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Saturday morning in Northcote. You’ve come from an inspection, you’re clutching the contract in one hand and a flat white in the other, and the agent is keen to get your signature before someone else swoops in.
Most first buyers check the price, the settlement date and the deposit. The part that causes the real pain tends to be the ‘special conditions’, the extra clauses tucked behind the standard terms. They often look harmless. A few lines. Some legal wording. Maybe even a reassuring sentence like ‘this is standard’.
Sometimes it is standard. Sometimes it’s standard for the seller.
This is general information for Victorian property buyers, not personalised legal advice. If you’re unsure about a clause in your contract, get it checked before you sign.
What special conditions?
A Victorian contract of sale has a core structure. There are the particulars (property, price, deposit and settlement details), the vendor’s Section 32 statement, and a set of general conditions that deal with the usual things that happen between signing and settlement.
Special conditions sit on top of that. They’re extra rules added for a specific sale, often drafted by the vendor’s conveyancer or solicitor (or in the case of new builds, the developer). They might cover access for measurements, what gets left behind, extra fees, who pays for certificates, or a seller’s preferred way of handling delays.
If a special condition clashes with a general condition, the special condition is usually the one that wins. That’s why they matter.
If you want a quick refresher on what a standard Victorian contract is meant to cover before anyone starts adding extra clauses, have a read of essential contract clauses.
Why first buyers get caught out in Melbourne
Buying in Melbourne can feel like a sprint. One weekend of inspections in the inner north, a midweek viewing after work, then an auction in the drizzle where you’re trying to look calm while your heart is doing laps.
Pressure is when mistakes happen. You might be told you need to sign ‘today’ to be taken seriously, or that you can sort the details out later. At auction, you don’t get the luxury of a cooling off period. With a private sale, many residential purchases come with a short cooling off window, yet it’s not a safety net you want to rely on.
The safer move is to spot the risky clauses before your name goes on the page.
Trap 1: A finance clause that doesn’t really let you walk away
A finance clause is meant to give you a clean exit if your lender says no. The tricky part is the wording. Some clauses look protective but are drafted so narrowly that you’re left exposed.
Common problems include:
Deadlines that don’t match bank timing. If the approval window is too short, you can run out of time before the valuation and checks are done.
‘Unconditional approval’ wording. Many approvals come with ordinary lender conditions. If the clause demands a type of approval your bank won’t issue in practice, you can be boxed in.
Strict notice rules. Some clauses require notice in a particular form, by a particular time, with evidence attached. Miss a step and the clause may not help.
A Melbourne situation we see: a buyer signs for a townhouse in Preston on pre approval, then the valuation comes in low. The bank offers finance on different terms. If the clause is tight, the seller may argue you haven’t met the condition and push for the contract to continue.
What helps: a finance clause with a realistic timeframe, sensible wording that reflects how approvals work, and a clear process for giving notice.
Trap 2: Building and pest clauses that are too narrow or too fast
Inspection clauses are one of the best protections you can build into a private sale, yet they can be drafted in a way that makes them hard to use.
Watch for:
A short inspection window. Inspectors book out, especially in busy seasons. If you’ve only got a few days, you might not get anyone through the door in time.
A clause that only covers ‘major structural defects’. That can leave you stuck with costly problems that don’t meet the label, like moisture issues, movement that needs urgent work, or hidden termite damage.
Requirements about who can do the report. If the clause demands a report from a person with a specific registration or licence, make sure your inspector fits the definition.
Tight notice timing. You may need to give written notice by a set time, sometimes with the report attached.
Picture this: you sign for a weatherboard in Coburg on a Thursday night because the agent says there are other offers. The clause gives you five days to complete ‘all inspections’ and give notice. By Friday afternoon, the first available appointment is next week.
What helps: realistic timeframes, clear definitions, and a clause that covers both building and pest inspections where that’s relevant.
Trap 3: Default and penalty clauses that pile costs onto you
Most buyers understand a deposit is at risk if they default. What many don’t realise is that special conditions can widen the net by adding extra costs, extra interest, or extra ‘losses’ on top.
Clauses to be wary of include:
Cost shifting. These try to make you pay the seller’s legal costs, agent costs, or other expenses if the seller claims you’re at fault.
Broad ‘loss’ wording. Some clauses try to cover the seller for almost anything, including the difference if they sell again for less.
Hair trigger defaults. A missed deadline can be treated as a default even where the issue is minor and fixable.
A common Melbourne example: a deposit transfer lands a day late because the bank holds it for routine checks. The seller points to a special condition that says default interest starts straight away. Even if everyone sorts it out, the stress is avoidable.
What helps: narrowing any cost clauses to genuine, proven costs, and making sure the contract gives you a sensible way to fix small issues without being treated as a default.
Trap 4: Early release of the deposit
In Victoria, the deposit is usually held in trust until settlement. That protects both sides. The seller gets comfort that funds are there, and you know the money isn’t gone if the deal falls over because of a problem on the seller’s side.
Special conditions sometimes push for early release of the deposit to the seller. The request can be tied to a formal process (often called a Section 27 statement) or it can be drafted more aggressively in the contract itself.
Why it matters: once the deposit has been released, getting it back can be hard if a dispute arises. The seller may have already used the money.
If the seller serves a formal request for early release, you’ll usually have a set period to respond. Doing nothing can be treated as consent, so it’s not a ‘leave it for later’ document.
Before you agree, ask your conveyancer to walk you through what’s being requested and what it means for your position. Often, keeping the deposit in trust is the simpler, safer option.
Trap 5: Off the plan clauses, sunset dates, and variation rights
First buyers are often drawn to new apartments and townhouses, especially when you can buy with a smaller deposit and settle later. Off the plan contracts can be loaded with special conditions that are a world away from a standard house contract.
Red flags include:
Long timeframes with flexible extensions. The seller may be able to push dates back with limited consequences.
Variation clauses. These can allow changes to plans, finishes, layout, car spaces, storage cages, or common areas.
Sunset dates. A sunset clause sets a final date by which a key milestone must happen, often registration of the plan of subdivision. If the project runs late, the clause may allow the contract to be ended. Victoria has rules that can restrict a developer from ending a residential off the plan contract for their own benefit without your consent or a court order, yet the contract wording still matters and buyers can be blindsided by delay tactics.
If you’re buying off the plan, it’s worth reading up on sunset clauses so you know what the clause is meant to do, and what a fair version looks like.
A Docklands style scenario: you sign and plan around a likely settlement date. The build drags. Your rent keeps ticking. Your lender’s approval expires. Meanwhile the contract gives the developer room to change finishes ‘where reasonably required’, and what you expected at signing is not what you see at handover.
What helps: advice before you sign, careful review of extension rights, and tightening vague wording where possible.
Can you change special conditions after you sign?
Once both parties have signed, you can’t just cross out a clause and pretend it never existed. Changes after signing usually need a written variation agreed by both sides. Sellers often say no, or they use your request to push for a trade off elsewhere.
If you’re wondering what options exist once the ink is dry, this guide on negotiating special conditions after signingexplains the basics in a Victorian setting.
The best time to negotiate is still before you sign, when you’ve got choices and bargaining power.
A quick ‘before you sign’ check for first buyers
Read the special conditions slowly and ask what each one changes in the standard deal.
Check every deadline: finance, inspections, deposit payment, settlement, and notice requirements.
Make sure any promise from the agent (repairs, included goods, early access) is written into the contract.
Don’t assume you can fix it later. A clause that bites after signing is still a clause you agreed to.
When to get help
For most first buyers, it makes sense to engage a conveyancer early, ideally before you bid at auction or before you make a private sale offer. If you’re lining up inspections, making an offer, or thinking about raising your hand at auction, sending the contract across early can save a lot of stress.
A quick review can flag the clauses that deserve a push back, and it can tell you which deadlines will be hard to meet once you’ve signed.
A note from Pearson Chambers Conveyancing
Special conditions aren’t there to scare you. Plenty are reasonable. The problem is the small number that quietly shift risk onto the buyer, right when you can least afford a surprise.
If you’re buying your first home in Melbourne and you’ve got a contract on your kitchen bench, we can help you understand what you’re signing and where you can negotiate. Pearson Chambers Conveyancing offers a complimentary Section 32 contract review.
To book your free contract review, call us on 03 9969 2405 or email contact@pearsonchambers.com.au.
This information is general only and doesn’t take into account your personal circumstances.