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Frequently asked
Questions, answered plainly.
Practical answers on contracts, settlement and the obligations that shape an Australian property transaction. General in nature — for advice on your matter, please get in touch.
Buying property
- What does a conveyancer actually do?
- A conveyancer manages the legal transfer of property from one party to another. The work includes reviewing the contract and vendor's statement, advising on special conditions, conducting title and statutory searches, attending to identity verification, preparing transfer documents, liaising with the lender and other side, calculating settlement adjustments, and effecting settlement through PEXA. At conveyancing.com the work is supervised by a qualified Australian legal practitioner.
- When should I engage a conveyancer?
- Engage a conveyancer before you sign — ideally as soon as you have a contract you are seriously considering. Pre-contract review allows special conditions, finance and due-diligence matters to be addressed before you are bound. Engaging only after signing limits the protections that can be negotiated.
- What is a Section 32 statement?VIC
- A Section 32, or vendor's statement, is the disclosure document a Victorian vendor must give a purchaser before the contract is signed. It discloses matters such as title particulars, encumbrances, rates and outgoings, planning information, owners corporation details and any notices affecting the land. A defective Section 32 can give the purchaser a right to rescind in defined circumstances.
- Can I buy at auction subject to finance?VIC
- No. Contracts entered at a public auction in Victoria cannot be made conditional on finance, building inspection or any other due diligence. Your finance, inspections and contract review must be completed before bidding.
Selling property
- What do I need to prepare before listing?VIC
- In Victoria, the vendor's statement and contract of sale should be prepared and finalised before the property is offered for sale. Outstanding rates, owners corporation information, planning certificates and any title encumbrances need to be obtained so the disclosure is complete and accurate at the point of signing.
- When are funds released to me as the vendor?
- Net sale proceeds are released on the day of settlement, once funds and title have been exchanged on PEXA and any payout to your discharging mortgagee has cleared. Funds are typically available in your nominated account on the settlement date, subject to your bank's processing times.
Settlement and PEXA
- What happens at settlement?
- At settlement the purchase price (net of adjustments) is paid to the vendor, any existing mortgage on the property is discharged, the new mortgage (if any) is registered, and title is transferred to the purchaser. All of this now occurs electronically on PEXA, with funds and documents exchanged in a single workspace and the registry updated within minutes of completion.
- What is PEXA?
- PEXA (Property Exchange Australia) is the national electronic conveyancing platform used by lawyers, conveyancers, lenders and land registries to settle property transactions. It replaces the former paper settlement process and is mandated for most standard residential transactions in the participating jurisdictions.
- How long does settlement usually take in Victoria?VIC
- Standard Victorian residential contracts settle 30 to 60 days after the contract date, with 60 days a common default. The actual period is whatever the contract specifies; off-the-plan and commercial settlements can be substantially longer.
- What are settlement adjustments?
- Settlement adjustments apportion periodic outgoings — typically council rates, water rates and, where applicable, owners corporation fees — between the vendor and purchaser as at the settlement date. The purchaser reimburses the vendor for any amounts paid in advance that relate to the period after settlement, and the vendor allows for amounts unpaid up to settlement.
Costs and timing
- What costs are involved beyond the purchase price?VIC
- Typical additional costs in Victoria include land transfer (stamp) duty, Land Use Victoria registration fees, lender fees, building and pest inspection fees, owners corporation information fees where applicable, and the conveyancing fee itself. First home buyer and off-the-plan concessions may apply depending on eligibility.
- When is the deposit paid and where is it held?
- The deposit is generally paid on signing or within a short period specified in the contract. It is held in the listing agent's trust account, or otherwise in accordance with the contract, until settlement, at which point it forms part of the purchase price paid to the vendor.
FIRB and foreign purchasers
- Do I need FIRB approval?AUS
- Foreign persons generally require approval from the Foreign Investment Review Board before acquiring an interest in Australian residential real estate, and may be restricted to new dwellings or vacant land. Application fees and additional duty surcharges typically apply. The position should be assessed before contracts are signed, as unconditional contracts entered without approval can expose the purchaser to civil penalties.
- Are temporary residents treated the same as non-residents?AUS
- Temporary residents are subject to FIRB rules but with different conditions to non-residents — typically permitted to acquire one established dwelling as a principal place of residence, subject to approval, and required to sell on departure. Specific eligibility depends on the visa held at the time of acquisition.
SMSF and investment property
- Can an SMSF purchase residential property?AUS
- A self-managed superannuation fund can acquire residential property, but the structure is tightly constrained. The property must satisfy the sole-purpose test, cannot be acquired from or leased to a related party, and any borrowing must be through a compliant limited recourse borrowing arrangement using a bare trust. The transaction documents must be in place before the contract is signed.
- What records does an investor need to keep?
- Acquisition records, settlement statements, depreciation schedules, loan documentation and records of any capital improvements should be retained for the life of the asset and at least five years after the asset is sold, for capital gains and audit purposes.
Commercial and off-the-plan
- Why are off-the-plan contracts different?VIC
- Off-the-plan contracts are entered before the lot exists on title, often years before settlement. They include sunset dates, variation rights for the developer, owners corporation rules that are not yet finalised, and a different stamp duty assessment basis. The vendor's statement is necessarily limited, so the contract terms themselves carry more of the risk allocation than in an established-property sale.
- Why are commercial leases more complex?
- Commercial transactions involve GST, the assignment or grant of leases, outgoings reconciliations, make-good obligations, and — in Victoria — the Retail Leases Act where the premises fall within its scope. Due diligence typically covers existing tenancies, rent reviews, permitted use under the planning scheme, and any environmental or essential safety measure obligations.
This page provides general information only and does not constitute legal advice. For guidance on a specific matter, contact our team or browse the Information Centre.