For many couples, buying a home together is the biggest financial decision they will ever make. Most of the attention goes to finding the right property and securing finance, but the legal decisions made along the way, such as how you own the property and whether your wills reflect that ownership, can matter just as much in the long run.
This guide covers what Victorian home buyers should understand about conveyancing, co-ownership, and protecting their investment.
This article is general information only. Government schemes and thresholds change, so check current details with the State Revenue Office and get advice on your situation.
1. What Conveyancing Actually Involves
Conveyancing is the legal process of transferring property ownership from seller to buyer. In Victoria, it typically includes:
- Reviewing the Section 32 Vendor Statement, which discloses title details, planning information, easements, outgoings, and building permits
- Reviewing the contract of sale and advising on special conditions
- Conducting searches, including title, planning, and council rates
- Liaising with your lender and arranging settlement
- Calculating adjustments for rates and other outgoings
- Lodging the transfer and stamp duty, usually through the PEXA electronic settlement platform
Engaging qualified conveyancing lawyers before you sign anything is one of the best protections available. Issues in the Section 32, such as unexpected easements, unapproved building works, or restrictive covenants, are far easier to deal with before the contract is binding.
2. Understand Cooling-Off Rights
For most private sales of residential property in Victoria, buyers have a three business day cooling-off period after signing. If you withdraw during that period, the seller can keep a small amount, generally the greater of $100 or 0.2% of the purchase price.
There are important exceptions. There is generally no cooling-off period if you buy at auction or within three business days before or after an auction. Get the contract reviewed before bidding.
3. Check Your First Home Buyer Entitlements
Victorian first home buyers may be eligible for stamp duty exemptions or concessions and, for new homes, the First Home Owner Grant. At the time of writing, a full stamp duty exemption applies to eligible first home purchases up to $600,000, with a concession up to $750,000, but thresholds and eligibility rules can change. Your conveyancer can confirm what applies to your purchase.
4. Joint Tenants or Tenants in Common?
When two or more people buy property together, they must decide how to hold the title. This decision is often made quickly at settlement, but it has major long-term consequences.
Joint tenancy
- Both owners own the whole property together
- If one owner dies, the property passes automatically to the surviving owner, regardless of what the deceased person’s will says
- Common for married and long-term couples
Tenants in common
- Each owner holds a defined share, such as 50/50 or 70/30
- On death, each owner’s share passes according to their will, not automatically to the co-owner
- Common for blended families, friends buying together, or couples contributing unequal deposits
Neither option is right for everyone. A couple where one partner has children from a previous relationship, for example, may prefer tenants in common so that each partner can leave their share to their own children.
5. Update Your Will After Buying
Buying a home is one of the most common reasons to make or update a will, yet many couples skip it.
Without a valid will, your estate is distributed according to Victoria’s intestacy rules, which may not reflect your wishes. And if you hold the property as tenants in common, your will decides what happens to your share.
A lawyer for wills can help you:
- Make sure your will matches how you hold your property
- Appoint executors and guardians for children
- Protect a surviving partner’s right to stay in the home
- Set up enduring powers of attorney, so someone can manage your affairs, including your share of the property, if you lose capacity
6. Protect Unequal Contributions
If one partner contributes more to the deposit, perhaps through savings, an inheritance, or family help, it’s worth documenting that. Options include:
- Holding the property as tenants in common in unequal shares
- Recording contributions in writing
- For married or de facto couples, considering a Binding Financial Agreement
If family members contribute money, clarify whether it is a gift or a loan, ideally in writing. This can matter greatly if circumstances change.
7. If the Relationship Ends
No one buys a home expecting to separate, but planning ahead helps if it happens. On separation, how the property is divided is determined under the Family Law Act, not simply by how it is titled. Contributions, future needs, and other factors are all considered.
Strict time limits also apply for property settlement: 12 months after a divorce becomes final for married couples, and two years after separation for de facto couples. Experienced divorce solicitors can advise on options such as one partner buying the other out, selling and dividing the proceeds, or formalising arrangements by consent orders.
A Quick Checklist for Couples Buying Together
- Engage a conveyancer or property lawyer before signing or bidding
- Review the Section 32 Vendor Statement and contract carefully
- Confirm first home buyer entitlements
- Decide between joint tenancy and tenants in common
- Document unequal contributions or family loans
- Make or update your wills after settlement
- Set up enduring powers of attorney
Final Thoughts
A home is a long-term investment, and the legal decisions you make while buying it shape what happens for years afterwards. A little advice before signing and a quick review of your will after settlement can protect both you and your partner, whatever the future brings.
