A fresh look at the fine print - what buyers need to know now
The Law Institute of Victoria (LIV) has updated its General Conditions on 1 September 2025. These changes will not affect every property contract in Victoria as sellers are not required to utilise the updated contract.
Notwithstanding the above, we will take a deeper dive into the updated contract and outline how the changes impact buyers for those who may come across the new contract. While some updates are technical, others shift risk and responsibility. This guide breaks down the key changes.
Director Guarantees (GC 3)
Sellers can now require all directors to guarantee the contract. This spreads liability evenly but increases personal risk for each director.
Domestic Building Insurance (GC 12)
Sellers must provide domestic building insurance (where applicable) within 14 days of request. This was previously 21 days. Buyers get faster access to protection documents.
Deposit Release (GC 14)
The contract no longer contains any contractual provisions dealing with an early release of the deposit. Sellers must not assume that they can easily access the deposit and should confer with their legal representative.
Electronic Settlement Timing (GC 17)
Electronic settlement must occur during Electronic Lodgement Network Operators (ELNO) operating hours. This ensures support is available if issues arise.
Building Reports (GC 21)
Reports must be prepared by registered professionals. These include building surveyors, building inspectors, builders or architects. Reports must also follow Australian Standards. Buyers are allowed to end the contract if their reports identify a 'major defect'.
Pest Reports (GC 22)
Pest reports no longer need Victorian-licensed operators. They must meet Australian Standards. This broadens who can prepare reports but keeps quality consistent.
Outgoings and Rent (GC 23)
Complex assumptions and land tax adjustments are removed. This simplifies settlement statements.
Notices in ELNO (GC 27)
Messages in ELNO are not formal notices unless electronic laws apply. Important notices should be served outside the ELNO. This gives buyers more certainty.
Statutory Charges and Taxes (GC 28)
Land tax and windfall gains tax are excluded from apportionment. This clarifies who pays what. However, buyers should confer with their legal representative to address how the contract should deal with any windfall gains tax assessment that is likely to issue after the contract date.
Pre-Settlement Damage (GC 31)
Buyers can no longer nominate an amount of up to $5,000 to be withheld from both parties should a dispute occur around damages. Claims must be made directly against the seller. This reduces upfront security.
Late Interest Charges (GC 33)
The 2% interest surcharge is removed. Buyers now pay interest at the rate as set out in the Penalty Interest Rates Act 1983 (VIC) from time to time.
Purchaser Repudiation (GC 35)
Sellers post contract termination rights also apply where the seller accepts the buyer's repudiation.
Summary
The new conditions increase buyer responsibility. Key areas include director guarantees, deposit access and damage claims. Some protections are awarded, such as faster access to key insurance documents (where applicable) and clearer reporting standards. Buyers should seek legal advice before signing contracts under these new rules.
Quick Visual Summary
| Change Area | Impact on Buyers |
| Director Guarantees | All directors may need to sign guarantees |
| Insurance Timing | Faster access to building insurance documents (where applicable) |
| Deposit Release | Sellers can no longer assume likeliness around release |
| Settlement Timing | Support available during ELNO hours |
| Building Reports | Higher standards, wider providers |
| Pest Reports | Broader provider pool, consistent quality |
| Outgoings & Rent | Simpler settlement calculations |
| Notices in ELNO | Formal notices must be served properly |
| Statutory Charges | Clearer tax responsibilities |
| Pre-Settlement Damage | No fund withholding mechanism, direct claims only |
| Late Interest | Lower penalty rates |
| Repudiation | Sellers can act faster on defaults |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
