When selling a property in Victoria, vendors have a legal responsibility to hand over the property and any goods sold with the property in the same condition as it was on the day of sale at settlement. This excludes normal fair wear and tear. The day of sale is the date when all parties have signed the contract of sale.
When does a vendor’s responsibility end?
In Victoria, a vendor must continue maintaining the property until the day of settlement. Only once settlement is complete does the responsibility of the property shift to the purchaser. This responsibility may shift to the purchaser sooner if the purchaser has been given early access to occupy the property.
For example, if strong winds damage a gate on the property before settlement, it is the vendor’s responsibility to repair it. However, if the purchaser is already occupying the property, then the vendor is not obligated to repair it. A qualified licensed conveyancer in Victoria can advise you on exactly where your obligations begin and end.
How does a purchaser check the condition of the property at settlement?
The purchaser has the right to conduct a final inspection of the property before settlement. The final inspection usually takes place within seven days before settlement. It is at this stage of the conveyancing process when the purchaser checks the property to see if the property is in the same condition as the day of sale.
The final inspection is the purchaser’s opportunity to check that the property is in the same condition as the day of sale, and that the vendor has fulfilled their responsibilities. This allows the purchaser to identify whether there has been any damage to the property or any of the goods included in the sale since the day they signed the contract.
For example, the final inspection will pick up if a washing machine has been removed from the property when it was an item included in the sale and should not have been removed, or if a glass window that was not broken on the day of sale is now broken.
What happens if problems are found at the final inspection?
If any issues or damage has been identified at the final inspection, it does not give the purchaser the right to delay settlement. However, they may:
- request the vendor to repair the damage;
- ask for missing good(s) to be replaced;
- negotiate a reduction in the purchase price;
- claim compensation from the vendor; or
- withhold part of the settlement funds until the issue is resolved.
For example, if the heating has stopped working sometime between the day of sale and settlement, the vendor may need to either repair or replace it at their cost.
Do vendors have to clean the property?
In Victoria, there is no legal requirement for vendors to professionally clean the property before settlement unless specified under the contract of sale. The vendors are only required to hand over the property in the same condition as the day of sale except for fair wear and tear.
With that said, the common practice is for the vendors to leave the property in a tidy and presentable condition as a matter of courtesy and as an act of good faith. This can help avoid disputes from arising and support a smoother handover to the purchaser.
Need Help?
If you are not sure about your obligations as the vendor when selling your property, contact our property conveyancing lawyers in Melbourne at hello@wlegalgroup.com.au or call any of our Australian phone numbers.
