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If you’ve spent a few Saturdays hopping between open homes, you’ll know the feeling. You’re standing on a front porch in Richmond or Coburg, the agent is chatting about ‘strong interest’, and you’re trying to make sense of a contract on your mobile before the next inspection.
The pressure is real. So is the fine print.
A Victorian contract of sale is a standard document, yet it’s also full of moving parts. Some clauses protect you. Some shift risk onto you. As a first home buyer, you don’t always know which is which until it hurts your budget (or your sleep).
If you’re weighing up your first purchase, read this with one goal in mind: spot the traps early, ask the right questions, and get the contract checked before you sign. That’s how you buy with confidence, not crossed fingers.
People often talk about grants and first home buyer opportunities in Victoria. Those can help. Still, the contract is where most expensive surprises begin.
A quick reality check before we get into the traps
In Victoria, the seller usually prepares the contract and the Section 32 Vendor Statement (often called a ‘vendor statement’). That doesn’t mean it’s dishonest. It does mean the starting point is written to complete the sale on the seller’s terms, unless you negotiate changes.
Also, many buyers rely on the cooling off period as a safety net. It exists for some private sales, yet it’s not a free undo button. In Victoria, cooling off is generally three clear business days from the day after you sign, and there’s a cost to step away (the penalty is the greater of $100 or 0.2 per cent of the price). Cooling off also isn’t available for auctions, and there are other carve outs, including some sales connected to an auction campaign.
The safest plan is still simple: get the contract reviewed before you sign.
Now, let’s talk about the five traps that catch first home buyers in Melbourne.
Trap one: Special conditions that quietly dump liability on you
Most Victorian contracts have a set of standard terms, often called the general conditions of contract. Then there are ‘special conditions’, which are extra clauses added for a particular sale.
Special conditions are not automatically bad. Some are routine. The problem is the ones that rewrite the deal in a way that makes you pay for things you never planned for.
Red flags to watch for
Look closely at any special condition that says the property is sold ‘as is’, or that you accept the property with all defects. Also watch for clauses that try to make you responsible for:
unapproved works or compliance issues
disputes with neighbours, an owners corporation, or the council
damage discovered after you sign, even if it existed before
extra costs tied to settlement, beyond the usual adjustments
What this looks like in real life
A typical Melbourne example is an older inner north terrace that’s had ‘clever’ changes over time. A rear studio, a bathroom squeezed under stairs, a deck added off the kitchen. The home looks great in photos. If a special condition says you accept all unapproved works and will handle any council action, you could inherit a headache that takes months to sort and costs far more than you expected.
What to do before you sign
Ask your conveyancer to translate each special condition into plain English, then flag what can be removed or softened. Many special conditions are negotiable, especially when they go beyond normal sale terms.
Trap two: Section 32 gaps and stale documents
The Section 32 Vendor Statement is meant to disclose key information about the property. It can include title details, planning and zoning information, outgoings, notices, and, for apartments and townhouses, owners corporation material.
The catch is not always what’s in the pack. It’s what’s missing, outdated, or easy to misunderstand.
Owners corporation certificates used for Section 32 can be prepared well before the sale. That means the pack you see at the first inspection might not reflect new levies, new disputes, or new maintenance problems that arise before settlement.
The Melbourne apartment trap
You buy a one bedroom in Southbank or a townhouse in Box Hill. The advertised owners corporation fees look manageable. Then you discover, after you sign, that a special levy has been struck for balcony repairs, lift upgrades, cladding work, or insurance increases. Your share might be due quickly, and it can reshape your budget overnight.
What to ask for
A thorough review usually includes:
checking the title and plan for easements or restrictions
reading the owners corporation certificate and key minutes
looking for notices from council or other authorities
confirming what outgoings apply, and whether any arrears exist
This is where the right essential property searches matter. Searches can reveal things that don’t jump off the page when you skim a vendor statement at the kitchen bench.
A practical tip
If you’re buying into an owners corporation, ask whether an updated certificate will be provided before settlement, or arrange to inspect the register and records. It’s a small step that can save you a nasty surprise.
Trap three: Renovations and permit history that don’t line up
Melbourne has no shortage of homes with beautiful extensions. Think a kitchen opened to the yard in Preston, a converted garage in Glen Waverley, or a second storey added in Keilor. Renovations can add value and comfort. They can also bring risk if permits and approvals are missing.
Your contract may include warranties and statements, yet those don’t always tell the full story. If works were done without proper approval, you might face:
a council enforcement process
the cost of retrospective permits, reports, and certificates
costly rectification work if something doesn’t meet building standards
limits on future renovations, since records are incomplete
What to look for during inspections
You don’t need to be a builder to spot signs that extra checks are needed. Ask questions when you see:
a bathroom or laundry in a space that looks like it used to be a store room
a garage turned into a bedroom or study
a large deck or pergola attached to the house
an extension that changes the roofline or structure
A building inspection is still a good idea, yet it won’t replace a permit and approval check. Your conveyancer can ask for the paperwork that matches what you can see with your own eyes.
Trap four: Owners corporation rules and money you didn’t budget for
Owners corporation issues don’t just affect apartments. Many townhouse estates across Melbourne have shared driveways, gardens, gates, or private roads. Fees and rules can be reasonable. They can also be a shock.
Beyond levies, the bigger risk is buying into a building where money hasn’t been set aside for long term maintenance. When the sinking fund is thin, owners can be hit with special levies.
Common surprises that land after you sign
urgent repairs to roofs, balconies, basements, or common plumbing
higher insurance costs after claims
disputes between owners that drag on and cost money
building defects in newer developments, where responsibility is unclear
Minutes matter. So do the financials. If you’re not sure what you’re reading, that’s normal. This is one of the clearest reasons to have your own reviewer, not the seller’s, and to insist on independent legal representation throughout the purchase.
A small habit that helps
When you get the owners corporation pack, don’t just scan the fees page. Read the last 12 months of minutes and look for repeating themes: water ingress, lift breakdowns, fire services, disputes, major quotes. Repeating problems often mean repeating invoices.
Trap five: Settlement and default clauses that punish small delays
Settlement feels like a date on the calendar, right up until it isn’t. Banks request more documents. A valuation gets delayed. Someone in the chain asks for an extension. Suddenly you’re staring at default clauses that talk about interest, notices, and penalties.
Most Victorian contracts allow the seller to charge interest if settlement is late and the buyer is at fault. The interest rate is set by the contract, and it can be steep. Even a short delay can add up when it’s calculated on a large purchase price.
What first home buyers miss
settlement timing needs to suit your lender, not just your moving plans
you need enough lead time to meet any loan conditions
‘subject to finance’ and other conditions should be drafted properly, not scribbled in as an afterthought
How to protect yourself
A conveyancer can often help by:
checking the default interest clause and explaining your exposure
building realistic timeframes, based on your finance and property type
negotiating a settlement date that gives breathing room
keeping you on track with the steps that trigger bank approval
If you’re buying off the plan or dealing with a complex title, you may need more time than you think.
The cooling off period: useful, yet not your plan A
Let’s return to cooling off, because it’s one of the biggest misunderstandings we see.
Cooling off can help when you’ve made a fast decision and need to step back. It still costs money, and it won’t feel great to lose that amount just because the paperwork raised issues you didn’t spot earlier.
There’s also the practical reality: the best properties move quickly. If you rely on cooling off to ‘buy time’, you may sign a contract you wouldn’t have signed with calm advice and a proper review.
A better rhythm is:
get the contract and vendor statement as early as you can
send it straight to your conveyancer
ask for changes before you commit, not after
A Melbourne focused ‘before you sign’ checklist
If you only do a few things, do these:
Ask for the contract and Section 32 before the inspection weekend gets busy, then line up a review early.
Treat special conditions as negotiable, and push back on any clause that shifts unknown risk onto you.
Match visible renovations to permits and approvals, especially for extensions, decks, and garage conversions.
For apartments and townhouses, read the owners corporation financials and minutes, not just the fee summary.
If you want a broader guide, keep this property buying checklist handy and tick off tasks as you go.
One more layer of protection: title insurance
Some buyers ask about extra protection for issues that are hard to spot before settlement, such as certain title defects, unapproved works, or boundary problems.
Title insurance isn’t right for every purchase, and it has limits and exclusions. Still, for some first home buyers, title insurance protection can be worth discussing as part of your risk plan, especially when you’re buying an older home with a long renovation story.
Buying with confidence in Melbourne
The aim isn’t to make you fearful. It’s to help you slow the process down just enough to make good decisions.
Melbourne buyers face real pressure: auction campaigns, short turnarounds, competitive offers, and contracts that can feel like a wall of text. A calm review turns that wall into a set of clear choices. What’s standard? What’s risky? What needs a change? What should stop you from signing?
If you’re about to buy your first place, we can help you read the fine print and make sure you’re not stepping into a problem you didn’t bargain for.
Speak with Pearson Chambers Conveyancing
If you’re looking at a property in Melbourne or across Victoria, contact Pearson Chambers Conveyancing for a complimentary Section 32 contract review before you sign. We’ll explain the contract in plain English, flag the problem clauses, and guide you on sensible next steps.