In Victoria, your lawyer (or licensed conveyancer) is responsible for the entire legal process from before contract through signing and settlement. The principal tasks include:

• Contract review — going through the Contract of Sale and the Vendor’s Statement (commonly known as the “Section 32”) clause by clause to identify risk areas;
• Negotiating special conditions — adding protective clauses such as “subject to finance”, “subject to building and pest inspection” or extended settlement, depending on the buyer’s needs;
• Title and planning checks — reviewing the certificate of title, easements, restrictive covenants, planning use and whether the land is affected by bushfire, flood or heritage overlays;
• Stamp duty and first home buyer concessions — calculating land transfer duty and confirming eligibility for the First Home Owner Grant (FHOG) or duty concessions;
• Settlement preparation — preparing the transfer documents, liaising with the lender, and calculating adjustments (rates, water and land tax);
• PEXA electronic settlement — completing the title transfer and the funds settlement simultaneously through PEXA in conjunction with the vendor’s lawyer and both parties’ banks;
• Post-settlement follow-up — confirming payment of stamp duty to the SRO, registration of the title transfer with Land Use Victoria, and notification to the local council and water authority of the change of ownership.

For overseas buyers or transactions involving complex finance arrangements, the lawyer will also assist with the FIRB application, calculation of foreign purchaser additional duty and offshore funds compliance advice.

The Contract of Sale and the Section 32 Vendor’s Statement are the two key documents to review prior to signing. Key matters include:

• Title information — registered owner, lot and plan number, land area, and any mortgages or easements;
• Zoning and overlays — review the Planning Certificate to confirm permitted use, height limits, and whether the land is affected by heritage, bushfire (BMO), flood (LSIO) or industrial contamination overlays;
• Council rates, water rates and land tax — confirm any arrears and adjustment arrangements;
• Building permits and defects — whether building permits have been issued in the past seven years and whether the domestic building insurance certificate is in order;
• Special conditions — finance condition, building and pest inspection condition, settlement date and default provisions;
• Deposit arrangements — amount, payment timing and trust account;
• Chattels and fixtures — clearly identifying items included in the sale;
• Tenancy status — if the property is tenanted, the terms of the lease and arrangements for transferring the bond;
• Cooling-off period — for private sales, the buyer may withdraw within 3 clear business days of signing (subject to exceptions including auction purchases and contracts signed within 3 days before an auction), forfeiting 0.2% of the purchase price or AUD 100, whichever is greater;
• Adequacy of disclosure — failure by the vendor to disclose material information may constitute a breach of section 32, entitling the purchaser to rescind the contract.

 Since 2018, the great majority of residential property settlements in Victoria have been completed electronically through PEXA. A typical timeline is as follows:

• After contract signing — both parties’ lawyers create a PEXA workspace and enter the transaction details;
• 14 days before settlement — the buyer’s lawyer follows up with the lender to confirm loan approval and obtain loan documents;
• 7 days before settlement — the buyer completes the stamp duty assessment and arranges settlement funds;
• 3 days before settlement — adjustments are checked (rates, water and land tax are apportioned to the settlement date);
• Within 7 days before settlement — the buyer conducts a pre-settlement inspection to confirm the condition of the property complies with the contract;
• Settlement day — both parties’ lawyers and the lenders sign electronically through PEXA, with the funds transfer and the title transfer occurring simultaneously;
• After settlement — the agent is notified to release the keys, the title transfer is registered with Land Use Victoria, and the council and water authority are notified of the change of ownership.

Points to note: (1) if the pre-settlement inspection reveals damage or items left behind, written notice should be issued through the lawyer immediately, and where necessary settlement should be deferred and compensation negotiated; (2) overseas funds should be remitted in good time to avoid delays caused by exchange rate fluctuations or bank compliance reviews; (3) deferred settlement attracts penalty interest, calculated at the rate stipulated in the contract.

Australia regulates the acquisition of real property by foreign persons under the Foreign Acquisitions and Takeovers Act 1975 (Cth) and through the Foreign Investment Review Board (FIRB). Key recent policy settings (current FIRB and Treasury announcements should be checked for any updates) include:

• General restriction: foreign buyers may, in principle, only purchase new dwellings or vacant land (for self-build with completion within 4 years), and FIRB approval must be obtained for each transaction;
• Established dwelling ban: from 1 April 2025, the Commonwealth Government has imposed a two-year ban (until 31 March 2027) on the purchase of established dwellings by foreign persons, with very limited exceptions (such as developer redevelopment and certain temporary visa holders’ principal residences). We recommend that overseas buyers confirm the latest position with their lawyer before signing a contract;
• FIRB application fees — tiered by property value, ranging from several thousand to tens of thousands of dollars for higher-value properties;
• Victorian Foreign Purchaser Additional Duty — an additional 8% surcharge on top of standard stamp duty;
• Victorian Absentee Owner Surcharge — an annual land tax surcharge payable by absentee owners;
• Vacant Residential Land Tax — extended state-wide across Victoria from 2025, applying to residential property left vacant for more than 6 months in a year.

Procedure: (1) sign a contract conditional on FIRB approval; (2) lodge the FIRB online application and pay the application fee; (3) only proceed to settlement after a “no objection notification” has been issued; (4) register foreign buyer status with the SRO and pay the additional duty. We recommend that overseas buyers consult a lawyer before making an offer to confirm eligibility and tax cost.

Residential tenancies in Victoria are governed by the Residential Tenancies Act 1997 (Vic). The major reforms which commenced on 29 March 2021 significantly strengthened tenants’ rights. The principal legal avenues for common disputes are:

• Bond — must be lodged with the Residential Tenancies Bond Authority (RTBA) within 10 business days of receipt; at the end of the tenancy, the parties agree on the refund. If there is a dispute, the rental provider must apply to VCAT for an order to retain any portion of the bond, failing which the bond must be returned in full to the renter;
• Repairs — distinguish between “urgent repairs” (covering 14 categories including hot water, gas leaks and serious water leaks) and “non-urgent repairs”. Urgent repairs must be attended to immediately by the rental provider, failing which the renter may arrange repairs up to AUD 2,500 and seek reimbursement; non-urgent repairs must be requested in writing and completed within 14 days;
• Rent increases — not permitted during a fixed term; for periodic agreements, rent may only be increased once every 12 months on at least 60 days’ written notice, and the renter may apply to Consumer Affairs Victoria to assess whether the proposed increase is excessive;
• Termination — both parties must give a Notice to Vacate or Notice of Intention to Vacate based on the prescribed grounds and notice periods. The 2021 reforms abolished “no specified reason” terminations, and rental providers must now rely on a statutory ground;
• VCAT jurisdiction — the great majority of residential tenancy disputes are heard in VCAT’s Residential Tenancies List, which has modest filing fees and a relatively streamlined procedure.

Practical advice: where a dispute arises, communicate in writing as a first preference and preserve evidence (photographs, emails, text messages); where appropriate, contact Consumer Affairs Victoria for conciliation; failing which, an application can be made directly to VCAT for determination. Commercial tenancies are governed instead by the Retail Leases Act 2003 (Vic) and the dispute resolution mechanisms of the Victorian Small Business Commission (VSBC).