A Contract of Sale is a legally binding document that sets out the terms and conditions for buying or selling real estate.
In Victoria, the contract becomes legally enforceable once both parties sign it and the cooling-off period (if applicable) has passed.
Think of it as the roadmap for the entire property transaction: it covers the purchase price, settlement date, and any conditions that must be met before the sale is finalised.
In Victoria, the vendor’s (seller’s) solicitor or conveyancer usually prepares the Contract of Sale. This ensures the document complies with state property law.
As a purchaser, it’s critical to have your own independent conveyancer or lawyer review the contract before signing. This protects your interests and makes sure you fully understand all terms and obligations.
Never sign a Contract of Sale without having it reviewed by a qualified conveyancer or solicitor who represents your interests.
Victorian property law requires specific information to be included in every Contract of Sale:
Most residential sales include a 3-business-day cooling-off period, allowing buyers to withdraw.
Settlement typically takes place 30 to 90 days after signing, unless another date is specified in the contract. This period allows time for:
On settlement day, the balance of the purchase price is paid, and legal ownership officially transfers to the buyer.
Always go through every clause and ask questions.
Independent representation is essential.
These can have major impacts on your rights and obligations.
Confirm your finance before committing.