The Complete Due Diligence Checklist for Victorian Property Buyers

Buying property in Victoria is one of the largest financial commitments you'll ever make. Yet many buyers rush through the process, relying on the agent's assurances or a quick glance at the contract. A proper due diligence process can save you tens of thousands of dollars — or prevent you from buying a property that will cause years of headaches.

This checklist covers every item you should investigate before signing a Contract of Sale in Victoria, whether you're buying at auction or via private sale.

What is due diligence?

Due diligence is the process of investigating a property before you commit to buying it. In Victoria, the vendor is legally required to provide certain disclosures through the Section 32 Vendor's Statement, but the information they provide is only the starting point. It's your responsibility to verify the facts and investigate matters that the vendor isn't required to disclose.

Step 1: Review the Section 32 Vendor's Statement

The Section 32 is your primary disclosure document under the Sale of Land Act 1962. It must be provided to you before you sign the contract. Key items to check include:

• Title search: Confirm the registered proprietor matches the vendor named in the contract. Check for any encumbrances including easements, covenants, and restrictions on the title.
• Planning certificate: Verify the property's planning zone and any overlays that apply. Heritage, bushfire, and flood overlays can significantly restrict what you can do with the property.
• Owner's Corporation certificate: If the property has an Owner's Corporation, check fees, special levies, insurance, meeting minutes, and sinking fund balances.
• Council rates and land tax: Note the current annual amounts. Council rates in Melbourne typically range from $1,500 to $4,000 per year depending on location and property value.
• Outgoings and services: Check what services are connected (water, sewerage, gas, electricity) and any outstanding charges.

Step 2: Arrange inspections

The vendor is not required to disclose building defects, pest damage, or structural problems. These are your responsibility to discover. At a minimum, arrange:

• Building inspection ($400–$800): A qualified building inspector will check the structural integrity, roof, walls, sub-floor, plumbing, and electrical. See our building inspection guide for details on what to expect.
• Pest inspection ($250–$400): Particularly important for older homes and properties with timber framing. Termite damage alone can cost $20,000 or more to remediate.
• Strata inspection ($200–$350): For apartments and townhouses, a strata inspector reviews the OC records in depth, including upcoming works and financial health.

Step 3: Review the Contract of Sale

The Contract of Sale sets out the terms of your purchase. Pay close attention to:

• Settlement period: Standard is 30, 60, or 90 days. Make sure this aligns with your finance timeline.
• Deposit amount: Typically 10% of the purchase price, though 5% is sometimes negotiable for private sales.
• Special conditions: Subject to finance, subject to building inspection, and any other conditions that protect your interests.
• Inclusions and exclusions:Confirm exactly what is included in the sale — fixtures, fittings, appliances, window coverings, and garden items.

Step 4: Financial due diligence

• Obtain formal finance pre-approval (not just a pre-qualification) before signing
• Calculate stamp duty and all hidden costs
• Confirm your deposit funds are available (bank cheque or electronic transfer)
• Factor in inspection costs, legal fees ($800–$2,500 for conveyancing), and moving costs

Step 5: Council and government checks

• Council building permits: Check whether any recent renovations or additions had proper permits and were signed off
• Road widening or acquisition: Confirm whether any part of the land is subject to a Public Acquisition Overlay
• Contaminated land register: Check the EPA Victoria register for any contamination history
• Flood and bushfire risk: Review the relevant overlays and check insurance availability and cost

Step 6: Neighbourhood and practical checks

• Visit the property at different times of day (morning, evening, weekend)
• Check mobile reception inside the property
• Research planned developments nearby using council planning records
• Check NBN availability and connection type
• Drive the commute to your workplace during peak hours
• Check noise levels (traffic, trains, aircraft, neighbouring businesses)

Don't skip due diligence

A thorough due diligence process typically costs between $1,000 and $2,500 in inspections and legal fees. That investment protects a purchase that could be $500,000, $1 million, or more. Skipping any step is a false economy.

Start your due diligence with a Pre Contract Review to quickly identify potential issues in your Section 32 and Contract of Sale. It flags the items that need your attention so you can focus your inspections and solicitor review where it matters most.