Finding the right property is the exciting part. What happens next — reviewing the Contract of Sale and Section 32 Vendor Statement — is where a first home purchase is won or lost. Most first home buyers in Victoria see a contract for the first time only days, sometimes hours, before they’re expected to sign. The pressure to “just sign and secure the property” is real, and it’s exactly when costly details get missed.
This checklist sets out exactly what a thorough contract review should cover, so you know what your conveyancer is checking and why it matters — whether you’re buying a townhouse in Dandenong, an apartment in the inner suburbs, or a house-and-land package further out. If you already have a contract in hand, our team can review it directly — request a contract review here.
Two Documents, Two Jobs
- The Contract of Sale sets out the terms of the deal — price, deposit, settlement date, special conditions, and any conditions you’ve negotiated (finance, building and pest inspection, and so on).
- The Section 32 Vendor Statement (named after section 32 of the Sale of Land Act 1962) is the seller’s mandatory disclosure document. It tells you what you’re actually buying — title, zoning, easements, outgoings, and any owners corporation obligations.
The Checklist
1. Title and Ownership
- Confirm the seller named on the contract matches the registered owner on the Certificate of Title
- Check for any mortgages, caveats, or other charges registered against the title that need to be discharged before or at settlement
- Look for restrictive covenants — these can limit what you’re allowed to build, renovate, or use the land for, and are easy to miss if you’re not looking for them
2. Zoning and Planning Overlays
- Confirm the property’s zoning matches how you intend to use it
- Check for planning overlays — heritage, flood, bushfire, or vegetation protection overlays can all restrict future renovations, extensions, or rebuilding
- If you’re planning any work down the track, this section of the Section 32 deserves particular attention, since overlays are not always obvious from an inspection alone
3. Easements and Encumbrances
- Identify any easements affecting the land — shared driveways, drainage rights, or utility access are common and not necessarily a problem, but you should know they exist
- Confirm these match what you saw (or were told) during inspections; an undisclosed easement running through where you planned a garage or extension is the kind of detail that surfaces too late if it’s missed now
4. Outgoings and Ongoing Costs
- Council rates, water rates, and any land tax owing should be clearly disclosed
- For apartments and townhouses, the owners corporation certificate should set out current fees, any planned special levies, and the financial health of the owners corporation — a poorly funded sinking fund or an upcoming special levy can mean thousands in unexpected costs after settlement
5. Building Permits and Unapproved Works
- If the property has had renovations, extensions, decks, or other structural changes, permits for that work (generally covering the past seven years) should be disclosed
- Unpermitted structural work is a red flag — it can create insurance complications and, in some cases, council enforcement issues that become your problem once you own the property
6. Deposit and Settlement Terms
- Confirm the deposit amount and when it’s payable
- Check the settlement date works for your circumstances, including finance approval timing and, if relevant, your current lease or living arrangements
- Look closely at any special conditions the vendor has added — these are sometimes used to shift risk or cost onto the buyer in ways that aren’t obvious on a first read
7. Subject-to-Finance and Inspection Clauses
- If your offer is conditional on finance approval, make sure the clause is actually in the contract, with a realistic timeframe
- The same applies to building and pest inspection conditions — these protect you if a problem is found, but only if the clause is properly drafted and the timeframe is workable
8. The Cooling-Off Period
- Most private sales in Victoria carry a cooling-off period of three clear business days after you sign, during which you can withdraw for any reason, subject to a penalty (the greater of 0.2% of the purchase price or $100)
- This does not apply to properties bought at auction, or signed within three clear business days before or after a publicly advertised auction
- It also doesn’t apply if you’re buying through a company structure, or if you’ve previously signed a substantially similar contract for the same property
- If you’re planning to sign quickly to secure a property, it’s worth confirming with your conveyancer whether the cooling-off period actually applies to your situation, rather than assuming it does
9. First Home Buyer Entitlements
If this is genuinely your first property, check the contract and your own eligibility against the schemes available to you:
| Entitlement | Key detail |
|---|---|
| First Home Owner Grant (FHOG) | $10,000 one-off payment for new homes (never previously occupied or sold) valued at $750,000 or less |
| First home buyer stamp duty exemption | Full exemption on properties valued at $600,000 or less |
| First home buyer stamp duty concession | Sliding-scale concession for properties between $600,001 and $750,000 |
| Off-the-plan duty concession | May further reduce the dutiable value on eligible apartment, unit, or townhouse purchases – see our guide to the off-the-plan concession extension for the current rules |
It’s a common and costly mistake to assume the FHOG applies to an established home (it doesn’t — it’s new-build only) or to calculate stamp duty on the full contract price when an off-the-plan deduction or first home buyer concession actually applies. These figures should be confirmed against your specific contract, not assumed from a general rule of thumb.
10. Off-the-Plan Specific Checks
If you’re buying off the plan, a standard review isn’t enough on its own — these contracts carry extra risk that established-home purchases don’t:
- Sunset clauses and what happens if construction runs late
- The developer’s right to vary plans, finishes, or specifications
- Owners corporation rules that will apply once the building is complete
- How the off-the-plan stamp duty concession applies to your specific contract date and construction timeline
For a full breakdown of what to check in an off-the-plan contract specifically, see our off-the-plan and new development conveyancing guide.
Common Mistakes First Home Buyers Make
A few patterns come up repeatedly with first-time buyers in particular:
Signing before the Section 32 has been properly reviewed. Verbal reassurances from an agent are not a substitute for what’s actually disclosed in writing.
Assuming the cooling-off period is a safety net for everything. It doesn’t cover finance falling through after settlement, or issues found after the three-day window closes — that’s what properly drafted finance and inspection conditions are for.
Treating the FHOG and the stamp duty concession as the same thing. They’re separate schemes with separate eligibility rules, and it’s entirely possible to qualify for one without the other.
Not checking owners corporation finances for apartments and townhouses. A low purchase price can look very different once a special levy notice arrives six months after settlement.
Leaving the review until the day before the cooling-off period expires. A rushed review under time pressure is far more likely to miss something than one done with a few days’ breathing room.
What a Professional Contract Review Actually Covers
When PRD Conveyancing reviews a first home buyer’s contract, we work through the Contract of Sale and Section 32 line by line, checking title, zoning, easements, outgoings, owners corporation position, and special conditions against what you’ve told us about the property and your plans for it. We flag anything that needs clarifying with the vendor’s agent before you commit, and we explain what we find in plain language — not legal jargon you need a second opinion to understand.
This matters most in the period before you sign, while you still have room to ask questions or walk away. Once the cooling-off period closes (or doesn’t apply at all, such as at auction), your options narrow considerably.
Frequently Asked Questions
How long does a contract review take?
Do I need a contract review if I'm buying at auction?
What's the difference between a contract review and full conveyancing?
Can I still pull out after the cooling-off period if I find a problem?
Does the First Home Owner Grant apply to established homes?
What if the Section 32 is missing information?
Get Your Contract Reviewed Before You Sign
A first home purchase is likely the largest financial commitment you’ve made. A proper contract review before you sign is one of the most cost-effective steps you can take to avoid an expensive mistake.
At PRD Conveyancing, we review Contracts of Sale and Section 32 Vendor Statements for first home buyers across Dandenong and Greater Melbourne, with the option for urgent turnaround if you’re working against a cooling-off deadline. Request your contract review here or speak to our team with any questions before you commit.
Sources & References
- Sale of Land Act 1962 (Vic), s.31 (cooling-off) and s.32 (vendor statement)
- Consumer Affairs Victoria — cooling-off period requirements
- State Revenue Office Victoria — Understanding the First Home Owner Grant
- State Revenue Office Victoria — First home buyer duty exemption or concession
- gov.au — Support for first home buyers
