Melbourne Property Disputes Lawyer

Property disputes in Victoria follow different pathways depending on the type: co-owner disputes generally go to the Victorian Civil and Administrative Tribunal (VCAT), rescission of off-the-plan contracts under sunset clauses is restricted by the Sale of Land Act 1962, fencing disputes go to the Magistrates' Court, and domestic building disputes generally go through Domestic Building Dispute Resolution Victoria (DBDRV) first. Choosing the right pathway and meeting deadlines often matters as much as the dispute itself. We help owners, buyers, sellers and investors in Mandarin, Cantonese or English.

Key points

• Co-ownership disputes can be brought at VCAT under Part IV of the Property Law Act 1958. VCAT can order sale or division of co-owned land, divide the proceeds, and deal with accounts for rent and expenses.
• To rescind a residential off-the-plan contract under a sunset clause, the vendor needs the purchaser's written consent (after at least 28 days' written notice) or a Supreme Court order.
• After a caveat lapsing notice is issued, the caveator must obtain a court order within the notice period or the caveat may lapse.
• A neighbour has 30 days to respond to a fencing notice, and only the Magistrates' Court can decide fencing disputes in Victoria.
• Domestic building disputes generally must go through DBDRV (now part of the Building and Plumbing Commission) before VCAT, except for injunction applications.

Co-owner disputes: sale or division?

Siblings inheriting a property, friends buying together, or former partners holding an investment property can all end up with one owner wanting to sell and the other not. Under Part IV of the Property Law Act 1958, only a co-owner can apply to VCAT. VCAT can order sale or physical division, decide how proceeds are split, and make adjustments for mortgage payments, repairs or rent received by one owner.

Note that once the property is transferred to a buyer, former co-owners can no longer apply. Property disputes between married or de facto partners usually fall under family law and may belong in the federal family courts instead. Gathering title, contribution and expense records and trying negotiation or mediation first often saves cost.

Contract default, rescission and deposit disputes

Common disputes include a purchaser failing to settle on time, a vendor failing to give vacant possession, finance not being approved, and undisclosed issues found before settlement. Generally the non-defaulting party must serve a default notice under the contract and allow the remedy period to expire before ending the contract. Getting the steps wrong can turn you into the party in breach.

• Deposit: if the purchaser defaults, the vendor can usually keep the deposit under the contract and claim losses; if the vendor defaults, the purchaser can generally seek its return.
• Vendor's statement (section 32): if disclosure is defective, the purchaser may in some cases be able to rescind before settlement.
• Specific performance: the innocent party may instead ask a court to order the other side to complete.

Sunset clauses in off-the-plan contracts

Off-the-plan contracts usually set a sunset date by which the plan of subdivision must be registered, or the contract can be ended. To stop vendors using this to resell at a higher price, the Sale of Land Act 1962 requires a vendor of a residential off-the-plan contract to obtain the purchaser's written consent or a Supreme Court order before rescinding under a sunset clause. The vendor must give at least 28 days' written notice with reasons, and the Court considers whether rescission is just and equitable and can order reasonable compensation to the purchaser.

For example, an overseas buyer receives a developer's notice asking them to 'consent' to rescission within a set time. The buyer is not obliged to consent and should get advice on the current value, the reasons for delay and their options.

Caveats: protecting an interest, with risks attached

Under the Transfer of Land Act 1958, a person with a caveatable interest in land, such as a purchaser under a contract or a lender with a written charge, can lodge a caveat to stop dealings without notice. Not every debt supports a caveat. The other party can ask the Registrar to issue a lapsing notice, and the caveator must obtain a court order within the deadline or the caveat lapses and generally cannot be relodged on the same interest. Lodging a caveat without reasonable cause can also lead to liability for compensation.

Owners corporation, fencing and building disputes

Owners corporations: governed by the Owners Corporations Act 2006. Disputes over unpaid fees, rule breaches, noise or repair responsibility generally go through the owners corporation's internal complaints process first, then optional mediation through the Dispute Settlement Centre of Victoria (if all parties agree), and then VCAT.

Fences (Fences Act 1968): neighbours generally share the cost of a sufficient dividing fence equally. One owner can serve a fencing notice and the neighbour has 30 days to respond. If they cannot agree, the Magistrates' Court decides.

Domestic building disputes: defects, delays and payment disputes between owners and builders generally must go to DBDRV first (now part of the Building and Plumbing Commission), and a certificate of conciliation or similar document is needed before applying to VCAT. Injunction applications are an exception.

Frequently asked questions

My sibling and I co-own an inherited house and they won't sell. What can I do?

If you are a registered co-owner, you can apply to VCAT under Part IV of the Property Law Act 1958 for sale or division, and VCAT can also deal with the split of proceeds and adjustments for expenses. Negotiation or mediation first is usually recommended.

The developer says the sunset date has passed and wants me to agree to rescind. Do I have to?

No. For a residential off-the-plan contract, the vendor needs your written consent or a Supreme Court order to rescind under a sunset clause, and the Court can order compensation. Get advice before you reply.

The buyer failed to settle on time. Can the seller keep the deposit straight away?

Generally the seller must first serve a default notice under the contract and wait for the remedy period to expire before ending the contract and dealing with the deposit. Acting too early can invite a counter-claim.

Someone owes me money. Can I put a caveat on their house?

An ordinary debt is usually not enough. You need a caveatable interest in the land, such as a written charge. Lodging without reasonable cause can expose you to a compensation claim.

Can I go straight to VCAT about a dispute with my builder?

For domestic building disputes you generally need to go through DBDRV first and obtain the relevant document before applying to VCAT, except when seeking an injunction.

Property disputes often involve strict deadlines, so early advice helps. Call 03 9602 3988 to book a meeting at our Melbourne CBD office at Level 2, 262 Queen Street, or by video, in Mandarin, Cantonese or English. Property matters are handled by Tan Chua.

This article is general information only and is not legal advice.

Reviewed by Tan Chua, Lawyer, Chua Tan Associates | Last updated: October 2026