare to Contract Condition

David Dawn’s Advice

“I’ve seen far too many buyers lose leverage at final inspection because they didn’t document the property properly on day one. A few simple photos can save you thousands—and a lot of stress.”

Checklist: What to Document at Contract Date

  • Kitchen, bathrooms, floors, walls, ceilings

  • Heating and cooling systems

  • Window furnishings and light fittings

  • Appliances and mounted systems

  • Gardens, fences, external features

  • Outbuildings, sheds, garages, driveways

  • Anything promised or verbally discussed

  • Signs of renovation or unauthorised works

  • Date and time of inspection

Work With a Conveyancer Who Covers This From Day One

At Victorian Property Settlements, we don’t just step in at the end. From the moment you engage us, we’re protecting your interests at every stage—including documenting your rights at the point of contract.

📍 Victorian Property Settlements – Trusted by Victorian buyers for over 25 years
☎ 03 9783 0111 | ✉ david@quick32.com
🌐 www.victorianpropertysettlements.com.au