Due diligence is the comprehensive process of investigating a property before you finalise the purchase, ensuring you know exactly what you are buying, including any hidden physical or legal defects. From a conveyancer’s perspective, this is the most critical phase of property acquisition. At CityLink Conveyancing, we urge all buyers to rigorously investigate their prospective homes, combining our legal expertise with thorough physical inspections to guarantee a 100%secure investment.
Understanding the Legal and Physical Landscape
What is the Section 32 Vendor’s Statement?
Section 32 statement is a compulsory document given by the seller under Victoria and which details some important legal information about the property. The study of this is the bread and butter of due diligence in law. It discloses information on mortgages, covenants, easements and zoning restrictions. One of the most frequent errors is to sign a contract without an expert conveyancer taking note of the Section 32 first.
What is the importance of zoning and land use?
The local zoning that is provided by the local council determines what you can do with the land. Provided you intend to construct an extension, start a home business or divide it, the existing zoning may not be allowed. Also, with planning overlays ( e.g. heritage or bushfire overlays) may place very strict restrictions on what you can and cannot do with the property.
Physical Inspections and Surroundings
Is it advisable to have a building and pest inspection?
Absolutely. Although your conveyancer is conducting the legal title, you have to examine the physical structure. Hidden, expensive, problems such as structural subsidence, illegal renovations, or even active termite infestations will be revealed during independent building and pest inspections. In case there are any unapproved building works that you could be the beneficiary, and pay heavy fines to the council.
What impact does the environment have on the purchase?
You have to put into consideration the environment of the property. Is it located in a high-risk zone of flood or bush fire? Is there a history of contamination with the soil (especially in the older industrial regions)? Not only do these factors impact on your safety and enjoyment of the property but they can also greatly increase your home insurance premiums.
Owners Corporations and Strata Living
What are the required checks of apartments and units?
When you are purchasing a unit, townhouse or apartment, then chances are you are purchasing into an Owners Corporation (previously body corporate). One of your due diligence should be to review the certificate of Owners Corporation. You should also check the financial health of the corporation, and there are enough funds in the maintenance plan and that there are no pending, expensive special levies to repair major buildings (such as replacing combustible cladding).
Comparing Due Diligence: DIY vs. Professional Legal Review
| Due Diligence Area | Buyer’s Responsibility (DIY) | CityLink Conveyancing’s Role |
| Physical Condition | Arranging building & pest inspections | Advising on contract clauses for inspection outcomes |
| Neighbourhood | Checking traffic, noise, and local amenities | Reviewing proposed government infrastructure plans |
| Title & Boundaries | Measuring the physical fence lines | Verifying legal title dimensions and registering caveats |
| Legal Restrictions | Reading standard council brochures | Translating complex easements and restrictive covenants |
Partner with CityLink Conveyancing for Complete Peace of Mind
The Consumer Affairs Victoria due diligence checklist can be daunting. Through collaboration with CityLink Conveyancing, you can be sure that there is no legal stone left unturned. We break down the contracts and statements of the vendors in order that you can proceed with complete assurance.
Frequently Asked Questions (FAQs)
- Is the due diligence checklist legally binding?
The official Consumer Affairs Victoria due diligence checklist is a guide provided to buyers; it is not a legally binding contract itself, but rather an educational tool to help you identify what to look for before buying.
- How much time do I have for due diligence?
If purchasing via private treaty, you can negotiate a ‘subject to building inspection’ or ‘subject to finance’ clause, usually giving you 7to 14 days. At auction, properties are sold unconditionally, meaning all due diligence must be completed before you bid.
- What is a caveat and should I lodge one?
A caveat is a legal notice registered on the property’s title indicating your interest in it. We highly recommend lodging one immediately after signing the contract to prevent the seller from dealing the property to a third party.
- Does the seller have to disclose everything?
While sellers must provide a Section 32, the principle of caveat emptor (buyer beware) still largely applies to the physical condition of the property. The seller does not have to disclose a leaking roof, which is why your own inspections are vital.
- How can CityLink Conveyancing help with easements?
An easement gives another party (like a water board or local council) the right to use a portion of your land. We will identify any easements on the title and explain exactly how they restrict your use of the property, such as preventing you from building a pool or shed over a specific area.
