Property Law

A purchaser who signs a Contract for the purchase of real estate can terminate the contract within 3 clear business days from the day they signed it.

However, this right does not apply in certain situations:

• The property is bought at, or within 3 clear business days before or after, a publicly advertised auction.
• The purchaser and vendor have previously entered into a contract for the same property.
• The purchaser is an estate agent or a company.

Note: The “cooling off” period applies only to residential sales, not commercial or industrial properties.

The Victorian Government currently offers the following incentives:

• Established homes (up to $600,000): Full exemption from Stamp Duty — a saving of over $31,000.
• Partial exemption still applies on homes valued up to $750,000, on a sliding scale.
• Brand new homes (never lived in): Full Stamp Duty exemption up to $600,000 + $10,000 First Home Owner Grant.
• Vacant only: Exemptions and grants also apply. Lenders often apply for these on your behalf as part of your land and construction loan.

To be eligible for the above stamp duty concession or exemption and First Home Buyer Grant, you must live in your property as your principal place of residence for a continuous period of 12 months, commencing within 12 months of settlement, to maintain your eligibility for the duty exemption or concession. If you buy the property with someone else, at least one of you must satisfy this residency requirement.

The exemption or concession is only available to you once. If you or your partner has received the benefit of this exemption or concession previously, you cannot receive it again.

Yes — pre-approval is essential, especially if you’re planning to bid at auction.

With pre-approval:

• You know your exact budget in advance.
• You can confidently attend auctions (which are not subject to finance).
• You avoid the risk of failing to settle and losing your deposit.

Even for private sales, having pre-approval prevents disappointment and helps you act quickly when the right property comes up.

Buying “off-the-plan” means purchasing property — such as land or an apartment — that has not yet been built or subdivided. It only exists as a drawing on a proposed plan.

Why buy off-the-plan?

• Lock in the price early.
• Pay only the deposit upfront.
• Save and prepare finances during the construction period.

We strongly recommend obtaining legal advice before entering into an off-the-plan contract.

How does the concession work?

You pay duty on the dutiable value of your property. This is usually the price paid for the property or its market value, whichever is greater.

However, when the off-the-plan concession applies, the dutiable value is the contract price minus the cost of construction or refurbishment incurred after the contract date. As this reduces the dutiable value of your property, it also reduces the amount of stamp duty you pay.

Example: An off-the-plan apartment

Vanessa buys an apartment off the plan as her future home for $620,000. She signs the contract before any construction has commenced. The vendor advises Vanessa that $400,000 of the contract price will be spent on constructing her apartment.

This means that the dutiable value of Vanessa’s apartment, after applying the off-the-plan concession, is $220,000 ($620,000 – $400,000).

The off-the-plan concession only applies where the contract price reflects the market value of the property being purchased. If your contract price is less than market value, duty will be assessed on the value of the property at the time you entered the contract.

The off the plan concession is not available to a company or a trustee of a trust buying a property off the plan.

A nomination sale allows a purchaser to nominate another buyer to complete the property transaction, before settlement.

If the original purchaser cannot or does not want to complete the sale, they can:

• Nominate an alternate buyer.
• Complete the nomination through a Deed of Nomination or Nomination Form.

Legal advice is strongly recommended to ensure the nomination is done correctly and your interests are protected.

Yes — always seek legal advice before signing a lease.

While there are standard lease templates (e.g., provided by the Law Institute of Victoria), it’s important to:

• Have a legal practitioner review or draft the lease.
• Include custom or special conditions to suit your situation.
• Ensure you understand your rights and obligations.

It depends on the type of lease:

• Retail leases: Landlords cannot recover legal fees from the tenant — even if the tenant pulls out last-minute.
• Landlords also cannot recover land tax under a retail lease.
• However, landlords can recover reasonable costs in relation to:
  • Investigating a proposed assignee.
  • Obtaining consents for assignment.