Understanding Consent Orders: How to Make Your Separation Agreement Legally Binding

Before You Start Looking

Before you even walk through your first open home, there are a few things worth sorting out.

Get your finance pre-approved. Knowing your budget avoids falling in love with something you can't afford. Pre-approval also shows sellers and agents you're serious.

Choose your solicitor or conveyancer early. Don't wait until you've found a property. Having someone ready to go means they can review documents quickly when you need them to, especially if you're buying at auction where contracts are signed on the day.

Understanding the Section 32

In Victoria, the seller must provide a Section 32 vendor's statement before a contract is signed. This is a disclosure document that tells you important details about the property, including:

• Who owns it and how the title is held
• Any easements, covenants, or restrictions
• Planning and zoning information
• Building permits issued in the last seven years
• Connected services and ongoing costs like rates

Your solicitor should review this before you commit. Issues hidden in a Section 32 can affect what you're able to do with the property or how much it's really worth.

Making an Offer or Buying at Auction

Private sale: You make an offer, and if accepted, both parties sign the contract of sale. You'll typically have a cooling-off period of three business days, during which you can withdraw from the contract (though a penalty of 0.2% of the purchase price may apply).

Auction: There is no cooling-off period when you buy at auction. The contract is binding the moment the hammer falls. This is why it's essential to have the Section 32 and contract reviewed before auction day, not after.

Your solicitor can also help you understand any special conditions you might want included in the contract, such as a subject-to-finance clause or a longer settlement period.

What Happens After You Sign

Once the contract is signed, your solicitor handles the legal work required to transfer the property into your name. This includes:

Title searches and checks
Confirming the seller has the legal right to sell and there are no surprises on the title.

Liaising with your lender
Coordinating with your bank or mortgage broker to ensure finance is ready for settlement.

Adjustments
Calculating adjustments for council rates, water rates, and owners corporation fees so each party pays their fair share.

Transfer of Land
Preparing the legal documents that officially transfer ownership to you.

Settlement
On settlement day, your solicitor coordinates with the seller's solicitor, the banks, and any other parties to exchange funds and documents. Once settlement is complete, you get the keys.

Stamp Duty and First Home Buyer Concessions

As a first home buyer in Victoria, you may be eligible for savings on stamp duty:

• Full stamp duty exemption for properties valued up to $600,000
• Stamp duty concession (reduced rate) for properties valued between $600,001 and $750,000
• First Home Owner Grant (FHOG) of $10,000 for newly built homes valued up to $750,000

Your solicitor can confirm your eligibility and ensure the correct concessions are applied. These savings can amount to tens of thousands of dollars, so it's important to get it right.

Note: Thresholds and amounts are current as at the date of publication. Check the State Revenue Office website for the latest figures.

Common Mistakes First Home Buyers Make

Not getting the Section 32 reviewed before auction
This is the most common and most costly mistake. If there's an issue with the property that would have changed your mind, you have no way out after auction.

Skipping the pre-settlement inspection
Always inspect the property before settlement to confirm it's in the same condition as when you signed the contract.

Not budgeting for extra costs
Beyond the purchase price, budget for stamp duty (if applicable), solicitor fees, building and pest inspections, loan establishment fees, and moving costs.

Assuming your bank will handle everything
Your bank handles the loan. Your solicitor handles the legal transfer of ownership. They're two separate processes that need to work together.

It's a Big Step - Make Sure You're Supported

Buying your first home should be exciting, not stressful. Having the right team around you - a good solicitor, a reliable mortgage broker, and a building inspector - makes the whole process smoother.

Getting ready to buy your first home? Our conveyancing team can guide you through every step of the process. Call us on (03) 9787 4511 or book a consultation.