If you’re buying property in Victoria, it’s worth knowing what’s changed and how these amendments could affect your purchase
Here’s a rundown of the key updates for buyers.
Particulars of Sale – Settlement Timing for Off-the-Plan Sales
For off-the-plan purchases, the settlement period has been extended from 14 days to 21 days after the vendor gives notice that the plan of subdivision has been registered or an occupancy permit has been issued (whichever comes later).
That extra week gives buyers – and their lenders where applicable – more breathing room to get their finances in order ahead of settlement. It’s a practical change that reflects the realities of coordinating finance approvals and other settlement requirements.
General Condition 21 – Building Reports
The updated contract now specifies more clearly who is qualified to carry out a building report. Previously, the contract referred to a “building practitioner or an architect.”
Under the new version, a building report must be prepared by one of the following:
â—Ź a registered building surveyor
â—Ź a registered building inspector
â—Ź a registered domestic builder, or
â—Ź an architect.
If you’re making your purchase conditional on a satisfactory building report, it’s essential that your inspector holds one of these qualifications. Getting this wrong could affect your right to terminate the contract – even where a significant defect has been identified.
General Condition 31 – Loss or Damage Before Settlement
Under the old contract, buyers had the ability to withhold up to $5,000 from the purchase price at settlement if minor damage had occurred to the property between the date of sale and settlement. That mechanism has now been removed.
The vendor’s obligation to hand over the property in the same condition as at the date of sale (fair wear and tear excepted) remains in place. However, buyers can no longer delay settlement or hold back any portion of the purchase price if the property isn’t in the required condition on settlement day.
If there is a dispute about the condition of the property, buyers will need to either negotiate with the vendor or pursue a claim after settlement has taken place.
What This Means for You
These changes are a timely reminder of just how important it is to obtain proper legal advice before signing a Contract of Sale. The details matter – from understanding your rights around building inspections to knowing where you stand if something goes wrong before settlement.
At Tisher Liner FC Law, our property team regularly acts for buyers across a broad range of residential and commercial transactions. If you have questions about the updated contract or need advice on a property purchase, we’re here to help.
Contact us on (03) 8600 9333 or visit tlfc.com.au to get in touch with our property team.
