Buying Property in Victoria, Australia

Buying Property in Victoria, Australia

For many people around the world, one of the happiest and most significant moments in life is purchasing property. For the average person, their home is often their greatest asset. Today, I will explain the process of buying property in Victoria, Australia—from choosing a location to legal settlement.

Choosing the Right Property and Area

Before buying, consider:

• Which suburb or area you want to live in

• The features the property must have (e.g. number of bedrooms, proximity to schools or transport)

Additional Costs When Buying Property

In addition to the purchase price, expect these extra costs in Victoria:

• Stamp Duty (State Revenue Office)

• Title Registration Fee (Land Titles Office)

• Council Rates

• Land Tax

• Water Rates

• Building & Pest Inspection

• Legal Fees

• Insurance

• Moving costs

Cooling-Off Rights After Signing a Contract

If purchasing a residential property by private sale (not auction), you may cancel the contract within 3 business days of signing. This does not apply to auctions, industrial/commercial property, land over 20 hectares, company buyers, or licensed estate agents.

To cancel, the buyer must notify the seller or agent in writing. A small penalty may apply (whichever is greater between $100 or 0.2% of the price).

Types of Properties

• Established Homes: Older homes—check with a building consultant if planning renovations.

• Apartments/Townhouses: Managed by owners corporations, with additional fees.

• Farms: Ensure water and sewerage access is approved.

• Vacant Land: Check zoning and building permit eligibility.

Renovated Properties

If the property has been extended or renovated in the last 10 years:

• Ensure planning/building permits are included in the contract

• Contact the local council for any demolition orders or illegal works

• Builder’s warranty insurance should be provided if applicable

Owner-Builder Homes

An owner-builder is someone who:

• Built or renovated their own home (either themselves or by hiring tradespeople)

• If the work cost over $16,000, Victorian Building Authority (VBA) approval is required

• If done within the last 6 years, a defects report and insurance must be included in the sale

Buying an Apartment or Townhouse

Check:

• Noise levels inside and outside

• Odors from nearby food outlets or bins

• Parking availability

• Owners corporation records (fees, meetings, disputes, legal cases, planned repairs)

What Is the Owners Corporation?

All apartment/townhouse owners are part of the owners corporation and must pay fees and follow rules. They vote on matters affecting the building.

Buying Off-The-Plan (OTP)

Buying OTP means signing a contract before the property is built.
Benefits:

• Stamp duty concessions may apply (for eligible buyers)

• Potential capital gains by the time the property is completed

• Customizing interior choices (depending on the builder)

Risks:

• Actual build may differ from plans

• Poor quality materials may be used

• Building delays make finance and moving planning difficult

• Property value may fall before construction finishes

Sale Price and Statement of Information

Agents must provide a Statement of Information detailing:

• Expected price

• Sale data for 3 similar nearby properties

• Median suburb price

This helps buyers evaluate whether the asking price is reasonable.

Open Inspection

Before signing, visit the property to check condition, layout, neighborhood, repairs needed, etc. For new homes, there’s a warranty period. For older homes, buyers accept the property “as is” after inspection.

Building and Pest Inspections

Buyers can make their offer conditional on:

• Building inspection (checking for structural issues)

• Pest inspection (termites, etc.)

Qualified inspectors provide detailed reports on problems and repair costs.

Pre-Contract Legal Review

Ask the agent for the Section 32 and draft contract. Your lawyer will review the title and legal issues. Once your offer is accepted, your lawyer can insert special conditions, e.g.:

• Subject to finance approval

• Subject to satisfactory inspection reports

Before Settlement

Your lawyer will:

• Arrange transfer of ownership

• Notify relevant authorities

• Coordinate with your bank to release funds

• Advise you to take out home and building insurance

Revisit the property 1 week before settlement to confirm it’s vacant and unchanged.

Settlement (Final Payment & Title Transfer)

Settlement usually occurs 60–90 days after contract signing. Your lawyer will:

• Pay the balance to the seller

• Pay stamp duty, legal fees, and adjustments

• Use the PEXA system to complete electronic transfer of title

Only lawyers can access the PEXA system, so legal support is essential.

Final Thoughts

At Solomon Legal, we’ve successfully helped clients buy property and transfer titles in Victoria for over 15 years. Property is the biggest investment for most people—we promise to assist you with honesty and care.

Disclaimer: This post is for general information only. Legal advice should be tailored to your individual situation.