Selling property in Victoria: a conveyancing checklist

A residential sale in Victoria is well-trodden ground for lawyers, conveyancers and agents. That familiarity makes it easy to overlook that, for the vendor, it is often a significant and stressful transaction. Understanding the sequence — and where the work sits — helps.

1. Before listing

• Engage your lawyer early. A section 32 statement takes time to prepare. Certificates from council, water, land tax and (for units) the owners corporation must be ordered. Starting this early avoids delays once the property is on the market.
• Confirm ownership details. Ensure the title is in your name (or the correct entity's name) and that any historic mortgage discharge or transmission is registered. Fixing title irregularities takes weeks.
• Locate building permits. The section 32 must disclose building permits issued in the previous seven years for works that required one. Track them down before the section 32 is finalised.
• Choose your agent and method of sale. Private sale or auction. Note that auction purchases have no cooling-off, which limits negotiation flexibility on the day but often produces a firm contract quickly.

2. Preparing the section 32 and contract

Your lawyer prepares the section 32 vendor statement and a contract of sale in either the REIV standard form or a bespoke commercial form. The section 32 must include (as applicable):

• Title and plan search.
• Rates and outgoings certificates from council, water and land tax.
• Planning zoning and overlays.
• Building permit history.
• Owners corporation certificate (for units and apartments).
• Any known notices, orders or agreements affecting the property.

The contract sets out the price, deposit, settlement date and any special conditions. Where you are including chattels — dishwashers, curtains, garden sheds — those are listed in the contract.

3. Listing and marketing

Once the section 32 is ready, the agent can begin marketing. In Victoria, the section 32 must be provided to prospective purchasers before they sign, and it is customary for the agent to hold the section 32 and contract for signing at the property inspection or auction.

Under the underquoting rules administered by Consumer Affairs Victoria, agents must not advertise the property at a price below the vendor's reserve (or acceptable price) or below any recent offer. Your agent handles compliance with those rules; your job is to be realistic in setting the range.

4. Signing

At auction, the successful bidder signs the contract immediately. For a private sale, the agent presents an offer and negotiates on your behalf; once accepted, both parties sign the contract.

Deposit is generally 10% of the price. It is held by the agent (or legal representative) in trust and released to the vendor after settlement, subject to any cooling-off or condition failure.

5. Between contract and settlement

In this window, your lawyer:

1. Confirms discharge details with your mortgagee, if any.
2. Coordinates verification of identity for the electronic transfer.
3. Reviews and executes transfer documents.
4. Deals with the purchaser's requisitions on title.
5. Calculates adjustments for rates, water and (for units) owners corporation fees to the settlement date.
6. Books settlement on PEXA.

6. Cooling-off and conditions

If the sale is not at auction, the purchaser has three clear business days to cool off, subject to statutory exceptions. If they do so, the deposit is returned less a penalty amount.

If the contract is subject to finance or another condition, monitor the deadlines. Silence from the purchaser after the finance date has passed usually means the condition has lapsed and the contract is unconditional — but do not assume; ask your lawyer to confirm.

7. Settlement day

Settlement is conducted electronically on PEXA. Once funds are received, your lawyer discharges the mortgage, the transfer is registered at Land Use Victoria and the agent is authorised to release the keys. The balance of proceeds is transferred to your nominated account, usually the same day.

8. After settlement

• Council, water and (if applicable) owners corporation records are updated with the new owner's details.
• Land tax on the property (if applicable) is assessed on the ownership at 31 December each year — you may still receive an assessment for the year in which you sold.
• Your final rates and water accounts, adjusted at settlement, close out under your name.
• Capital gains tax (CGT) may apply. If the property was your principal place of residence for the whole ownership period, the main residence exemption normally applies. Speak with your accountant.

Common vendor mistakes

• Delaying instructions to a lawyer until after the property is listed, causing the section 32 to be rushed.
• Failing to disclose known adverse notices or defects.
• Assuming that chattels not listed will pass to the purchaser (they may not).
• Overlooking capital gains tax where the property was an investment.
• Not clearing possessions from the property in time for the pre-settlement inspection.

For assistance selling residential property in Victoria, see our residential conveyancing service.

Preparing to list

Vendors are best positioned when the section 32 statement is prepared before the property is listed and the contract of sale is ready to hand to prospective purchasers on request. The agent's marketing schedule, the vendor's expected settlement date, and any works to be completed before settlement are addressed at the same time so that the contract and section 32 reflect the property that will actually be sold.

Deposit release and section 27

A vendor may in defined circumstances request early release of the deposit under section 27 of the Sale of Land Act 1962 (Vic). Release generally requires the vendor to satisfy the purchaser that any mortgage or caveat on title is at or below a specified proportion of the sale price, and to serve a formal notice. Purchasers have a defined period to object. Not every sale is a candidate for early release, and the process should not be started without legal advice.

Preparing for settlement

The vendor's mortgage discharge, water and rates authorities, owners corporation authorities and, where applicable, land tax clearance are ordinarily arranged in the weeks before settlement so that adjustments and payout figures are available on the day. A vendor whose lender is slow to book the discharge is the most common cause of vendor-side settlement delays; engaging with the lender early is the practical mitigation.