Buying Property in Victoria? 2025’s New Defect Laws Demand These 5 Questions

2025. The Victorian property market has two faces.

Face one: The “Defect Crisis.” Leaking balconies in Melbourne apartments. Cracking slabs in the growth corridors. For many Victorian buyers, the dream home became a litigation nightmare.

Face two: The Reform.

The Victorian Government finally acted. The old VBA is dead. The Building and Plumbing Commission (BPC)  is the new sheriff. The laws are tougher. But here is the catch: The protections are not automatic. You must activate them.

If you are buying a home in Victoria this year, the contract of sale is your only shield. Do not just sign it. Interrogate it.

Ask the agent these five questions.

1. For Apartments: “Where is the 2% Bond?”

• • • The Law:  Under the Building Legislation Amendment (Buyer Protections) Act 2025, developers of Victorian residential buildings (>3 storeys) must lodge a Developer Bond .
    • The Logic:  It is 2% of the total build cost. Held by the regulator. If the basement floods or the lift dies within two years, this money fixes it. Not your strata levies.
    • The Trap:  Some developers will try to rush the occupancy permit to bypass this.
    • The Question: “Confirm in writing that this project complies with the Victorian Developer Bond Scheme. Has the bond been lodged?”

2. For Houses: “Is the Insurance ‘First Resort’?” 

• • • The Law:  Remember the old Domestic Building Insurance (DBI) in Victoria? It was “Junk Insurance.” You could only claim if the builder died or vanished. That era is over. The 2025 scheme for low-rise homes is “First Resort.”
    • The Logic: Defect found? You claim immediately. You do not wait for the builder’s insolvency. This is a game-changer for Victorian homebuyers.
    • The Question: “I need the Certificate of Currency. Does this policy strictly fall under the 2025 First Resort scheme?”

3. The Hidden Risks: “Show me the Pre-Lining Reports.” 

• • • The Law:  To fight the “leaky building” syndrome, Victoria introduced mandatory inspection stages in 2025: Pre-Lining and Waterproofing .
    • The Logic:  Defects hide behind plaster. Once the tiles are laid, you are blind. An inspection after completion is useless. You need the report from during the build.
    • The Question: “I require copies of the independent surveyor’s reports for waterproofing and pre-lining. Were any ‘Directions to Fix’ issued?”

4. The Handover: “Where is the Building Manual?” 

• • • The Law:  A handshake is not a handover. The new Victorian regulations mandate a Building Manual  for many new builds.
    • The Logic:  This is the DNA of your property. As-built drawings. Fire safety systems. Wiring diagrams. Without it, future maintenance is pure guesswork.
    • The Question: “Is a compliant Building Manual a specific deliverable in this contract? I want to see the draft index.”

5. The Gold Standard: “Do you have Decennial Liability?” 

• • • The Law: The bond is mandatory. Decennial Liability Insurance (DLI)  is voluntary. It covers major structural defects for 10 years.
    • The Logic: It is the ultimate seal of quality in the Victorian construction industry. If a developer has DLI, a private insurer has audited the build. It de-risks your investment.
    • The Question: “Does this building have Decennial Liability Insurance? If not, why?”

The Verdict 

A house is a product. Like a car. It carries risk. Brochures lie. Contracts do not.

At Prime Legal Conveyancing , we know the Victorian landscape. We don’t just read the Section 32; we dissect it. We check for the bond. We verify the insurance. We ensure the Building Manual is written in black and white.

Buying a new build in Victoria? Send us the contract. We will tell you if it is a solid asset or a lemon waiting to happen.

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