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You’ve just come from a packed Saturday inspection in Brunswick. The agent is upbeat, the street feels right, and the contract is waved in front of you like it’s just a formality.
Price. Deposit. Settlement date. Tick, tick, tick.
Then there are the extra pages, usually called ‘special conditions’. They can look harmless, yet they’re often the part that changes the real deal. Get one wrong and you can end up paying more at settlement, losing a right you thought you had, or being locked into tight deadlines you can’t meet once your lender and the real world get involved.
What special conditions are (and why you should care)
Victorian contracts have a standard set of terms that cover the usual things: settlement, adjustments, default and so on. Vendors can then add special conditions to deal with a particular property or a particular sale.
Sometimes they genuinely help. They might spell out how access works for a final inspection, deal with a tenancy, or explain how the deposit will be held.
Other times, they push risk and cost onto the buyer. That’s why we often say special conditions can be hidden superheroes only when you know what they do and you’re comfortable with the trade offs.
Special conditions can override the standard terms
This is the trap: you can be familiar with the ‘usual’ Victorian contract and still miss the one clause that changes everything.
A special condition can replace the standard position in the general conditions. So if you’re relying on something you’ve heard, like ‘there’s a cooling off period’ or ‘the vendor covers that’, double check whether the contract in front of you has rewritten the rule.
Where the trouble tends to hide
In Melbourne, we often see special conditions:
attached at the back, after the signing page
tucked into an annexure with a bland title
written in a way that only makes sense when something goes wrong (a finance delay, a settlement hiccup, a missing certificate)
If a sentence starts with ‘the purchaser must’ or ‘at the purchaser’s cost’, it’s worth slowing down.
Clauses that can cost Melbourne buyers real money
Every contract is different, yet a few themes keep showing up. Here’s what to watch for, and what you can do about it.
Tight finance dates and fussy notice rules
A finance clause can be your safety net. It can also be drafted so narrowly that you trip over it.
Look for:
a short finance approval date that doesn’t match your lender’s timeline
a requirement to give notice in a very specific way (to a named address, by a set time, with documents attached)
wording that makes you ‘satisfied’ with finance even if approval is conditional
This is where subject to finance conditions need to be read like instructions, not reassurance. If your broker is saying ‘three weeks’, a fourteen day deadline is pressure.
This is also the place to check what the clause means by ‘finance approval’. Some buyers assume a pre approval letter is enough. Lenders don’t always see it that way, especially if the bank still needs to confirm income documents, do a valuation, or review the property type (small apartments and some off the plan purchases can be treated differently). If the contract expects you to be ‘approved’ by a date, make sure that date lines up with what your lender can realistically deliver.
A common scenario: you buy in Glen Waverley, the bank orders a valuation, access gets pushed back a few days, and the finance date suddenly feels impossible. Often the fix is simple: a more realistic date and a clear notice method.
Late settlement costs: not always just interest
Late settlement happens for ordinary reasons. A bank can be slow with documents, a discharge of mortgage can take time, or a settlement booking can fail and need to be rescheduled.
Contracts usually deal with delay through interest on the outstanding amount. Some special conditions go further and add fixed daily fees or extra legal costs if settlement is pushed back. If you see stacked fees, ask why they’re there and whether they can be removed or narrowed.
It’s also worth checking what counts as a ‘default’ under the contract. Some clauses let the vendor issue formal notices and start charging interest quickly once the due date passes, even if the delay is only a day or two and it’s caused by banking admin. That doesn’t mean you’re doomed. It does mean you should plan your lender paperwork early, keep your broker in the loop, and avoid leaving key tasks to the week of settlement.
There’s also a Victorian twist many buyers don’t expect: late settlement interest can increase the amount of stamp duty payable. It’s another reason to treat settlement dates and delay clauses as budget items, not just ‘legal stuff’.
Shifting outgoings to the buyer
Outgoings are normally adjusted at settlement so each party pays their share for the relevant period. The fight starts when a contract tries to make you contribute to charges that relate to the vendor’s ownership.
Land tax is the classic example. Victorian contracts have moved away from sharing land tax as part of ordinary adjustments, yet we still see special conditions trying to pass it on to the buyer. The safest move is to get advice on any clause that shifts a tax or charge that feels like it belongs to the vendor.
Fixtures and fittings: ‘included’ until they’re not
You fall for the pendant lights in a renovated Coburg townhouse, or the integrated dishwasher in a Richmond apartment, and you assume they stay. Then the special conditions quietly carve out what the vendor can remove, or tighten the definition of what counts as a fixture.
If you care about an item, don’t leave it to assumptions. Make sure it’s clearly listed as included in the contract, or have the wording changed.
Owners corporation and special levies
For apartments and townhouses with an owners corporation, special conditions often deal with certificates, fees, and adjustments.
The big risk is special levies. A building might be planning major works, like lift upgrades, façade repairs, or rectification after an engineer’s report. If a levy has been struck, you want the contract to be clear about who pays it. If it’s only being discussed, you want to understand what you’re stepping into and whether you can renegotiate.
This is where buyers can get caught in inner city blocks near tram lines: the place looks perfect on the day, yet the meeting minutes tell a very different story.
A small tell: if the contract or owners corporation documents mention upcoming works, ask whether any quotes have been obtained and whether a levy has already been voted on. Even when the vendor isn’t hiding anything, buyers can underestimate how quickly a levy can become payable once the decision is made.
Unapproved works and sweeping disclaimers
Melbourne homes collect DIY projects over time: decks, pergolas, converted garages. Contracts sometimes include ‘buyer accepts’ style clauses that try to make you take the risk of missing permits or approvals.
Councils can require work to be brought up to standard, and insurers can ask questions after an incident. If a disclaimer is broad, treat it as a red flag. Ask what documents exist for the works, and consider a building inspection where it matters to your decision.
Early release of the deposit
Vendors may ask for the deposit to be released before settlement, especially if they’re buying elsewhere. A special condition might try to make that automatic.
Early release can be appropriate with the right safeguards. It can also increase the pressure on you if there’s a dispute later, since the money is no longer sitting in a trust account. This is a clause worth reviewing carefully.
Auctions, private sales, and off the plan contracts
The way you buy in Melbourne changes what you can negotiate.
At auction, you sign an unconditional contract. There’s no cooling off. You want the contract reviewed before you bid, and any changes agreed before auction day.
In a private sale, you often have more scope to negotiate special conditions. A short cooling off period may apply in some situations, with exceptions that catch buyers around auction campaigns and pre auction offers. Treat signing as a real commitment, then you won’t be relying on a right that may not be there.
Off the plan purchases need extra care. The contract is longer, the timelines are longer, and the special conditions can be heavier on disclaimers and timing. If you’re buying in the CBD, Docklands or Southbank, pay close attention to sunset clauses and to any clause that limits your ability to respond if the build is delayed or the design changes.
A calm way to review a contract when you’re under pressure
You don’t need to become a lawyer to be a careful buyer. You do need a simple routine.
Start with the Section 32 and the title details: easements, covenants, notices, services.
Then read every special condition and mark anything that changes timeframes, money, or responsibility.
Check the ‘moving parts’: settlement date, vacant possession, what’s included, any tenancy details.
If you want a deeper guide to the review process, our article on what to look out for in a contract is a helpful companion.
A few questions worth asking before you sign
When you’re tired, excited, and trying to beat another buyer, it helps to have a short list.
‘Which special conditions change my deadlines, and what happens if I miss them?’
‘Are there any clauses that make me pay the vendor’s costs, fees, or taxes?’
‘If settlement is delayed, what will I owe, and is any extra duty likely to apply?’
‘For apartments, is there anything in the owners corporation material that points to major works or a levy?’
You’re not being difficult by asking. You’re checking the rules of the game before you commit.
What you can ask to change
Vendors can say no, yet many clauses are negotiable when they’re raised early and clearly.
Buyer friendly changes often include:
more workable finance dates and a clearer notice process
an inspection condition with enough time to act on the report
removing fixed daily penalties that sit on top of interest
clearer wording around owners corporation levies and special levies
a tidy list of fixtures and fittings, so there’s no argument later
If you’re bidding at auction, the same issues still matter. The difference is timing: you need the review done before you bid.
Get the contract checked before you’re committed
Agents will often say ‘it’s the standard contract’. In Victoria, the standard terms might be familiar, yet special conditions are where the vendor can rewrite the risk.
A quick review can pick up the clause that shifts costs, cuts timeframes too fine, or removes a protection you were relying on.
If you’re looking at a property in Melbourne and want a second set of eyes, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review.
Email contact@pearsonchambers.com.au and we’ll talk you through the contract in plain language before you sign.
This article is general information only and does not take the place of legal advice. For guidance that fits your situation, speak with a qualified conveyancer or lawyer.