Property Law in Victoria: A Complete Guide for Owners, Buyers and Sellers

What Is Property Law?

Property law in Victoria is the body of statute, common law and equitable principles that governs the ownership, transfer, use and disputes over real property (land and buildings) in the State. It sits at the intersection of land law (who owns what), contract law (how interests are transferred), equity (trusts, mortgages, restitution), taxation (stamp duty, GST, capital gains tax, land tax) and planning law (what can be built and used). Few areas of legal practice touch as many other disciplines.

Land in Victoria is held under the Torrens system, introduced by the Real Property Act 1862 (Vic) and now embodied in the Transfer of Land Act 1958 (Vic). Title is established by registration — the Register, maintained by Land Use Victoria, is the conclusive record of legal ownership. The mantra of the Torrens system is 'indefeasibility' — a registered proprietor takes title free of unregistered interests, subject only to limited statutory exceptions and the doctrine of fraud. The Torrens system replaced the older deeds system, which required tracing chains of ownership through bundles of paper documents, and produced enormous gains in certainty, speed and cost.

The principal statutes that govern Victorian property law are:

• Transfer of Land Act 1958 (Vic) — registration, indefeasibility, caveats, mortgages, easements, the operation of the Register.
• Property Law Act 1958 (Vic) — co-ownership, partition, leases, mortgages, restrictive covenants, formality requirements, equitable doctrines.
• Sale of Land Act 1962 (Vic) — vendor statements, cooling-off rights, terms contracts, sunset clauses, off-the-plan duty arrangements, deposit protection.
• Subdivision Act 1988 (Vic) — subdivision and consolidation of land, plans of subdivision, owners corporations, common property, boundary adjustments.
• Owners Corporations Act 2006 (Vic) — the constitution, powers and obligations of owners corporations and their lot owners.
• Retail Leases Act 2003 (Vic) — minimum standards and protections for retail tenants.
• Residential Tenancies Act 1997 (Vic) — residential tenancies, rooming houses, caravan parks and residential parks.
• Planning and Environment Act 1987 (Vic) — planning schemes, permits, enforcement.
• Duties Act 2000 (Vic) and Land Tax Act 2005 (Vic) — land transfer duty and land tax.
• Fences Act 1968 (Vic) — dividing fences, contributions, notices.

Property law is enforced in three forums: the Supreme Court of Victoria (high-value and complex matters, caveat disputes, specific performance, equity matters, all original Torrens jurisdiction); the County Court (mid-tier commercial property disputes within its monetary jurisdiction); and VCAT — primarily the Residential Tenancies List, the Owners Corporations List, the Retail Tenancies List and the Planning and Environment List. The Magistrates' Court has limited property jurisdiction (primarily Fences Act and small commercial debts).

Buying Residential Property

Buying residential property in Victoria typically follows a predictable sequence, but each step contains traps for the inexperienced or rushed purchaser. The most common mistakes are made before the contract is signed; they are also the hardest to fix afterwards.

1. Pre-offer due diligence. Read the Section 32 vendor statement. Read the contract of sale. Identify the property by a copy of the title and a plan. Order a building and pest inspection (for established homes) or review the building plans and construction stage (for off-the-plan). For owners-corporation properties, review at least 12 months of meeting minutes and the most recent financial statements and maintenance plan. Confirm finance pre-approval. Confirm planning, zoning, overlays and flooding/bushfire status via a planning property report.
2. Offer and negotiation. Offers are usually made in writing through the agent. Conditions (finance, inspection, due diligence) can be negotiated in. Auction purchases are unconditional and not subject to cooling-off — pre-auction due diligence is the only chance to check.
3. Signing the contract and paying the deposit. Contract becomes binding on exchange. Deposit is commonly 10% and is held in the agent's trust account.
4. Cooling-off period. For private sales of residential property, three clear business days from signing — see the dedicated section below.
5. Pre-settlement period. Finance unconditional approval, building insurance arranged, transfer prepared in PEXA, statements of adjustment calculated, final pre-settlement inspection.
6. Settlement. Electronic settlement in PEXA. Balance of price paid, title transferred, incoming mortgage registered, vendor's mortgage discharged.
7. Post-settlement. Keys delivered. State Revenue Office notification. Council, water and owners corporation notified of new ownership.

For a deeper, practical walkthrough see our companion guide on buying property in Victoria.

Selling Residential Property

The vendor's obligations begin well before the property is listed. The Section 32 statement must be prepared and accurate, the contract must be drafted, planning and outgoings information must be current, and the vendor must be ready to negotiate amendments and special conditions proposed by purchasers. The single most consequential vendor decision — sale by private treaty, auction or expression of interest — is made before the agent is engaged and shapes everything that follows.

• Private treaty — fixed asking price, cooling-off applies, conditions can be negotiated. Suits most properties.
• Auction — unconditional sale on the day of the auction, no cooling-off, no finance or inspection conditions. Suits properties with high competitive interest and motivated vendors.
• Expression of interest / tender — closed-bid process common for high-value or unusual properties.

The vendor's lawyer must ensure the Section 32 is complete and accurate. Errors and omissions give the purchaser a statutory rescission right under section 32K of the Sale of Land Act — historically the most frequently invoked basis for late-stage contract failures. After settlement, the vendor must lodge a final capital gains tax position with the ATO (if the property is not a main residence), close out land tax obligations and notify Council and water authorities. For a deeper walkthrough see our companion guide on selling property in Victoria.

Buying Commercial Property

Commercial property purchases share the basic framework of residential transactions but differ in scale, depth and risk. Commercial purchasers are not protected by cooling-off rights (with limited exceptions for commercial property under $750,000 — see the cooling-off section). Commercial due diligence is wider and more expensive — environmental reports, lease and tenancy reviews, structural and services reports, town-planning advice, GST and stamp-duty modelling, asset-protection and ownership-structure advice. Many commercial transactions involve a special-purpose vehicle (an SPV company or a unit trust) acquiring the property, which triggers additional structuring, financing and tax considerations.

Key issues in commercial purchases include:

• Tenancies — is the property tenanted? Are the leases retail or non-retail? What rent reviews are due and what is the current condition of the property versus the make-good obligations of the tenants?
• GST — going-concern treatment, margin scheme eligibility, deferred liability under the GST withholding regime.
• Environmental risk — Phase 1 and Phase 2 environmental site assessments for any industrial-use property or any property with a history of contaminating use.
• Planning and development potential — zoning, overlays, development potential, infrastructure charges, heritage overlays.
• Owners corporations — strata or stratum titled commercial property has its own owners corporation issues.
• Stamp duty structuring — corporate reconstructions, land-rich entities, foreign-purchaser surcharges.

For deeper guidance see our companion piece on buying commercial property in Victoria.

Selling Commercial Property

Commercial vendors face the inverse of the commercial purchaser's due-diligence agenda. The marketing process is typically a competitive tender or expression of interest, the documentation is bespoke and the negotiations are conducted at depth. Vendor considerations include: GST treatment (vendors should preserve going-concern eligibility); tenancy management in the lead-up to settlement (clean rent rolls, no outstanding disputes, current leases); maintenance and capital expenditure to maximise sale price; CGT planning (small business CGT concessions, retirement exemption, replacement-asset rollover); and clean-out of any unresolved planning, building or environmental matters that will be discovered in purchaser due diligence and used to discount the price.

The vendor's lawyer drafts the contract from scratch (or from a precedent), tailors the warranties and conditions to the property and the structure of the deal, and negotiates the GST, lease, environmental, planning and warranty provisions. Sophisticated commercial purchasers are well-advised; preparation and process discipline are the vendor's defence.

Section 32 Vendor Statements

The Section 32 statement is the cornerstone of Victorian residential vendor disclosure. It is a statutory document prepared under section 32 of the Sale of Land Act 1962 (Vic) that the vendor must give the purchaser before the purchaser signs the contract of sale. The statement discloses matters known to the vendor (or that the vendor ought to have known) that may affect the purchaser's decision. Required disclosures include:

• The title — a copy of the register search statement, the plan and any instruments referred to.
• Mortgages, caveats and other registered interests.
• Easements, covenants and other restrictions affecting the use of the land.
• Planning information — zone, overlays, the planning scheme name.
• Outgoings — rates, land tax, water, owners corporation fees, body corporate insurance.
• Building permits issued in the seven years before sale.
• Owner builder construction in the last seven years and applicable warranty insurance.
• Whether the land is in a designated bushfire-prone area.
• Whether the land is subject to a growth area infrastructure contribution.
• Notices, orders, declarations or recommendations from authorities.
• Owners corporation certificate (for strata-title properties).
• Disclosure of any non-connected services (sewerage, water, gas, electricity, telephone).

A defective Section 32 statement gives the purchaser a statutory right to rescind the contract under section 32K, in some cases right up to and including settlement day. Even minor errors and omissions can support rescission if the purchaser would not have proceeded had the correct information been disclosed. The vendor's lawyer therefore bears significant professional responsibility for the accuracy of the document.

Contracts of Sale

The contract of sale is the binding agreement that governs the transaction from exchange to settlement. The standard Victorian residential contract is the LIV/REIV contract of sale of real estate, comprising a particulars schedule, general conditions and (almost always) special conditions added by the parties' lawyers. The contract sets the price, deposit, settlement date, inclusions and exclusions (chattels), GST treatment, conditions (finance, building inspection, due diligence, planning), warranties, the adjustments provisions, default and termination rights and notice requirements.

Critical commercial points routinely contested in residential contract negotiation include the settlement date (commonly 30, 60 or 90 days), the finance condition (length of period, named lender, amount, requirement to apply in good faith), building and pest inspection condition (typically 7-14 days, with right to terminate for 'major defects'), and the deposit-release clause (when the deposit can be released to the vendor before settlement). Commercial contracts are bespoke and the negotiation points are even broader — GST clauses, warranties on tenancies, environmental warranties, due diligence periods of 30-90 days, and conditions precedent relating to planning, finance and board approval.

Cooling-Off Rights

Section 31 of the Sale of Land Act 1962 (Vic) gives residential purchasers a three-clear-business-day cooling-off period after signing a contract of sale. The purchaser may terminate by written notice within the period and forfeits the lesser of 0.2% of the purchase price or $100 — a small penalty for what is, in substance, a statutory escape clause.

Cooling-off does NOT apply to:

• Sales by public auction.
• Sales within three clear business days before or after a publicly advertised auction.
• Purchases over $750,000 of commercial or industrial property.
• Farming land of more than 20 hectares.
• Purchases by an estate agent or a corporate body.
• A purchaser who previously signed a similar contract for the same land.

Purchasers should treat the cooling-off period as the window for finance confirmation, professional inspection and final due diligence — not as time to renegotiate or shop the deal. Vendors should expect that cooling-off occasionally produces terminations and structure their transaction timelines accordingly. There is no cooling-off right in commercial transactions over the $750,000 threshold and (importantly) no general cooling-off right for vendors.

Stamp Duty and Land Transfer Duty

Land transfer duty (still universally called 'stamp duty') is the State tax payable by the purchaser on the transfer of real property, administered by the State Revenue Office under the Duties Act 2000 (Vic). For residential property valued at over $960,000 the standard rate is 5.5% of the dutiable value with a fixed component; lower-priced properties attract scaled rates. Duty is typically calculated and remitted by the purchaser's lawyer through PEXA at settlement.

Important concessions and surcharges:

• Principal-place-of-residence concession — discounted duty rates for purchasers who will occupy the property as their principal place of residence within 12 months and for at least 12 months.
• First-home buyer exemption — full exemption for first-home purchases up to $600,000; concession scaling to nil at $750,000.
• Pensioner concession — full exemption up to $330,000; partial concession to $750,000.
• Off-the-plan concession — duty calculated on the value of the land plus construction progress at the contract date, valuable for new apartments and townhouses.
• Family farm exemption — for intra-family transfers of qualifying farming land.
• Corporate reconstruction concession — for intra-group transfers within a 90% owned corporate group.
• Family law rollover — section 44 of the Duties Act exempts transfers between spouses pursuant to court orders or binding financial agreements.
• Deceased estate transfers — exempt under section 42 where the transfer is pursuant to a will or intestacy.
• Foreign purchaser surcharge — an additional 8% on the dutiable value applies to purchases by foreign natural persons, foreign corporations and foreign trusts.

Duty planning is an essential component of any substantial purchase, particularly where ownership structures, related parties or foreign elements are involved. Errors are expensive and difficult to unwind.

Property Settlements

'Settlement' in property law has two distinct meanings. In conveyancing it refers to the moment ownership passes — the purchaser pays and the vendor delivers title — typically conducted electronically in PEXA at a pre-agreed time on the settlement date. In family law, 'property settlement' refers to the division of property between separating spouses or de facto partners under the Family Law Act 1975 (Cth) — a much broader financial-division exercise that is the subject of its own pillar guide. The two meanings are related (a family-law property settlement frequently results in a conveyancing settlement transferring real estate) but should not be confused.

Electronic conveyancing settlements in PEXA require all parties (and their lenders) to be PEXA-enabled, with documents executed digitally and funds released via the Reserve Bank's real-time gross settlement system. Most settlements proceed smoothly; problems most commonly arise from finance delays, errors in the transfer or mortgage, last-minute caveats lodged by third parties, or breakdown in the contract conditions that should have been resolved earlier. Where settlement cannot be effected on the contractual date, the parties are 'unable to settle' — the next steps depend on which party is in default and on the notices issued under the contract's general conditions. For family-law property division, see our pillar guide on property settlement after separation.

The Conveyancing Process

Conveyancing is the end-to-end process of transferring ownership. The mechanics on a typical residential sale are:

1. Pre-listing. Vendor's lawyer prepares Section 32 and contract. Vendor obtains current rates certificates, water authority statements, owners corporation certificate (if applicable), land tax clearance, planning property report. Building certificates and current insurance are confirmed.
2. Marketing and offer. Property marketed. Offers received, negotiated and accepted. Contract signed and exchanged.
3. Post-exchange. Deposit paid into trust. Cooling-off (if applicable) runs. Conditions precedent (finance, building inspection, due diligence) completed within their stipulated periods.
4. Pre-settlement. Title searches and requisitions on title responded to. Outgoings calculated and adjusted to settlement date. Transfer of Land prepared and signed in PEXA. Incoming purchaser's mortgage prepared and signed. Final pre-settlement inspection conducted.
5. Settlement. PEXA workspace ready, with all parties (vendor, vendor's mortgagee, purchaser, purchaser's mortgagee) signed in. Funds released, title transferred, mortgages discharged and registered. Settlement complete.
6. Post-settlement. Keys delivered. State Revenue Office, Council, water authority and (if applicable) owners corporation notified of change of ownership. Vendor's bond accounts closed; purchaser's accounts opened.

Commercial conveyancing follows the same general framework but with longer timelines (typical due diligence of 30-90 days, settlement 30-180 days after unconditional), wider warranties, and (in many cases) a tenancies and leases assignment alongside the land-transfer steps.

Caveats

A caveat is a notice lodged on the title to land warning third parties that the caveator claims an estate or interest in the land. Once a caveat is lodged the Registrar will not register any dealing inconsistent with the caveator's claim without first giving notice and an opportunity for the caveator to take court action. Caveats are governed by sections 89-91A of the Transfer of Land Act 1958 (Vic) and are the principal mechanism for protecting unregistered equitable interests in Torrens-system land.

Common caveatable interests include:

• The interest of a purchaser under a contract of sale pending registration of the transfer.
• The interest of a holder of an unregistered mortgage.
• The interest of a beneficiary under a constructive or resulting trust (commonly arising in family-law and de facto property disputes).
• The interest of a party to a binding financial agreement or consent orders pending registration of the transfer of land.
• The interest of an option holder, a lessee with an option to renew, or a creditor with a charge over land.

Removal of a caveat is by consent (withdrawal lodged by the caveator), by lapsing notice under section 89A (Registrar serves notice; caveat lapses after 30 days unless court proceedings are commenced), or by Supreme Court order under section 90(3). Improperly lodged caveats can attract a compensation order under section 118. See our companion guides on caveat removal in Victoria and on caveats over property after separation.

Easements

An easement is a right held by one parcel of land (the 'dominant tenement') over another (the 'servient tenement'). Easements bind successive owners and are recorded on title in Victoria. Common easements include rights of carriageway (vehicular access), rights of way (pedestrian access), drainage and sewerage easements, and easements for the supply of electricity, water and telecommunications. Easements can be created by express grant in a transfer or deed, by implication on subdivision, by reservation, by long use (prescription — very narrow under the Torrens system), or by court order.

Disputes over easements typically concern: the scope of the right (does a right of carriageway permit commercial use of the dominant tenement?), interference with the easement (blocking, building over, planting), the location of an undefined easement, and abandonment. Remedies include declaration, injunction, damages and (in extreme cases) extinguishment. Easements can be removed or modified by agreement of all benefiting and burdened owners, by application to the Registrar where the easement has been abandoned, or by Supreme Court order under section 84 of the Property Law Act 1958 (Vic). See our companion guide on easements in Victorian property.

Restrictive Covenants

A restrictive covenant is a private agreement, typically embedded in a transfer of land or registered on title, that restricts the use of the land for the benefit of other landowners — usually neighbouring lots originally subdivided from the same parent title. Common covenants restrict the number of dwellings, the materials of construction, the height or setback of buildings, or the use of the land (e.g. 'residential purposes only', 'no commercial use', 'no licensed premises').

Covenants are private rights enforced by neighbouring lot owners, not by Council. A breach gives the benefiting owners a right to seek an injunction and/or damages in the Supreme Court. Importantly, a planning permit cannot authorise a breach of a covenant — and VCAT will not issue a permit that breaches one (under section 61 of the Planning and Environment Act 1987 (Vic)). Removal or modification of a covenant requires either application to the Registrar under section 84 of the Property Law Act 1958 (Vic) (where the covenant is obsolete or no longer benefits the beneficiaries), planning-scheme amendment, or unanimous agreement of all benefited owners — the last being practically impossible in most cases. See our companion guide on restrictive covenants in Victorian property.

Adverse Possession

Adverse possession is the common-law doctrine by which a person who has been in actual, continuous, exclusive and 'adverse' possession of land for 15 years can apply to be registered as proprietor in place of the registered owner. In Victoria the limitation period is set by section 8 of the Limitation of Actions Act 1958 (Vic). The application is made to Land Use Victoria under section 60 of the Transfer of Land Act 1958 (Vic) and is supported by detailed survey, statutory declarations, historic photographs and any other evidence of possession.

Adverse possession is most often invoked over small strips and boundary anomalies where a fence has been in the 'wrong' location for decades — a few square metres on one side of a long-standing fence line. It is also used in respect of laneways, narrow strips of land between properties, and small areas of unalienated Crown land (though Crown land claims are heavily restricted). Applications are commonly opposed by the registered owner once notified, and contested adverse possession litigation is a substantial Supreme Court exercise. See our companion guide on adverse possession in Victoria.

Owners Corporations

An owners corporation is the legal entity created on registration of a plan of subdivision that creates two or more lots sharing common property. Most modern apartment blocks, townhouse complexes, multi-unit developments and many subdivided commercial buildings have one. The owners corporation is governed by the Owners Corporations Act 2006 (Vic), the model rules (or its own registered rules) and by the lot owners collectively at general meetings.

The owners corporation is responsible for:

• Maintaining and repairing the common property.
• Arranging public liability and building insurance.
• Raising annual fees and (where needed) special levies.
• Enforcing the rules.
• Managing disputes between lot owners.
• Holding annual general meetings.

Common owners corporation disputes include: non-payment of fees, breach of rules (noise, pets, parking, short-stay use), building defects, water ingress, common property boundaries, exclusive use of common areas (parking spaces, courtyards), and disputes over the conduct of meetings. Disputes are routed through the owners corporation's internal grievance procedure, the Owners Corporations List at VCAT and (in serious cases) the Supreme Court. See our companion guide on owners corporation disputes in Victoria.

Boundary and Fencing Disputes

Boundary disputes arise when the position of the legal boundary between two parcels of land does not match the position of the existing fence or other physical features. They are resolved by reference to the registered title plan, a licensed surveyor's identification survey, and (where occupation differs from the title) adverse possession or boundary realignment under the Subdivision Act 1988 (Vic).

Fencing disputes are a related but distinct category. The Fences Act 1968 (Vic) requires neighbours to share the cost of a 'sufficient dividing fence' and provides a notice-and-response process: one owner serves a 'fencing notice' specifying the works proposed and the cost; the other has 30 days to respond. If agreement cannot be reached, the matter goes to the Magistrates' Court (or the Neighbourhood Justice Centre in some areas). Most fencing disputes start with poor communication and end with engaged surveyors and lawyers — early surveying and written communication prevent most of them. See our companion guide on property boundary and fencing disputes in Victoria.

Leasing Residential Property

Residential leasing in Victoria is comprehensively regulated by the Residential Tenancies Act 1997 (Vic), which was substantially rewritten in 2021 in favour of tenants. The Act applies to almost all residential tenancies (with limited exceptions for some short-stay, student and care accommodation) and governs the formation of leases, rent, bond, repairs and maintenance, entry, termination, and dispute resolution at VCAT.

Key landlord obligations include:

• Providing premises in good repair and reasonably fit for occupation, with all minimum rental standards (working locks, heating, water, electrical safety).
• Lodging the bond with the Residential Tenancies Bond Authority.
• Giving prescribed notice before entry (24-48 hours depending on reason; entry only for permitted reasons).
• Following the prescribed process for rent increases (no more than once every 12 months; minimum 60 days notice; rent cannot be increased during a fixed term unless the lease allows).
• Issuing termination notices on prescribed forms with prescribed notice periods for prescribed reasons.

Key tenant obligations include paying rent on time, keeping the premises reasonably clean, not causing damage beyond fair wear and tear, and giving notice before terminating. Disputes go to the Residential Tenancies List at VCAT. See our companion guide on tenant rights in Victoria.

Commercial Leasing

Commercial leasing in Victoria is governed by the lease itself, the common law of landlord and tenant, the Property Law Act 1958 (Vic) and — for premises that qualify — the Retail Leases Act 2003 (Vic). The Retail Leases Act provides additional tenant protections:

• A landlord's disclosure statement must be given at least 14 days before the lease is signed.
• Minimum five-year term (including options) unless the tenant waives.
• Rent reviews can only be by stipulated mechanisms (fixed, CPI, market, fixed percentage) — no compounding combinations and no 'ratchet' clauses preventing market rents from going down.
• The landlord pays land tax (cannot pass it through).
• Outgoings recoverable from the tenant must be disclosed and audited annually.
• Disputes go to the Small Business Commission for mediation, then to VCAT.

Whether a lease is 'retail' depends on the use of the premises (must be for the sale of goods or supply of services) and the tenant's circumstances (occupancy costs, public listing of the tenant). Many borderline cases (office leases, mixed-use, professional services) require careful analysis. Commercial-only (non-retail) leases give parties broad freedom of contract and are largely unregulated. See our companion guide on when the Retail Leases Act applies in Victoria.

Property Litigation

Property litigation covers any contested court or tribunal proceedings over real property. Common categories include:

• Caveat disputes — applications for removal under section 90(3) of the Transfer of Land Act, or proceedings commenced by the caveator after a lapsing notice.
• Specific performance of a contract of sale — usually brought by a purchaser to compel a vendor to complete.
• Damages for misleading and deceptive conduct — under the Australian Consumer Law, for misrepresentations about the property in the Section 32 or marketing material.
• Easement and covenant enforcement — injunctions and damages.
• Partition proceedings between co-owners — to compel sale of jointly-owned land.
• Adverse possession applications and opposition.
• Owners corporation disputes at VCAT.
• Landlord-and-tenant proceedings — residential (VCAT) and commercial (Small Business Commission, VCAT, Supreme Court).
• Building disputes — defective work, cost overruns, payment claims, security of payment.

Most property litigation is heard in the Supreme Court (Torrens jurisdiction and high-value or complex matters), the County Court (mid-tier commercial), or VCAT (residential tenancies, retail leases, owners corporations, planning). Property litigation is fact-intensive and expert-dependent — surveyors, valuers, planners, building consultants and quantity surveyors are routinely briefed. Costs escalate quickly. Early advice, narrow framing of the issues and disciplined preparation are essential.

Planning and Due Diligence

Planning law sits alongside property law and is regularly decisive in development and substantial-purchase decisions. The Planning and Environment Act 1987 (Vic) establishes a planning scheme for every municipal area, and the scheme overlays zones (residential, commercial, industrial, rural, public use) and overlays (heritage, environmental significance, design and development, vegetation protection, bushfire) onto every parcel. Whether a permit is required for a proposed use or development depends on the zone and overlay rules.

Due diligence for a substantial purchase commonly includes:

• Title search and review of registered instruments (mortgages, caveats, easements, covenants).
• Section 32 statement and contract review.
• Planning property report and review of zone, overlays, heritage status, growth area infrastructure contribution, vegetation protection.
• Flood, bushfire and erosion mapping.
• Building permit history (seven years).
• Building and pest inspection (residential) or structural and services reports (commercial).
• Environmental site assessment (commercial and industrial).
• Owners corporation due diligence — meeting minutes, financial statements, maintenance plan.
• Tenancy due diligence — leases, tenancy schedule, rent roll, arrears, options.
• Finance pre-approval and valuation.
• GST, stamp duty and CGT modelling.

Due diligence should be completed before signing — the cooling-off period is too short to do it properly, and a commercial purchaser has no cooling-off at all.

Common Mistakes

The recurring property law mistakes the firm sees fall into a small number of categories:

• Signing before reading. Signing a contract or lease without legal review — the single most expensive mistake in property law.
• Skipping due diligence. Trusting the vendor's disclosure, the agent's marketing, or the previous owner's experience instead of doing independent checks.
• Misunderstanding cooling-off. Believing cooling-off applies to auction purchases or to commercial transactions, or believing the period is longer than three business days.
• Ignoring covenants and easements. Buying property without understanding the restrictions on its use, or planning a development that breaches a covenant.
• Underestimating owners corporation liability. Not reviewing meeting minutes, special levy history or the maintenance plan before buying into a strata complex.
• Caveats lodged without proper interest. Lodging or accepting caveats without a clear caveatable interest — exposing the caveator to compensation liability and the landowner to delay.
• Boundary assumptions. Assuming the fence marks the boundary, then building improvements on the wrong side and creating an adverse possession claim.
• GST errors on commercial transactions. Failing to elect going-concern treatment or to apply the margin scheme, with seven-figure consequences on substantial transactions.
• Stamp duty traps. Foreign-purchaser surcharge, principal-place-of-residence concession forfeiture, off-the-plan timing errors.
• Family-law and estate-planning oversight. Property decisions made without regard to existing wills, binding financial agreements, family trust arrangements or anticipated family-law claims.

When to Obtain Legal Advice

Obtain legal advice before signing — not after. Once a contract or lease is signed, options narrow dramatically. As a rule of thumb, engage a lawyer for:

• Any contract over $500,000.
• Any commercial property transaction.
• Any off-the-plan purchase.
• Any property held in a trust, partnership or company.
• Any transaction with unusual conditions, special features or related parties (family transfers, gifts, loans secured by mortgage).
• Any caveat, easement, covenant or boundary issue.
• Any neighbour or owners corporation dispute.
• Any planning issue — permits, refusals, conditions, VCAT appeals.
• Any tenancy issue (residential or commercial) involving termination, substantial breach or material non-compliance.
• Any family-law property transfer (consent orders, binding financial agreements).
• Any deceased-estate property transmission, transfer or sale.

Property law is dense, technical and intersects with tax, planning, family and estate law. Coordinated advice across disciplines is the only way to manage substantial transactions properly. For complementary guides see our pillars on real property in deceased estates, the executor's guide to estate administration in Victoria, property settlement after separation and business succession planning. Other relevant guides include the absentee owner surcharge in Victoria.

How Parke Lawyers Helps

Parke Lawyers acts on the full range of Victorian property matters — residential and commercial conveyancing, off-the-plan purchases, family and estate-related transfers, commercial and retail leasing, owners corporation advice, caveat and covenant work, easement and boundary disputes, planning and development matters and property litigation. The firm's property practice is led by Julian McIntyre, working closely with the firm's Commercial & Business Law and Litigation & Dispute Resolution teams. Substantial property transactions are structured, negotiated and completed with an eye to the client's broader position — family arrangements, estate plan, business structure and tax exposure — so that the property file works with the rest of the client's financial life, not against it.

Frequently Asked Questions