Selling Property in Victoria: A Practical Guide

Preparing for Sale

Preparation begins with the legal documentation. The vendor needs to instruct a lawyer or licensed conveyancer to prepare the section 32 statement and contract before the property is publicly marketed. These documents must be available to the agent and to potential purchasers.

Other preparation matters include:

• locating title documents, the certificate of title, and the most recent rates and water notices;
• for properties under owners corporation control, obtaining a current owners corporation certificate;
• identifying any building permits issued for works on the property and obtaining copies;
• checking whether the property is subject to any easements, covenants, planning overlays or notices;
• identifying chattels to be included or excluded; and
• addressing any caveats, mortgages or other encumbrances on the title.

Section 32 Requirements

The section 32 statement is the vendor's pre-contractual disclosure document. Its accuracy is the vendor's responsibility, not the agent's. Required disclosures include:

• title details, including registered easements, covenants and other encumbrances;
• planning information and any planning permits or proposals affecting the property;
• services connected and not connected;
• outgoings including council rates, water rates, land tax (where applicable) and owners corporation fees;
• owners corporation rules, financials, insurance and minutes of recent meetings (for properties within an owners corporation);
• any notices or orders issued by an authority; and
• whether the property is in a bushfire-prone or flood-affected area, where required.

Inaccurate or incomplete disclosure can give the purchaser the right to rescind, recover the deposit and pursue damages. Disclosure errors are one of the most common sources of post-contract disputes.

Agent Appointments

The agent's authority document (often the form titled "Exclusive Sales Authority" or similar) sets the terms of the agent's engagement. Vendors should review carefully:

• the term of the exclusive authority and any extensions;
• the commission and how it is calculated, including the treatment of GST;
• advertising and marketing costs and whether they are payable irrespective of the sale;
• the estimated selling price range, which is regulated under the Estate Agents Act 1980 (Vic) and the Sale of Land Act;
• the conduct of inspections and security responsibilities; and
• the treatment of post-authority sales to introduced purchasers.

Auctions Versus Private Sales

The choice between auction and private sale depends on the property, the market, and the vendor's risk preferences.

Auctions produce certainty quickly. The contract is unconditional on the fall of the hammer. There is no cooling-off period for the purchaser. In a strong market, competitive bidding can deliver a premium. In a weak market, a property that passes in still has to be sold, and post-auction negotiation can be unsatisfying.

Private sales allow negotiation, feedback and time. They expose the contract to the cooling-off right, which can disrupt the sale. Conditions about finance, building and pest inspections, and the sale of an existing property are common.

Contract Issues

The Law Institute and Real Estate Institute joint contract is the standard form. Where the agent prepares special conditions, the vendor's lawyer should review and adjust them. Common areas of negotiation include:

• deposit (10% is conventional; lower deposits should be justified);
• settlement period (commonly 30, 60 or 90 days);
• GST treatment, particularly for vacant land or new residential premises;
• chattels included and excluded;
• rent or licence-back arrangements where the vendor wishes to remain in possession after settlement; and
• special conditions about repairs, retention of funds for outstanding works, and access for inspections.

Settlement

Settlement is the day the purchase price is paid and title transfers. Victorian settlements occur on the PEXA platform, conducted by lawyers and conveyancers with the incoming and outgoing lenders.

Vendor responsibilities in the lead-up to settlement include:

• signing the transfer documents and verifying identity for PEXA;
• arranging discharge of any mortgage with the existing lender;
• providing keys, alarm codes and any other access materials at settlement;
• giving up vacant possession (or as otherwise agreed); and
• attending to any matters required by special conditions such as repairs.

Common Seller Mistakes

• Incomplete section 32. Omitting easements, planning overlays, owners corporation special levies or building permits. These omissions support rescission.
• Listing before documents are ready. Purchasers walk away when the documentation is not available; an auction without a section 32 should not proceed.
• Underquoting. Quoting a price range below the seller's reserve or below comparable sales evidence is a regulated offence.
• Removing fixtures after the contract. Disputes about removed light fittings, dishwashers and outdoor structures are common at the pre-settlement inspection.
• Ignoring the existing mortgage. Discharge requires lead time; the lender will not move fast just because settlement is the next day.
• Not telling Centrelink or the ATO. Sales of investment properties have CGT consequences; sales by aged pensioners can affect entitlements.

Practical Tips

Vendors who run a clean process tend to achieve better results. Practical tips include:

• instruct your lawyer before listing the property;
• answer purchaser enquiries through the lawyer rather than directly;
• keep records of all conversations and decisions during the sale process;
• think about timing — listing into a holiday weekend or against the football grand final is rarely the best option;
• be realistic about price expectations and revisit them based on inspection feedback; and
• plan for the practical move — connecting utilities at the new address, redirecting mail and arranging transport.

For purchasers, see our companion guide on buying property in Victoria, and for tenancy-related issues when selling a leased property, our guide on tenant rights in Victoria.

Frequently Asked Questions