Contracts, settlement and money across borders

Manage the final legal and financial steps to ensure a smooth transfer of ownership.

Reviewing the Vendor Statement

The Section 32 Vendor Statement is the cornerstone of Victorian property law. It requires the seller to disclose specific information to the buyer before a contract is signed. This includes details of the property title, any mortgages or charges over the land, zoning information, and recent building permits. It also lists the outgoings such as council rates and water charges. As a relocating buyer, you must have your conveyancer review this document thoroughly. They will look for any red flags, such as undisclosed easements or restrictions that might prevent you from building a pool or extending the home.

If the property is part of an Owners Corporation, common in apartments and townhouses, the Section 32 must also include the minutes of the last annual general meeting and a certificate showing the current fees and any proposed special levies. This is critical because an upcoming major repair to an apartment building could result in a significant expense for you shortly after you move in. Understanding these costs upfront allows you to factor them into your ongoing budget. Never skip the review of the Section 32, as it is your main source of truth about the legal state of the property.

Moving Money to Victoria

Transferring large sums of money across borders for a property deposit and settlement requires careful planning. Banks often have daily transfer limits, and international transfers can take several days to clear. You should investigate specialized currency transfer services, which often offer better exchange rates and lower fees than major banks. However, ensure that the service you use is reputable and regulated. You will need to provide the funds for the deposit, which is typically ten percent, and then the balance of the purchase price plus stamp duty and fees at settlement.

Be aware of Anti Money Laundering and Counter Terrorism Financing regulations. Your bank and your conveyancer will require proof of the source of your funds. This might include bank statements showing a history of savings, evidence of the sale of another asset, or inheritance documentation. Providing this information early will prevent delays in the settlement process. It is also wise to keep some extra funds in an Australian account to cover unexpected costs like minor repairs or utility connection fees that arise immediately after you take possession of the property.

What Happens at Settlement

Settlement is the official date when the balance of the purchase price is paid to the seller and the title to the property is transferred to you. In Victoria, this is now almost exclusively done electronically via the PEXA platform. You do not need to be physically present. Your conveyancer and your lender will coordinate through PEXA to exchange the money and lodge the transfer of land with the Victorian Land Registry. Once the settlement is successful, the agent will be notified, and you can arrange to collect the keys. This process usually takes about thirty to sixty minutes on the scheduled day.

Before settlement, you are entitled to one final inspection of the property, usually in the week leading up to the date. If you are relocating, you might ask your buyer's advocate or a trusted friend to do this for you. The purpose is to ensure the property is in the same condition as when you signed the contract and that all inclusions, like the dishwasher or light fittings, are still there. If there are issues, your conveyancer can sometimes negotiate a small amount to be held back from the settlement funds to cover repairs, although this must be agreed upon by both parties. Once settlement is complete, the property is officially yours.

• Thoroughly review the Section 32
• Confirm source of funds for AML compliance
• Use a secure currency transfer service
• Coordinate with your lender for PEXA settlement
• Conduct a final pre-settlement inspection