Introduction
You’ve found your dream home in Melbourne. The real estate agent says the contract and section 32 statement are “standard.” You’re eager to move forward.
Stop.
Before you sign anything, you need to understand what you’re actually agreeing to. At Oakhill Lawyers in Carlton, we’ve seen too many buyers discover serious problems after signing a contract—when it’s too late to back out without significant financial loss.
Here’s why getting legal review before you sign could save you thousands—or even tens of thousands—of dollars.
What are you actucally signing
The Contract of Sale
The contract of sale is the legal document that binds you to purchase the property. It includes:
– The purchase price
– Settlement date
– What’s included in the sale
– Your obligations and the seller’s obligations
– Conditions of the sale eg. subject to finance or a building/pest inspection
– Any special clauses or contingencies
The Section 32 Statement (Victoria)
In Victoria, the Section 32 statement (or “vendor’s disclosure statement”) is a legal document the seller must provide. It includes:
-title particulars;
-mortgages and encumbrances;
-easements;
-zoning and planning information;
-outgoings and rates;
-owners corporation information;
-building permits;
-notices or orders affecting the property; and
-restrictions on use or development.
Important: The Section 32 is designed to protect buyers by forcing sellers to disclose certain information.
The Dangers Of Signing Without Review
Missing Red Flags in Standard Clauses
Real estate contracts often include clauses that seem “standard” but can expose you to significant risk:
– “as is” or “as seen” clauses: These might limit your recourse if the property has hidden defects
– Settlement date clauses: Unrealistic settlement timeframes could cause you to lose your deposit
– Special conditions: Some conditions might be impossible to meet, putting your deposit at risk
– Chattels vs fixtures: Disputes about what’s included (built-in appliances, light fittings, etc.) can cost thousands to resolve
A lawyer will flag these and explain what they actually mean for you.
Title Issues
The Section 32 will mention title issues, but it’s technical and easy to miss:
– Easements: Other people or companies might have legal rights to cross or use parts of your property
– Restrictive covenants: Rules that limit what you can do with the property (e.g., “no commercial use”)
– Caveat: Someone has registered a legal interest in the property that might affect your purchase
– Encroachments: Neighbouring fences, driveways, or structures that cross onto the property
Missing these could cost you thousands in unexpected repairs, legal disputes, or even the inability to sell or develop the property later.
Here are some common issues we have come across:
Building and Structural Issues
The Section 32 requires the seller to disclose some issues, but:
– Not all problems are disclosed (some sellers may not be aware of them or aware they need to disclose them)
– Older properties may have latent defects not yet visible
– Building code compliance issues might not be mentioned
– It is possible the vendor did ‘owner builder’ type works that require them to provide a s137b report and owner builder warranty insurance.
Body Corporate and Strata Issues (if applicable)
For units and townhouses, the Section 32 includes body corporate information:
– Special levies coming up (new roof, façade work, etc.)
– Disputes within the body corporate
– Insurance claims history
– Budget constraints
Failure to understand these could mean you’re facing unexpected large bills post-settlement.
Zoning and Planning Restrictions
– Can you extend the house?
– Can you renovate?
– Are there development restrictions?
– Is the property in a heritage area?
A lawyer will explain what you can and can’t do with the property.
Environmental Issues
Some Section 32s will disclose known environmental issues. But did you know about:
– Flooding risk
– Contaminated land history
– Bushfire risk zone
– Proximity to noxious industries
What Happens During A Contract Review?
When you bring a contract to Oakhill Lawyers, we:
- Read it thoroughly — We review every clause, not just the “big” terms
- Check the Section 32 — We identify potential issues and what they mean for you
3.Check the title — We advise about easements, covenants, and other issues
- Advise on risks — We explain what could go wrong and how to protect yourself
- Negotiate changes — If needed, we contact the seller’s lawyer to negotiate better terms
- Advise on conditions — We help you understand what conditions you should add (like building inspection contingency)
Can't You Just Check It Yourself?
Technically, yes. But property law is complex, and small details have big consequences:
– You might not understand what a particular clause means
– You might not know to search for hidden issues
– You might miss red flags that a trained lawyer immediately spots
– You might negotiate away important protections without realising it
How Much Does A Contract Review Cost?
At Oakhill Lawyers, we offer fixed-fee contract reviews so you know exactly what you’ll pay. The cost is typically modest—often just a few hundred dollars.
Compare that to:
– Losing your deposit because of a missed settlement clause
– Discovering a $200,000 strata levy after settlement
– Uncovering a title issue that prevents you from selling or developing the property
– Legal disputes with the seller over what was included
A contract review is one of the best investments you can make when buying property.
Our Recomendation
Always get a contract and Section 32 reviewed by a lawyer before signing. This is true whether you’re:
– A first-time buyer
– An experienced investor
– Buying a house, unit, or apartment
– Purchasing a straightforward property or something complex
It’s not paranoia—it’s protection. And given the amount of money involved, it’s essential.
Ready To Protect your Purchase?
If you have a property contract or Section 32 that needs reviewing, contact Oakhill Lawyers in Carlton today.
Call Clare: 0421 656 662
Email: clare@oakhilllawyers.com.au
We’re available in Carlton, Rosanna, or we can come to you.
We’ll review your contract thoroughly, explain everything clearly, and make sure you understand exactly what you’re agreeing to before you sign.
About Oakhill Lawyers
Based in Carlton, Oakhill Lawyers specialises in property law and conveyancing throughout Melbourne. We’re committed to being accessible, friendly, and thorough in protecting your property interests.
