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The complete guide to conveyancing and property settlement in Melbourne - covering Section 32 vendor statements, cooling-off periods, the REIV/LIV contract, PEXA electronic settlement, pre-settlement inspections, and what to do when things go wrong.
Your conveyancer has gone quiet. Settlement is five days away. The adjustment statement just landed with an extra $9,000 you didn't budget for, and nobody is returning your calls.
This is not a worst-case scenario. It's a Tuesday in Melbourne's property market.
Conveyancing is the part of buying property that most people underestimate until it goes wrong. The legal process that sits between signing the contract and collecting the keys involves more than a dozen pieces of Victorian legislation, coordination between lenders, government agencies, and opposing legal representatives, and a settlement platform that runs on strict electronic timelines. Get it right and you barely notice it. Get it wrong and you're looking at delayed settlements, penalty interest, or costs that dwarf whatever you saved by skipping professional help.
This guide covers the full conveyancing process from engaging a professional through to settlement day. It explains what your Section 32 should contain, how Victoria's cooling-off period works, what to watch for in contracts, and what happens when things go wrong.
Conveyancing is the specialist legal work involved in transferring property ownership from seller to buyer. It covers contract review, title searches, Section 32 analysis, settlement coordination, and electronic lodgment through PEXA.
In Victoria, this process sits within a framework of legislation including the Sale of Land Act 1962, the Transfer of Land Act 1958, the Conveyancers Act 2006, the Building Act 1993, the Duties Act 2000, and the Owners Corporations Act 2006, among others. Your conveyancer needs to understand how these interact for your specific purchase.
The real consequence of getting this wrong is financial. Missing a covenant on title, overlooking unapproved building works, or failing to register your transfer correctly can cost tens of thousands of dollars. Professional fees of $880 to $1,500 buy you protection against errors that are expensive and sometimes impossible to reverse [Consumer Affairs Victoria].
For the vast majority of standard residential purchases, a licensed conveyancer handles everything. They review the Section 32, prepare and exchange contracts, run title searches, manage PEXA settlement, and calculate adjustments.
A solicitor becomes necessary when the transaction involves legal disputes, unusual title complications, trust or SMSF structures, or development purchases where contract interpretation goes beyond standard conveyancing work. Solicitors can provide legal advice and represent you in court. Conveyancers cannot.
Both carry mandatory professional indemnity insurance, which protects you if they make errors. The coverage differs: a conveyancer’s policy covers “conveyancing work” as defined under the Conveyancers Act 2006, while a solicitor’s covers a broader range of legal services [VLSB+C].
Your conveyancer sits at the centre of the transaction. They review the Section 32 vendor statement, prepare or review the contract of sale, conduct title and planning searches, coordinate with your mortgage broker on finance clause timing, confirm stamp duty lodgment via the Digital Duties form with the State Revenue Office Victoria, calculate settlement adjustments, and manage the PEXA electronic settlement workspace.
What they don’t handle: building inspections, mortgage advice, tax planning, or property valuations. These sit with other specialists. A good conveyancer will tell you when to involve them.
The Section 32 vendor statement is a mandatory disclosure document required under the Sale of Land Act 1962 (Vic). The vendor must provide it to the buyer before the buyer signs the contract of sale [Sale of Land Act 1962, s32].
Sections 32A through 32I of the Act specify what must be included: title details and plan of subdivision, any mortgages or charges, covenants and easements affecting the land, zoning and planning information, council and water rates, owners corporation details (if applicable), building permits issued within the preceding seven years under the Building Act 1993 (Vic), service connections, bushfire-prone area declarations, and a due diligence checklist [Sale of Land Act 1962, ss32A–32I].
If the vendor fails to disclose required information, the buyer may have the right to rescind the contract before settlement under section 32K of the Act.
Easements are the most common trap. A drainage easement running through the section of your block where you planned to build a deck only becomes a problem after you’ve settled and paid. Your conveyancer should flag these before you commit emotional energy to a property.
Owners corporation issues affect apartments and townhouses. Low sinking fund balances, pending special levies, defect litigation, and flammable cladding remediation can add tens of thousands in unexpected costs. The owners corporation certificate in the Section 32 should disclose these, but the details matter.
Unapproved building works transfer liability to the buyer after settlement. A pergola, extension, or deck built without a permit becomes your problem once you own the property. Council enforcement, rectification costs, and insurance claim impacts all follow.
Never accept an agent’s assurance that the Section 32 “looks standard.” Have your conveyancer review it before you attend a second inspection or start planning around the property.
A conveyancer can identify problems within minutes that most buyers would miss entirely. Real issues discovered in reviews include: land boundaries not matching the marketed block, renovations completed without council approval, new houses missing occupancy permits, and significant defects in common property [LPLC].
The cost of a pre-contract Section 32 review runs $250 to $500. The cost of missing an issue can run well beyond $50,000. For auction purchases, this review must happen before auction day. There is no cooling-off period after an auction, so all due diligence needs to be done in advance.
Most residential property sales in Victoria use the contract of sale produced jointly by the Law Institute of Victoria and the Real Estate Institute of Victoria. This contract contains standard general conditions covering deposits, settlement timing, adjustments for rates and outgoings, default remedies, risk allocation, and pre-settlement inspection rights.
The contract was updated in September 2025, with amended general conditions, revised execution clauses, and changes to settlement time provisions. The update widened electronic settlement time windows, removed the $5,000 withholding mechanism for minor property damage, and amended post-contract termination provisions. If you’re buying now, confirm your contract is on the current 2025 edition [LPLC; REIV VicForms].
Key protective conditions include General Condition 16 (buyer’s right to inspect the property within seven days before settlement) and provisions around finance, building, and pest inspection clauses. Vendors can delete or modify general conditions through special conditions. If a general condition has been removed, you may have lost a protection you didn’t know existed.
Special conditions are additional clauses inserted by the vendor or negotiated between the parties. Some are harmless (cleaning obligations, fixture exclusions). Others remove buyer protections: deleted inspection rights, compressed timelines, limited remedies for defects.
Any special condition that limits your rights beyond the standard contract terms is a red flag. Ask your conveyancer specifically: “Has anything been deleted from the general conditions? Are there special conditions I should be concerned about?”
Never sign a contract without professional review. Not even if the agent says it’s standard.
Victoria’s cooling-off period gives most residential property buyers three clear business days to withdraw from a private sale contract after signing [Sale of Land Act 1962, s31].
“Clear” means the day you sign does not count. Business days exclude weekends and public holidays. If you sign on a Friday, your three business days are Monday, Tuesday, and Wednesday.
Withdrawing costs a penalty of 0.2% of the purchase price (or $100, whichever is greater). On a $750,000 property, that’s $1,500 deducted from your deposit, with the rest refunded [Sale of Land Act 1962, s31].
The cooling-off period does not apply if you buy at auction, or within three business days before or after a publicly advertised auction. It also excludes company purchasers, licensed estate agents, commercial or industrial property, and large rural land over 20 hectares. Auction purchases are unconditional and binding from the fall of the hammer [Consumer Affairs Victoria].
Written notice must be given to the vendor, the vendor’s conveyancer or solicitor, or the vendor’s estate agent before the period expires.
Your finance clause gives you a set number of days to secure unconditional loan approval. If you don’t obtain approval before the clause expires, you may lose the right to terminate the contract and become bound to settle regardless.
Your conveyancer and mortgage broker need to work in parallel, not one after the other. The conveyancer monitors the finance clause deadline, confirms with the broker that approval is tracking, and flags risks early. Both parties, and your lender, need to be PEXA-ready well before settlement.
Settlement adjustments catch many buyers off guard. The principle is straightforward: the seller pays for the period they owned the property, and the buyer pays from settlement day onwards. In practice, this means adjusting for prepaid council rates, water rates, owners corporation fees, and in some cases, land tax.
Your conveyancer prepares an adjustment statement that shows the purchase price minus your deposit, plus or minus these adjustments, to arrive at the final balance payable at settlement.
The shock comes when this statement arrives two to four days before settlement with an extra $3,000 to $10,000 the buyer never budgeted for. Request a draft adjustment statement at least seven to ten days before settlement. If adjustments exceed $5,000 for a standard residential purchase, ask your conveyancer to explain every line item.
Since 1 August 2019, Victoria has required virtually all property transactions to settle electronically through an Electronic Lodgment Network [Land Use Victoria]. PEXA (Property Exchange Australia) is the dominant platform. Your conveyancer, the vendor’s conveyancer, and both lenders work within a digital workspace to exchange documents and transfer funds.
On settlement day, PEXA retries the settlement process at regular intervals. Your conveyancer manages the entire process. You don’t interact with the platform directly. Your role is to ensure funds are available in your nominated account and to remain contactable by phone.
Aim for morning settlement. Same-day completion by late afternoon is still acceptable, but Friday afternoon settlements carry extra risk because PEXA support operates on business days only. If a technical issue arises on Friday at 4pm, there is no weekend support to resolve it.
When PEXA confirms settlement, your conveyancer notifies you and you coordinate key collection with the real estate agent.
General Condition 16 of the standard REIV/LIV contract gives you the right to inspect the property once within seven days before settlement [REIV/LIV Contract, GC 16].
The best strategy is to book this inspection at least five business days before settlement. This gives you time to raise issues, notify your conveyancer, and pursue a resolution before money changes hands. Inspect after previous occupants have vacated, not while they’re still in the property.
You’re comparing the property’s condition to what you saw at contract signing. Look for new damage, removed fixtures or fittings, missing inclusions listed in the contract, incomplete repairs that were agreed as special conditions, and changes to gardens, fences, or exterior areas.
Bring your phone for photos and a checklist. Test taps, lights, and appliances. Check that blinds, locks, windows, and fly screens are intact. If special conditions required cleaning or specific works, verify those are complete.
Document everything with photos, videos, and written notes. Contact your conveyancer the same day, in writing. Do not contact the agent directly about the issue.
Your options include requesting vendor repairs before settlement, negotiating a price reduction, seeking compensation if the contract permits, or delaying settlement. The timeline pressure is real. Discovering damage one or two days before settlement limits your negotiation window dramatically.
This is also where your conveyancer’s availability matters. If settlement falls on a Friday or near a public holiday, and your conveyancer is unreachable, you have a problem with no easy fix.
Skipping Section 32 review. Buyers who rely on the agent’s assurance that everything is standard miss easements, unapproved works, and owners corporation liabilities that can cost $50,000 or more. A 15-minute professional review catches what buyers miss entirely.
Not confirming final settlement figures early enough. Conveyancers who provide adjustment statements two days before settlement leave buyers scrambling for funds. Always request a draft statement a minimum of seven to ten days before the settlement date.
Attempting DIY conveyancing. You can legally do your own conveyancing in Victoria. But you won’t have professional indemnity insurance if you make errors, and you’ll need to manage PEXA access, interpret contract law, lodge Digital Duties forms with the State Revenue Office, and register your title correctly. The time spent learning the process typically exceeds the money saved. Professional fees of $880 to $1,500 are insurance against catastrophic errors.
Letting your conveyancer go silent. Buyers who wait passively while their conveyancer stops responding near settlement put themselves at risk. If settlement is within seven days and you haven’t heard back within 24 hours, follow up. If repeated follow-ups get no response, escalate to the practice manager.
If the vendor can’t settle, you can issue a Notice of Default giving them 14 days to settle. If they still can’t, you can demand specific performance (forcing the sale through court) or terminate the contract and claim damages.
If you can’t settle, the consequences are severe. The vendor keeps your deposit (typically 10% of the purchase price) and can pursue legal action for: the price difference if they resell at a lower price, penalty interest accruing daily, legal fees, accommodation costs, and other losses caused by your failure to settle.
If your conveyancer makes an error, their professional indemnity insurance should cover your losses. State Revenue Office errors on Digital Duties forms can trigger manual assessments that delay settlement for weeks. Document everything in writing. This becomes your evidence if you need to make a claim.
The key across all scenarios: communicate early. If you know settlement will be delayed, tell your conveyancer immediately so they can negotiate with the other side before penalties start accruing.
Professional fees range from $880 to $1,500 for a licensed conveyancer and up to $2,500 for a solicitor. Add $600 to $800 in disbursements covering PEXA fees (around $141 for a standard single-title transfer, per PEXA FY26 pricing), title searches, registration, and verification of identity. Budget $1,500 to $3,500 all-in for a standard residential purchase. Get itemised written quotes and confirm whether auction contract review is included.
A legally required disclosure document under the Sale of Land Act 1962 (Vic). It contains title details, easements, covenants, zoning, outgoings, building permits, and owners corporation information. The vendor must provide it before you sign the contract. Missing or overlooked issues in the Section 32 can cost $50,000 or more. Always get it professionally reviewed.
For most standard residential purchases, a licensed conveyancer handles everything you need. Solicitors are necessary for complex situations involving legal disputes, unusual title problems, trust or SMSF purchases, or development transactions. Both carry professional indemnity insurance.
Three clear business days for private sale contracts, starting the business day after you sign. Does not apply at auction or within three business days before or after an auction. Penalty for exercising: 0.2% of purchase price. Written notice required. This is your safety net in a private sale.
It depends on who caused the delay. If the buyer is responsible, the vendor can charge daily penalty interest, claim legal fees, and ultimately issue a Notice of Default. If the vendor causes the delay, the buyer can issue a Notice of Default giving 14 days to settle, then demand specific performance or terminate. If a conveyancer’s error caused it, their professional indemnity insurance should cover your losses.
Adjustments reimburse the seller for rates, water, and owners corporation fees they’ve prepaid beyond settlement. Budget $3,000 to $10,000 above your expected settlement costs. Request a draft adjustment statement seven to ten days before settlement to avoid last-minute cash flow surprises.
Confirm the property matches its condition at contract signing. Look for new damage, removed fixtures, missing inclusions, and whether agreed repairs are complete. Book the inspection at least five business days before settlement. Photograph everything. Notify your conveyancer the same day if you find problems.
Legally, yes. Practically, it’s high-risk. You won’t have professional indemnity insurance if you make errors, and you’ll need to handle PEXA access, Victorian legislation, State Revenue Office requirements, and contract interpretation without professional support. Missing a single contract clause can cost more than the $880 to $1,500 you’d spend on a professional.
If you’d like to talk it through, we can map out the next step.
No obligation. Just context.
It all starts with a confidential conversation.
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