Signed the Contract? What Happens Before Settlement

You've found the place. The agent slides a contract across the table, your partner squeezes your hand, and you both sign.

Then you walk out to the car and realise you have no idea what happens next.

That gap between signing and getting the keys is where most first home buyers feel lost. Here's how it works in Victoria, step by step.

Before you sign, read the Section 32

In Victoria the seller has to give you a vendor's statement, called a Section 32, before you sign the contract. It covers things like mortgages on the title, easements, planning controls, rates and building permits.

It's a dense read. Most buyers get a conveyancer or lawyer to check it, and the contract, before signing. A fee of a few hundred dollars here is cheap next to finding out about an easement through the backyard later.

If you sign without ever being given the Section 32, the law lets you get out of the contract. But the easier path is to ask for it early, at the open home.

The cooling-off period, and when you don't get one

Buy by private sale and you usually get three business days to change your mind. The clock starts from the day you sign, not the day the seller signs.

To cool off, you give written notice to the seller or their agent. You get your money back, less $100 or 0.2 per cent of the price, whichever is more. On a $600,000 home that's $1,200.

Here's the catch. There's no cooling-off if you buy at auction, or within three clear business days before or after a public auction. Win on Saturday and you're committed when the hammer falls.

That's why pre-approval matters so much if you're bidding. If you'd like to talk through where your numbers sit before you start making offers, book a chat.

The deposit and the finance clause

When you sign, you'll usually pay a deposit to the agent's trust account. How much is set in the contract and can sometimes be negotiated, so ask before you sign rather than after.

In a private sale, your contract can include a finance clause. That gives you a set number of days to get formal loan approval. If the lender says no within that window, you can usually end the contract without losing your deposit.

At auction there's normally no finance clause. That's the trade-off for buying under the hammer.

Turning pre-approval into a real approval

Pre-approval isn't the final word. Once you've signed, your broker sends the contract to the lender and the real assessment starts.

• The valuation. The lender has a valuer check the property is worth roughly what you paid. If it comes in low, the gap usually has to come from your savings.
• The paperwork refresh. Payslips and bank statements may need updating if a few weeks have passed.
• Formal approval. Then the lender issues loan documents for you to sign and return.

Meanwhile your conveyancer is doing searches on the title, checking rates and water adjustments, and talking to the seller's side.

The final weeks before settlement

Settlement day is set in the contract. In the lead up, a few things land on your desk.

• Insurance. Many lenders want building insurance in place from the day you sign or before settlement. Check what your contract and lender ask for.
• Stamp duty. It's paid at settlement. As a first home buyer in Victoria there's no duty on a home up to $600,000, with a sliding concession up to $750,000.
• The pre-settlement inspection. You can usually walk through in the final week to check the place is in the condition you bought it.

On the day itself, you don't go anywhere. The lawyers and lenders settle electronically, your conveyancer rings, and the agent hands over the keys.

What this means for your timeline

If you're hoping to be in before Christmas, count backwards. Signing is the start of the process, not the end. Weeks of valuation, approval and conveyancing sit between the contract and the keys.

We've helped over 100 first home buyers into the market and we're rated 10/10 on Reviewr by over 100 customers. If you want someone in your corner from offer to keys, book a chat.

Let's get you into a home.

Figures verified 5 October 2026 against Consumer Affairs Victoria (cooling-off and Section 32) and the State Revenue Office Victoria (first home buyer duty exemption and concession).