Contract of Sale (Victoria): What Buyers and Sellers Need to Know

Buying or selling property in Victoria? Don’t sign anything until you understand this one document, the Contract of Sale.

The Contract of Sale is the most important legal document in a Victorian property transaction. It sets out the terms of the agreement between the buyer and seller. Once signed, both parties are legally bound to carry out the sale on the terms outlined.

If you’re selling property in Victoria or buying your first home, understanding the Contract of Sale will help you avoid mistakes and feel confident during the process.

This guide explains:

• What is a Contract of Sale?
• What does the Contract of Sale include?
• When does a contract become unconditional?
• How long is a Contract of Sale valid for in Victoria?
• Can a vendor cancel the contract?
• What happens if there are multiple owners?

Let’s break it down.

What Is the Contract of Sale?

A Contract of Sale is a legally binding agreement that outlines the terms and conditions of a property transaction between a buyer and a seller. In Victoria, this contract must be in writing and signed by both parties.

It works alongside the Section 32 Vendor Statement, which provides legal disclosures about the property. The Section 32 must be provided before a buyer signs the contract.

Together, these documents protect both parties and form the foundation of any property sale.

What Does a Contract of Sale Include?

Every Victorian Contract of Sale should clearly outline:

• Legal address and land title details
• Names of the buyer and seller
• Purchase price and deposit amount
• Settlement period and date
• Fixtures and fittings included or excluded
• Special conditions (e.g. finance, building inspection)
• Cooling-off period
• Penalties for late settlement
• Signatures of both parties

Depending on the transaction, there may also be conditions about tenancy, early access, or extensions.

When Does a Contract Become Unconditional?

A contract becomes unconditional once all the conditions written into it are met or waived. Most commonly, this includes:

• Finance approval
• Satisfactory building and pest inspection
• Any other special conditions (e.g. sale of the buyer’s home)

Once these are fulfilled, the contract is unconditional and both parties must proceed to settlement.

Can a Vendor Cancel Contract of Sale in Victoria?

Generally, a vendor cannot cancel the contract once it is signed, unless the buyer defaults (e.g. fails to pay deposit or meet conditions).

However, cancellation may occur if:

• A cooling-off period still applies and the buyer rescinds
• Both parties agree to terminate
• A condition gives the vendor a right to withdraw (rare, but possible)

Vendors should never assume they can back out unilaterally. Breaching a contract can lead to serious legal and financial consequences.

Do All Owners Have to Agree to Sell a House?

Yes. If a property is owned jointly, all owners must sign the Contract of Sale for it to be valid.

This applies to:

• Joint tenants (common with married couples)
• Tenants in common (e.g. siblings, business partners)

If one party refuses to sell, the sale cannot proceed unless a court order is obtained. 

Disputes between co-owners should be resolved before listing the property.

Buyer and Seller Responsibilities Before Signing

Buyers should:

• Review the Section 32 Vendor Statement carefully
• Understand the 3-day cooling-off period
• Get written confirmation of finance pre-approval

Sellers should:

• Ensure the contract reflects all agreed terms
• List all exclusions clearly
• Provide their conveyancer with adequate information as requested to complete and accurate Section 32

Common Special Conditions to Consider

• Subject to finance
• Subject to building/pest inspection
• Sale of another property
• Early access

These must be clearly written in the contract to be enforceable.

Cooling-Off Period Explained

In Victoria, buyers (not vendors) have a 3 business day cooling-off period after signing. During this time, the buyer can withdraw without penalty, though a small fee may be charged.

Exceptions apply:

• If the buyer is a company
• If the property was purchased at auction
• If the buyer has already signed a contract for the same property in the last 3 months

Contract of Sale FAQs

How Tahlia Hoegel Conveyancing Can Help

At Tahlia Hoegel Conveyancing, we help buyers and sellers across Victoria confidently navigate their Contract of Sale. With over 15 years of experience and a sterling customer testimonials, we make sure your contract is legally sound, your interests are protected, and nothing gets missed.

We’ll review your documents, explain your rights, and work with all parties to ensure a smooth and timely settlement.

Our services include:

• Drafting or reviewing your Contract of Sale
• Ensuring your Section 32 Statement is 100% compliant
• Managing conditions like finance or building inspections
• Handling communication between agents, lenders, and buyers
• Keeping you informed every step of the way

Contact our team today to get expert conveyancing guidance before you sign.

*This guide applies specifically to property transactions in Victoria, Australia and is based on current Victorian property law *