Buying a house in Victoria: a 7-step guide from offer to settlement
Buying a home in Victoria has its own rhythm, set by the Section 32 vendor statement you receive before signing and by whether you buy privately or at auction. This guide walks through the whole purchase in seven steps, from working out what you can afford to getting the keys, and links to the detailed Victorian guides on cost, duty and cooling-off rather than repeating them.
Step 1: Work out your budget and total cost
Before inspecting, get a realistic picture of what a purchase costs beyond the price. The largest added cost for most buyers is land transfer duty (Victoria's land transfer duty, its name for stamp duty): on a $700,000 home the standard duty is $37,070, though an owner-occupier or first home buyer usually pays less. On top of duty, budget for your conveyancer's fee and disbursements, the Land Services Victoria registration fee, a building and pest inspection, and loan costs. The full breakdown at several prices is in the conveyancing cost Victoria guide.
If this is your first home, check your duty savings early: an eligible first home buyer pays no land transfer duty up to $600,000, with a concession to $750,000, and a new home can attract a $10,000 grant. See the first home buyer Victoria guide.
Step 2: Review the Section 32 and contract
In Victoria the seller must give you a signed Section 32 vendor statement before you sign the contract. It discloses the property's title, easements and covenants, planning zone and overlays, owners corporation details, outgoings and more. This is the moment to have your conveyancer or lawyer review both the statement and the contract, because on a private sale you can still negotiate or walk away, and at an auction there is no window to do so afterwards. Engaging your conveyancer at this step, not after signing, is the most valuable thing a Victorian buyer can do. The full sequence is in the Victorian conveyancing process guide, and every disclosure in the statement is explained in the Section 32 vendor statement guide.
Step 3: Make an offer or bid at auction
How you commit depends on how the property is sold:
- Private sale: you make an offer through the agent and negotiate price and terms. Nothing is binding until you sign, and a private sale carries a cooling-off period.
- Auction: if you are the successful bidder you sign on the spot with no cooling-off period. That means your contract review, finance and inspections must all be finished before you raise your hand.
Decide which path you are on early, because it changes how much has to be done before you commit.
Step 4: Sign the contract and pay the deposit
When terms are agreed, you sign the contract of sale and pay the deposit, commonly up to 10% of the price, usually held in trust until settlement. In Victoria signing is the point of commitment (subject to any cooling-off period on a private sale), rather than the separate exchange step used in some other states. Make sure your building insurance and finance are lined up, because from here the transaction moves toward settlement.
Step 5: Use your cooling-off period
On a private sale you then have 3 clear business days to change your mind. The clock starts when you sign, and "clear" business days exclude the day of signing, weekends and public holidays. If you withdraw within the period the penalty is $100 or 0.2% of the purchase price, whichever is greater, and the rest of any money paid is returned. There is no cooling-off period at auction. The mechanics and the full list of exceptions are in the cooling-off period Victoria guide.
Step 6: Prepare for settlement
Once the cooling-off period passes, your conveyancer works through the run-up to settlement:
- Assessing land transfer duty and lodging any first home buyer exemption or concession.
- Running a final title search to confirm nothing new is registered against the property.
- Coordinating your lender so loan funds are ready, and calculating rates and levy adjustments.
- Booking the settlement date and time in the electronic settlement workspace.
Arrange a pre-settlement inspection in the days before settlement to confirm the property is in the condition it was in when you signed.
Step 7: Settlement day and the keys
Settlement is the day ownership passes to you. Most Victorian settlements complete electronically through the PEXA platform: the conveyancers transfer the price to the seller after discharging their mortgage, the land transfer duty is paid, and the transfer of title is lodged with Land Services Victoria. When settlement confirms, the agent releases the keys. Afterwards, the title is updated to your name, your lender registers its mortgage if you borrowed, and you transfer utility and council accounts across.
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Conveyancing Explained provides general information about property transactions in Australia. It is not legal advice and does not create a client relationship. For advice on your situation, engage a licensed conveyancer, settlement agent, or property solicitor in your state or territory.