What every buyer and seller needs to know before signing a contract
Buying or selling a property is one of the biggest financial transactions most people will ever make, and it can also be one of the most emotional. There is so much focus on finding the right property, negotiating the right price, and getting the keys, that the legal side of the deal often gets far less attention than it deserves. Yet it is exactly this part of the process, the contracts, the disclosures, the finance timing, and the settlement itself, where deals quietly fall apart.
On this episode of Property, Straight Up, host Mel Dennis sits down with Inna Segal, Director of RET Conveyancing, to unpack exactly where property transactions go wrong and how a bit of preparation, on both sides of the deal, can save buyers and sellers an enormous amount of stress, time, and money. Inna has spent more than ten years working as a licensed conveyancer, the last five as Director at RET, and has seen first hand the patterns that separate a smooth settlement from a disastrous one.
What a Conveyancer Actually Does
Inna describes a conveyancer as an essential partner in any property journey, not an optional extra. Particularly now that electronic settlements and digital titles have become standard across the industry, the days of simply turning up to a bank to exchange cheques are long gone. A good conveyancer reviews the contract at the very start of the process, flags risky clauses, and guides both purchasers and vendors through the legal steps that sit behind every sale.
This guidance role matters because so many of the issues that derail a settlement are entirely avoidable. They simply require someone with the right experience looking closely at the paperwork before problems become expensive.
For Buyers: What to Check Before You Make an Offer
According to Inna, things can go wrong right from the very beginning of the buying process. A savvy buyer has their team in place early, a conveyancer, an agent, and a broker, before they even start inspecting properties seriously.
Understanding the Section 32
One of the first and most important documents in any Victorian property transaction is the Section 32, also known as the vendor statement. This is the legal disclosure document that sets out the title information, council and water rates, owners corporation details if applicable, and any building works that may affect the property.
Inna stresses that a Section 32 needs to be current, generally no older than three to six months. This matters most for properties governed by an owners corporation, since fees, special levies, or upcoming major works can change quickly between meetings. A buyer relying on an outdated Section 32 could be walking into costs they never saw coming, so it is worth asking when the most recent owners corporation meeting took place and whether another is scheduled soon.
Getting Finance Sorted Before You Sign
A surprisingly common mistake, says Inna, is buyers signing a contract with a thirty day settlement without having unconditional finance approval in place. Banks can move slowly, and thirty days passes quickly once the paperwork starts. If finance is not yet locked in, a longer settlement period gives buyers the breathing room they need to get everything organised without the risk of defaulting on the contract.
Do Not Skip the Building and Pest Inspection
Skipping a building and pest inspection removes an important layer of protection. Many defects, such as moisture or mould hidden behind a fresh coat of paint, are simply not visible to an untrained eye. A qualified inspector can identify these issues early, helping buyers avoid unexpected and often significant costs after settlement.
Getting the Settlement Period Right
Settlement timing is a balancing act. Too short, and buyers risk defaulting if finance is not finalised in time. Too long, and circumstances can change, a job loss, a change in income, or a shift in borrowing capacity can all affect a buyer’s ability to settle. Inna recommends thirty, sixty, or ninety days as the standard range, and suggests buyers avoid going much longer than that unless there is a specific reason to do so.
If a buyer cannot settle on time, the consequences can be serious. They may be served with a notice of default, face penalty interest and costs, and in the worst case, risk losing their deposit entirely if settlement does not occur within the default period.
Three Tips for Buyers
Inna’s advice for buyers comes down to three key actions. First, get the contract reviewed early, since this saves enormous headaches later. Second, do not rely on standard clauses. If there is an item you expect to be included with the property, such as a fixture or appliance, make sure it is specifically listed in writing at the time of offer. Third, make sure finance is properly in place before signing, since failing to settle on time is one of the most common and costly mistakes a buyer can make.
For Sellers: Preparing the Property and the Paperwork
Sellers face their own set of risks, many of which come down to disclosure and preparation well before the property hits the market.
Preparing an Accurate Section 32
Vendors need to provide accurate and complete information to their conveyancer when the Section 32 is being prepared. If something is not disclosed, whether deliberately or by oversight, it generally will not appear in the document. A defective Section 32 can lead to a non binding contract, giving the buyer grounds to walk away from the deal entirely and reclaim their deposit, sometimes well into the process.
Discharging the Mortgage
Vendors should understand exactly what their existing loan is secured against well before listing their property. If a mortgage is cross collateralised across multiple properties, a partial discharge may be required, which involves a valuation and takes time. Inna recommends speaking to your bank and broker early in the process to avoid finding yourself short of funds at settlement because the lender requires part of the proceeds to pay down the loan.
Section 27: Early Release of Deposit
A lesser known feature of the Victorian property process is Section 27, which allows a vendor to apply for early release of the deposit, typically held by the selling agent, before settlement. Victoria is the only state where this mechanism exists. It is not automatic. The buyer has twenty eight days to consider the request, and a valid objection, most commonly when the vendor owes more than eighty per cent against the property, can prevent the release.
Importantly, if the purchaser agrees and signs the Section 27 early, the deposit can be released well before the twenty eight day period elapses. Vendors who are relying on deposit funds for their own purchase should raise this with their conveyancer as soon as contracts are being prepared, and should have their bank discharge letter ready to go.
Disclosing Renovations and Building Works
Many sellers are unaware that building works completed without a registered builder, including DIY renovations or work done by a tradesperson outside formal council processes, may need to be disclosed in the Section 32. Vendors should think back over any work done to the property in the last seven years and flag it with their conveyancer, since failing to disclose it can give a buyer grounds to end the contract.
Vacant Possession and Tenanted Properties
One of the more difficult scenarios Inna has encountered involved a tenant who was simply unable to vacate in time, causing the entire sale to collapse because the vendor could not deliver vacant possession as promised. Even with the required ninety days notice, a tenant who does not move out can end up in a VCAT dispute, leaving the vendor in breach of the contract.
Inna’s advice is straightforward. If there is any uncertainty about whether a tenant will vacate in time, mark the contract as subject to a lease rather than promising vacant possession. Increasingly, investors are choosing to give notice and wait until a property is vacant before listing it for sale, which also tends to present better for marketing purposes and photography, giving more flexibility for inspections and ultimately a stronger result on price.
Three Tips for Sellers
For sellers, Inna’s advice centres on three priorities. First, prioritise certainty over price. The highest offer is not always the best one once risk is taken into account, so it is worth discussing the merits of each offer with your agent rather than defaulting to the largest number. Second, make sure your documentation is complete, accurate, and as Inna puts it, bulletproof. Third, plan your settlement timing carefully, taking into account whether the property is tenanted or whether you need time to vacate yourself.
When Should You Bring in a Conveyancer?
Inna’s answer is simple: as early as possible. Rushed documentation tends to be lower quality, and a Section 32 prepared under pressure days before an open for inspection is far less reliable than one prepared with proper time and care. Given how much money is typically spent on staging, photography, and advertising a property, Inna makes the point that the legal documentation deserves just as much attention, since a property cannot legally be sold without it.
Final Advice
Asked what one thing buyers and sellers should do before committing to anything, Inna’s answer comes back to having the right team in place early: a conveyancer, a broker, and an agent, so that proper advice is in hand before anyone signs on the dotted line. It is a simple principle, but one that can save a great deal of money, time, and stress when it matters most.
Inna and the team at RET Conveyancing offer a free Section 32 contract review, along with checklists for both buyers and sellers. Details are available in the show notes for this episode of Property, Straight Up.
This article is based on the Property, Straight Up podcast episode “The Mistakes That Sink Property Settlements (and How to Avoid Them),” featuring Inna Segal, Director of RET Conveyancing.
You can watch and listen below
Video – https://youtu.be/DN_AWZrJgqA
Audio – https://www.buzzsprout.com/2609119/episodes/19388842
Download Checklists – https://zfrmz.com.au/eQsU5iAENIbx0S6JQXlU
