What happens after signing contract for house?

You've just signed the contract for a house in Melbourne. The agent is smiling, your heart is still racing, and there's a photo of you in front of the 'Sold' board ready for Instagram.

Then the big question hits: what actually happens now? Are you locked in, can you change your mind, and who does what between now and settlement?

This guide walks through the typical Victorian journey from that first signature through to getting the keys, with a focus on how it really plays out in Melbourne.

That Moment After You Sign

For many buyers, that first evening after signing is a mix of excitement and mild panic. You might be replaying the auction in your head in Brunswick, or wondering if you paid too much for a townhouse in Point Cook.

Legally though, several things start ticking the moment you sign:

Key dates start to run, such as any cooling off period and finance deadline. Your obligations under the contract begin, even if the seller has not yet signed in some cases. You need to move quickly on finance, inspections and engaging a conveyancer.

Let's unpack these one by one.

Are You Locked In, or Can You Still Change Your Mind?

Private Sale and the Cooling Off Period

If you bought by private sale (for example after a midweek negotiation in Glen Waverley), most residential buyers in Victoria have a statutory right to a three clear business day cooling off period from the day you sign the contract.

Key points about cooling off:

Three clear business days means you do not count the day you signed, weekends or public holidays. It usually applies to residential and small rural properties (under 20 hectares). If you cool off, the seller can keep $100 or 0.2 per cent of the purchase price, whichever is greater, and the rest of your deposit must be refunded.

There are important exceptions. The cooling off right does not apply if:

You bought at a publicly advertised auction
You signed within three clear business days before or after the scheduled auction date for that property
The land is used mainly for industrial or commercial purposes or is a larger farming property
The buyer is a company or a real estate agent, or the parties have already signed a contract for the same property on similar terms

In practice, the cooling off period is a safety net, not a planning tool. If you're worried enough to think about using it, you should speak to a conveyancer or solicitor straight away, because the three days can disappear quickly.

Auctions and Pre Auction Offers

If you bought at auction in Carlton on a packed Saturday morning, the position is much firmer. Auction contracts are typically unconditional:

There is no statutory cooling off period for auction purchases. The contract is not usually subject to finance or further inspection unless these have been carefully negotiated and written in beforehand.

Pre auction offers can be tricky. If your signed offer is accepted less than three clear business days before the scheduled auction date, the cooling off period does not apply either.

All of this is why we like to review the contract and Section 32 before you sign wherever possible.

Step One Get Your Conveyancer on the File

Once the ink is dry, your very next move should be to send the full contract and Section 32 vendor's statement to your conveyancer.

A good Melbourne conveyancer will:

Diarise key dates such as your cooling off end time, finance date and settlement date
Explain special conditions in normal language, not legalese
Check that the contract matches what the agent verbally promised, including inclusions such as appliances and light fittings
Start title and property checks to see if there are easements, covenants, owners corporation rules or planning overlays that could affect your plans

At Pearson Chambers Conveyancing, we also flag practical steps such as when to arrange insurance, when to book your removalist, and how far out to organise a final inspection, because these pieces all interact with the legal side.

If you have not engaged a conveyancer yet, this is the moment to do it.

Step Two Deposit, Trust Accounts and Receipts

Most Victorian residential contracts call for a deposit of up to 10 per cent of the price, either on signing or shortly afterwards. Sometimes a smaller holding deposit is paid on the day and topped up later, depending on what was negotiated with the agent.

What you should check:

Where is the deposit held? It is usually held in the real estate agent's trust account or the seller's solicitor's trust account, which is tightly regulated.

How is it paid? These days it is often by electronic transfer, sometimes by bank cheque, or using a deposit bond if agreed.

When does the balance deposit fall due? Make sure the timing fits with your finance process, so you are not scrambling for cleared funds.

If you do cool off within the allowed period, or end the contract under a finance clause, the deposit in trust is generally refunded to you (less any permitted fee), rather than going near the seller straight away.

Step Three Finance Approval and What That Clause Really Does

Many Melbourne buyers sign subject to finance. A standard Victorian contract will often have a finance date of 14 days from the contract date, though 21 days or other timeframes are sometimes negotiated.

During this period you should:

Send the full signed contract to your lender or broker on day one
Respond quickly to any bank requests for payslips, tax returns or extra documents
Keep your conveyancer updated on how the application is progressing

What the finance clause usually means:

If your lender declines your application and you have made genuine efforts, you can often end the contract by the finance date without penalty, provided you follow the steps in the clause, such as giving written notice and evidence of the decline.

If you do nothing, let the date pass and then try to pull out, you might lose that protection.

In real life, buyers often find out the day before the finance date that the bank needs more time. Your conveyancer can usually request an extension, but the seller has to agree. This is one reason we like to keep communication flowing between all parties.

Once the bank issues formal approval, your contract is well on the way to becoming unconditional.

Step Four Building, Pest and Other Checks

Many Victorian contracts include a special condition giving you time to carry out a building and pest inspection on a house, or extra due diligence on an apartment.

During this stage you will typically:

Book a qualified inspector within the first week or so
Attend the inspection if you can, to hear comments first hand
Receive a written report, often the same day

If the report shows minor items that you would expect in a Victorian terrace in Fitzroy some cracked tiles, tired paint, a window that sticks most buyers accept these as part of the age and price of the property.

If the report shows serious issues such as major structural movement, active termites or dangerous electrical work, you may have options:

Request that the seller fixes the problems before settlement
Negotiate a price reduction or other compromise
End the contract under the building and pest condition, if the wording allows and the problems fall within that condition

This is very much a discussion to have with your conveyancer, because the exact wording of the special condition controls what you can do.

For apartments, your checks might also include a review of the owners corporation records and rules, sinking fund position and any known building defects, especially for high rise buildings in and around the CBD.

Step Five What Your Conveyancer Is Doing in the Background

While you are juggling finance and inspections, your conveyancer is quietly working through a long checklist in the background.

Typical tasks include:

Title and plan searches: Confirming the legal description of the property, checking lot and plan numbers, and seeing if there are easements or covenants that limit how you can use the land.

Rate and tax enquiries: Obtaining council, water and sometimes land tax information so that outgoings can be adjusted between you and the seller at settlement.

Checking the Section 32 vendor's statement: Making sure it properly discloses things like planning zones, services, notices and owners corporation details.

Preparing transfer and stamp duty arrangements: Getting the transfer of land and State Revenue Office requirements ready, so stamp duty (land transfer duty) can be paid at settlement or shortly after.

Most settlements in Victoria are now completed electronically through platforms such as PEXA, so your conveyancer will also be preparing the electronic workspace and coordinating with the seller's representative and your lender.

You rarely see this work, but it makes the difference between a smooth settlement and a last minute scramble.

Step Six When Your Contract Becomes Unconditional

Your contract is usually regarded as unconditional once:

The cooling off period has expired (or did not apply), and all key special conditions, such as finance and building and pest, have been satisfied or waived.

From that point:

It becomes very hard to walk away without serious consequences. If you fail to settle, the seller may be able to keep your deposit, charge penalty interest and even sue for any loss on resale.

This is where having a clear understanding of your dates and obligations from the outset gives you peace of mind. A big part of our job is to keep you on track so that reaching unconditional status feels like a milestone, not a threat.

Step Seven Insurance and Planning Your Move

Victorian contracts usually deal with who bears the risk of damage between contract and settlement. Many standard forms say the property remains at the seller's risk until settlement, but variations occur.

Because of this, many Melbourne buyers choose to put building insurance in place from the day after signing or as soon as finance approval comes through, while confirming the exact risk clause with their conveyancer. It is a relatively small cost for a lot of reassurance.

At the same time, you can start the practical planning:

Booking removalists for a date close to settlement, with a little slack if timing moves
Requesting connection or transfer of electricity, gas, internet and pay TV
Thinking about cleaners, painters or trades you might want in before you move in, bearing in mind access will only be available after settlement or if early access is agreed in writing

Step Eight The Lead Up to Settlement

Most Victorian residential contracts have settlement periods somewhere between 30 and 90 days from the contract date, depending on what you negotiated.

During that period, several important pieces come together:

Statement of Adjustments

Your conveyancer prepares or reviews a statement of adjustments, which is a detailed calculation of who pays council rates, water rates, owners corporation fees and similar outgoings up to the day of settlement.

The idea is simple:

The seller should pay for the period they owned or occupied the property. You pay from the settlement date onwards. If the seller has already paid some amounts in advance, an allowance is made, and you effectively reimburse them through the settlement money.

Final Loan Documents and Funds to Complete

Your lender will:

Finalise your loan documents and mortgage
Confirm how much they will advance on settlement
Provide final figures to your conveyancer

Your conveyancer then calculates how much extra you need to contribute (for example from savings), so you can arrange transfers in time for settlement.

Step Nine Your Right to a Final Inspection

In Victoria, buyers have a right to inspect the property at any reasonable time in the week before settlement.

This final inspection is not a new building inspection. It is a chance to check that:

The property is in substantially the same condition as when you signed
All items that should stay, such as fixed appliances, light fittings and curtains listed as inclusions, are still there
Any damage from the seller moving out has been repaired, for example holes in walls where TVs were removed

Picture this: you bought a weatherboard in Coburg. At your final inspection you find the dishwasher gone, even though it looked built in during the campaign, and a large section of the garden has been dug up. That is the moment to contact your conveyancer from the driveway, not shrug and hope for the best.

Sometimes issues can be solved with a quick agreement, such as the seller agreeing to reinstall or compensate. Other times, your conveyancer may recommend delaying settlement or holding part of the funds in trust until the problem is resolved. The exact options depend on the contract and seriousness of the issue.

Settlement Day What Actually Happens in Melbourne

On settlement day, you will probably be at work, packing boxes or buying celebratory croissants, not sitting in a city office with cheques as people once did.

Behind the scenes your conveyancer will:

Meet the seller's representative and your lender in the electronic settlement workspace
Arrange for your lender to provide loan funds and for your own contribution to be ready
Ensure the correct amount is paid to the seller after adjustments
Arrange for the transfer of land and mortgage documents to be lodged, usually electronically

Once everything is balanced, the workspace locks in and settlement is declared complete. At that moment:

The property becomes legally yours
The agent is authorised to release the keys to you
The deposit in trust is released to the seller, unless there is some special arrangement

Your conveyancer will confirm settlement by phone or email. Only then should you collect keys and start moving in.

After Settlement The Days and Weeks That Follow

In the days after settlement you will see a few things happen:

Your lender and your conveyancer will arrange for the title to show you as owner and the bank as mortgagee. In electronic settlements this is often automatic.

Authorities such as council and water will be notified of the change in ownership. You might receive initial rate notices or welcome letters.

You can change locks, organise mail redirection and carry on with any planned renovations.

If you bought an apartment or unit with an owners corporation, you will start receiving information from the owners corporation manager about meetings, fees and rules.

If something feels off a rates bill still in the seller's name, or a notice about land tax you did not expect your conveyancer is still your first call.

If Something Goes Wrong After Signing

Even with the best planning, things can wobble. Common issues include:

Finance delays or declines: If finance is not approved by the finance date, your conveyancer may be able to request an extension, or help you exercise your rights under the finance clause if the bank declines.

Inspection problems: Serious defects found in a building report or at final inspection might give you grounds to end the contract or insist on repairs or money off, depending on how the contract is written.

Settlement delays: If you or the seller cannot settle on the agreed date, the contract may allow a short grace period, followed by penalty interest or default rights.

These situations are very fact specific. This is where generic online advice can be dangerous. A short call or email to your conveyancer with the full story will give you clearer options.

How Pearson Chambers Conveyancing Can Help

Buying a home in Melbourne is not just a legal transaction. It is early morning auctions in drizzle, frantic calls to your broker from the tram, and late night chats with family about schools, commute times and coffee spots.

Our team at Pearson Chambers Conveyancing works with Victorian buyers every day, so we see the patterns:

The buyer who signs an off the plan apartment in Southbank and then worries about sunset clauses and project delays.

The family who buys a house in the outer suburbs subject to finance and needs help negotiating an extension when the bank slows down.

The first home buyer who just wants someone to translate their contract into normal English and tell them what to watch for next week, not in legal jargon.

If you are thinking about signing a contract, or you have already signed and you are now wondering what comes next, we are here to help.

We offer a complimentary review of your Section 32 vendor's statement and contract before you commit, so you can go into the process with your eyes open, knowing what the next few weeks will look like and where the pressure points might be.

For friendly, practical guidance on what happens after signing a contract for a house in Victoria, contact Pearson Chambers Conveyancing:

Email: contact@pearsonchambers.com.au