Before You Sign: Why a Contract Review Could Be the Most Important Legal Advice You Receive
Buying property in Victoria? The contract tells you far more than the purchase price and settlement date. At MLS LEGAL, we believe knowing exactly what you are buying is one of the most important parts of protecting your investment.
Buying a home is exciting. Whether it is your first apartment, a family home or an investment property, it is easy to become caught up in the inspections, negotiations and excitement of securing the property.
But before you sign a Contract of Sale, there is one important step we always recommend: have a property lawyer review the contract and Section 32 Vendor Statement.
At MLS LEGAL, our contract review service is designed to identify legal risks, explain your obligations and help you make an informed decision before you commit to what may be the largest purchase of your life.
What Does MLS LEGAL Look For?
The Contract of Sale
We examine the contract, including its general and special conditions, to identify terms that may disadvantage you. We look at deposit requirements, settlement dates, default interest, penalty provisions, finance conditions, building and pest conditions and any unusual obligations imposed on the purchaser.
Not every contract is standard. Some contain special conditions that significantly shift risk onto the buyer.
The Section 32 Vendor Statement
The Section 32 contains important disclosures about the property.
We review the information provided, including title particulars, registered interests, planning information, statutory notices, services and relevant certificates. We also identify missing or inconsistent information that may require further investigation.
Owners Corporations and Special Levies
If you are purchasing an apartment, townhouse or property affected by an owners corporation, this is particularly important. We examine the owners corporation information for fees, insurance, financial position, maintenance obligations, proposed works, disputes and special levies.
A property might appear affordable until you discover that the owners corporation is considering substantial building repairs or additional contributions from lot owners. We want you to understand those potential costs before you sign.
Easements, Covenants and Restrictions
An easement may allow a drainage authority or another party rights over part of your land. A restrictive covenant may limit what you can build or how the property can be used. We review the title and relevant plans to identify restrictions that may affect your intended use of the property.
This is especially important if you are considering renovations, extensions, subdivision or redevelopment.
Planning, Building and Compliance Issues
We consider the planning and building information disclosed in the documents and identify matters requiring further enquiries.
For example, an enclosed alfresco area, renovated bathroom or additional structure may raise questions about permits and approvals.
A contract review is not a building inspection or a guarantee of compliance, but it can identify warning signs and help you understand what further checks may be necessary.
What Happens After the Review?
Our approach is practical. We do not simply send you pages of legal terminology and expect you to work everything out. We explain the important issues in plain English, identify risks, recommend appropriate enquiries and advise where contractual amendments or additional protections should be requested.
If a particular condition needs attention, we can discuss the options available before you sign. Our goal is not to make purchasing property complicated. It is to help you proceed with confidence and understand the risks you are accepting.
Why Review Before Signing?
In Victoria, a signed Contract of Sale can create legally binding obligations, even where you have not yet paid the deposit. Although certain purchasers may have cooling off rights, important exceptions apply, including many auction purchases. You should never assume you can simply change your mind after signing.
A review before signing gives you the opportunity to understand the contract, negotiate appropriate protections and make a properly informed decision.
Our Contract Review Service
We believe that clear legal advice should be accessible, particularly when the financial commitment involved in buying property is so significant.
For clients who subsequently engage MLS LEGAL to act on their purchase, the contract review fee can be credited towards our conveyancing professional fees.
Good People, Good Service. Property Law.
Before you sign, speak with MLS LEGAL.
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