Frequently Asked Questions

 When selling a property in Victoria, a vendor must disclose any material facts that could influence a buyer’s decision to purchase.

A material fact is information that would be important to a reasonable buyer when deciding whether to buy the property — or how much to pay for it.

Examples may include:

• Significant structural defects or known building issues
• Illegal or unapproved building works 
• Past use of the property for illegal activities 
• Serious safety risks 
• Notices, orders or disputes affecting the property 
• Restrictions on title that impact how the land can be used
   

Failing to disclose a material fact can result in serious consequences, including the purchaser terminating the contract.

If you are selling, obtaining advice early helps ensure you meet your disclosure obligations and avoid costly disputes.

.Foreign Resident Capital Gains Withholding (FRCGW) is a Federal Government requirement that applies when selling Australian real estate.

In most property sales, the purchaser must withhold a percentage of the purchase price at settlement and pay it directly to the Australian Taxation Office (ATO), unless the vendor provides a valid Clearance Certificate issued by the ATO.

For Australian residents selling property, a Clearance Certificate is obtained before settlement to ensure no amount is withheld.

If a vendor is a foreign resident for tax purposes, the withheld amount is credited toward their Capital Gains Tax liability when they lodge their tax return.

Failure to provide a Clearance Certificate can result in funds being withheld at settlement, which may significantly impact the amount the vendor receives.

We assist vendors in ensuring the appropriate documentation is obtained prior to settlement to avoid delays or unexpected deductions.

 Where there are multiple purchasers of a property the transfer of land can be drawn in the following ways:

Tenants in common – On the death of one of the persons owning the property the deceased person’s share of the property will pass to the beneficiaries specified in the deceased’s will.

Joint tenants – On the death of one of the persons owning the property the deceased person’s share of the property will pass to the joint owner irrespective of the terms of the deceased’s will.  

In many cases, yes.

When selling property in Victoria, vendors have strict disclosure obligations. Even if the works did not require a building permit, they may still need to be disclosed if they are considered a material fact or affect the property’s value, safety or use.

If works were completed as an Owner Builder within the past 6½ years, additional requirements may apply — including obtaining an Owner Builder Defects Report and domestic building insurance (where applicable).

If works required a permit and one was not obtained, this must be addressed before selling, as it may raise compliance issues and create risk for the purchaser.

Even minor renovations can become problematic if not properly disclosed, particularly where structural changes, plumbing, electrical or extensions are involved.

Obtaining advice early ensures you understand your obligations and helps avoid delays, disputes or potential claims after settlement.

If you suspect there may be illegal or unapproved building works on a property, you should not sign the Contract until you have obtained legal advice.

Once you sign, you are legally bound by the terms of the Contract. If the works were completed without the required permits or approvals, you could inherit significant risks — including council enforcement action, rectification costs, fines, or difficulties obtaining insurance or finance.

Illegal works may also affect the property’s value or your future plans to renovate or extend.

Before signing, your Conveyancer or Property Lawyer can:

• Review the Vendor’s Statement (Section 32)
• Check whether building permits and approvals are disclosed
• Request further information or documentation
• Negotiate special conditions to protect you
• Advise whether you should proceed, renegotiate or withdraw

Identifying issues early can save you substantial expense and stress later. Always seek advice before committing to the purchase.