Victoria Legal Requirements for Selling Property: Complete 2026 Guide
Legal Requirements for Selling Property in Victoria: What FSBO Sellers Must Know
See Complete Victoria Private Sale Guide
When selling property without a real estate agent in Victoria (FSBO - For Sale By Owner), understanding your legal obligations is essential. Victoria has specific property laws under the Sale of Land Act 1962 and Estate Agents Act 1980 that protect both sellers and buyers throughout the transaction process.
Whether you're selling a house in Melbourne, a unit in Geelong, or a property anywhere in Victoria, these legal requirements apply to all private property sales. By following these regulations and engaging qualified professionals, you can save $15,000-$25,000 in agent commission while maintaining full legal compliance.
See 8 steps to sell without agent in VIC
The Five Essential Legal Requirements in Victoria:
Contract of Sale prepared by licensed professional
Section 32 Vendor's Statement with all required certificates
Due Diligence Checklist completion
Full disclosure of property defects and issues
Deposit held in statutory trust account
Let's explore each requirement in detail to ensure your private sale in Victoria is legally compliant and successful.
Contract of Sale Requirements in Victoria
The Contract of Sale is the legally binding document that outlines all terms and conditions of your property transaction in Victoria. This document must be prepared by a licensed conveyancer or solicitor—it is illegal for sellers to prepare their own contracts.
Who Can Prepare Contracts in Victoria?
Only qualified professionals licensed in Victoria can prepare property contracts:
Licensed Conveyancer:
Specialized in property transfers and conveyancing
Cost: $1,000-$1,800 for standard residential sales
Ideal for straightforward property transactions
Licensed Solicitor:
Broader legal training beyond property law
Cost: $1,500-$2,500 for property sales
Better for complex situations (deceased estates, trusts, disputes)
Registered with Law Institute of Victoria
For most FSBO sales in Victoria, a licensed conveyancer provides the expertise you need at the best value.
What Must Be Included in Victorian Contracts?
Your Contract of Sale must contain:
Complete property description (address, lot/plan, title reference)
Purchase price and deposit amount
Settlement date (typically 30-90 days from contract signing)
Vendor (seller) and purchaser (buyer) details
Fixtures and chattels included/excluded
Special conditions (if any)
Finance terms (if buyer requires a loan)
Building and pest inspection clauses (if applicable)
Reference to attached Section 32 Vendor's Statement
Standard Contract Terms in Victoria
Settlement Period: Typically 30-60 days for private sales, though this is negotiable. Regional Victorian properties often have longer settlement periods (60-90 days) to accommodate buyer finance and relocation.
Deposit Amount: Standard is 10% of purchase price, though 5% deposits are increasingly common in Victoria's competitive market. For example:
$800,000 property = $80,000 deposit (10%) or $40,000 (5%)
$1,200,000 property = $120,000 deposit (10%) or $60,000 (5%)
Inclusions/Exclusions: Clearly specify what stays with the property (built-in appliances, curtains, light fittings) and what you're taking (free-standing furniture, artwork, outdoor equipment).
Section 32 Vendor's Statement: Victoria's Key Disclosure Document
What is a Section 32 Statement?
The Section 32 Vendor's Statement (also called Section 32, Vendor's Statement, or Contract Note) is a mandatory disclosure document required under Victoria's Sale of Land Act 1962. This document provides buyers with essential information about the property before they commit to purchase.
Critical Rule: You must provide the Section 32 to buyers before they sign the Contract of Sale. Failure to provide a complete and accurate Section 32 gives buyers extended rights to withdraw from the contract.
What Must Be Included in a Victorian Section 32?
Your conveyancer or solicitor will prepare the Section 32, which must include:
1. Title Information:
Copy of Certificate of Title or Torrens Title
Details of all registered proprietors (owners)
Mortgages, caveats, or encumbrances registered on title
Easements affecting the property
Covenants or restrictions on land use
2. Planning Certificate (Section 201 Statement): Obtained from your local council, showing:
Current zoning of the property
Planning scheme overlays and controls
Building permits and approvals
Outstanding planning applications
Any planning notices or orders
3. Zoning Certificate:
Confirmation of property zoning (residential, commercial, etc.)
Permitted and prohibited uses
Development restrictions
4. Outgoings:
Current council rates (annual and arrears if any)
Water rates and consumption charges
Land tax (if applicable)
Fire services levy
Any other property-related charges
5. Building Permits and Approvals:
List of building permits issued for the property
Occupancy permits (if applicable)
Building orders or notices from council
6. Owners Corporation Information (if applicable): For units, apartments, townhouses, or properties in owners corporations:
Copy of owners corporation rules and bylaws
Financial statements showing levy amounts
Outstanding levy notices
Minutes of recent owners corporation meetings
Building insurance details
Any special levies or major works planned
Manager's certificate
7. Pool and Spa Compliance: If your property has a swimming pool or spa:
Certificate of pool/spa barrier compliance
Pool safety checklist completed
Details of pool/spa registration
8. Infrastructure Contributions:
Growth areas infrastructure contribution (if applicable)
Development contributions or levies
Cost of Obtaining Section 32 Documents
Total cost for Section 32 preparation: $300-$800, depending on property type and location.
Breakdown:
Planning certificate: $60-$100
Title search: $30-$50
Zoning certificate: $50-$80
Building permits search: $40-$70
Owners corporation certificates: $150-$400 (if applicable)
Conveyancer preparation fee: Typically included in overall conveyancing cost
What Happens If Section 32 Is Incomplete?
If you don't provide a complete Section 32:
Buyers have extended cooling-off rights (potentially unlimited)
Buyers can rescind the contract within reasonable time after discovering omissions
You may face fines up to $19,826 for individuals
The sale can fall through even after contract signing
You could face legal action for compensation
Always ensure your Section 32 is complete and current before marketing your property.
Due Diligence Checklist: Buyer Responsibilities in Victoria
What is the Due Diligence Checklist?
Introduced in 2011, the Due Diligence Checklist is a document buyers must sign confirming they've conducted reasonable inquiries about the property before purchasing. This protects sellers from buyers claiming they weren't aware of property details readily available through public records.
What's on the Due Diligence Checklist?
Buyers must confirm they've investigated:
Property boundaries and dimensions
Contents of title documents and Section 32
Zoning and planning controls
Utility availability (water, electricity, gas, sewerage)
Soil conditions and environmental risks
Access to property and easements
Building permits and approvals
Heritage overlays or restrictions
Contamination or environmental hazards
Any other material factors affecting the property
How Does This Protect FSBO Sellers?
The Due Diligence Checklist shifts responsibility to buyers to conduct their own research. As a seller, you must:
Provide accurate Section 32 with all required information
Disclose known material facts
Answer buyer questions honestly
Once buyers sign the checklist, they cannot later claim they were unaware of information readily discoverable through council searches, title searches, or other public records.
Do You Need to Provide the Checklist?
Your conveyancer will provide the Due Diligence Checklist to buyers along with the Contract of Sale and Section 32. Buyers must sign and return it, though the contract is valid even if they don't complete it (the checklist primarily protects them, not you).
Disclosure Requirements When Selling Property in Victoria
What Must You Disclose to Buyers?
Victorian law requires sellers to disclose any "material facts" that could reasonably be expected to affect a buyer's decision to purchase or the price they're willing to pay. This includes both positive and negative information about the property.
Material Facts You Must Disclose
Structural Issues:
Foundation problems or subsidence
Significant cracks in walls or ceilings
Water damage or moisture problems
Roof defects or leaks
Structural movement or instability
Pest and Environmental Issues:
Current or previous termite infestation
Borer or other wood-destroying pests
Asbestos presence and location
Contaminated soil or groundwater
Mold or damp problems
Building and Compliance:
Unapproved building work or renovations
Work completed without required permits
Non-compliant structures or alterations
Outstanding building orders from council
Illegal granny flats or secondary dwellings
Legal and Statutory Issues:
Boundary disputes with neighbors
Unresolved legal proceedings affecting property
Outstanding council notices or orders
Tree preservation orders
Heritage restrictions
Compulsory acquisition proposals
Neighborhood Issues:
Significant noise pollution (airports, railways, highways)
Known neighbor disputes
Nearby developments that will significantly impact property
Loss of views due to approved developments
Utility and Service Issues:
Defective plumbing or electrical systems
Septic system problems
Drainage issues
Water supply limitations
No town sewerage connection (if in urban area)
Previous Damage:
Fire or flood damage (even if repaired)
Storm damage
Vehicle impact
Any major insurance claims
How to Disclose Material Facts
In the Section 32: Your conveyancer will include a disclosure section where you list known defects and issues. Be specific:
"Termite damage in rear bedroom wall, treated in 2023 by [company name]"
"Bathroom renovation in 2020 completed without building permit"
"Small crack in northeastern foundation wall, assessed by structural engineer in 2024 as non-structural"
In Writing to Buyers: For issues discovered after Section 32 is prepared, provide written disclosure immediately:
Send via email with read receipt
Keep copies of all correspondence
Have your conveyancer send formal notices if serious
During Inspections: Be honest when buyers ask questions during viewings. Don't hide defects or downplay issues. If you don't know the answer, say so and offer to find out.
What Happens If You Don't Disclose?
Non-disclosure of material facts can result in:
Contract Rescission: Buyers can cancel the contract and receive their deposit back, even after cooling-off period expires.
Price Reduction: Buyers can demand price reduction equal to the cost of rectifying undisclosed issues.
Compensation Claims: Buyers can sue for damages exceeding the deposit, including:
Cost of repairs
Decrease in property value
Additional costs incurred (temporary accommodation, storage, moving)
Legal costs
Criminal Penalties: Deliberate concealment of major defects can result in fines up to $19,826 and potential fraud charges.
When in Doubt, Disclose
The golden rule: If you're unsure whether something is material, disclose it anyway. It's always better to be transparent upfront than face legal consequences after settlement. Buyers appreciate honesty and are more likely to proceed with full knowledge than discover issues later and seek remedies.
Deposit Trust Account Requirements in Victoria
Why Sellers Cannot Hold Deposits in Victoria
Under Victoria's Estate Agents Act 1980 and Australian Consumer Law, sellers are legally prohibited from holding buyer deposits. This protects buyers from deposit misuse and ensures funds are available at settlement.
Who Can Hold Deposits in Victoria?
Deposits must be held in a statutory trust account by:
Licensed Conveyancer: Most common for private sales. Your conveyancer holds the deposit in their trust account as part of their conveyancing service.
Licensed Solicitor: Your solicitor's trust account serves the same purpose as a conveyancer's.
Licensed Estate Agent: If you engage an agent only for deposit handling, they can hold it in their agency trust account (though this is uncommon for FSBO sales).
Approved Deposit Bond Provider: Alternatively, buyers can provide a deposit bond from an approved provider instead of cash. The bond guarantees payment if the buyer defaults.
How Deposit Trust Accounts Work in Victoria
Step 1: Contract Signing Both parties sign the Contract of Sale, which specifies:
Deposit amount
Payment timeframe (usually 24-48 hours)
Trust account holder details
Step 2: Deposit Payment Buyer transfers the deposit to your conveyancer's trust account within the specified timeframe. Your conveyancer provides:
Trust account BSB and account number
Unique reference for the transaction
Receipt confirmation once funds are received
Step 3: Secure Holding The deposit remains in the trust account until settlement or contract termination. Trust accounts:
Are strictly regulated by Legal Services Board Victoria
Must be kept completely separate from business funds
Earn interest (usually for the benefit of the legal profession fund)
Are covered by professional indemnity insurance
Are audited regularly for compliance
Step 4: Release at Settlement On settlement day:
Buyer pays the balance (purchase price minus deposit)
Your conveyancer releases the deposit to you
Combined with the balance, you receive the full purchase price
Ownership transfers to the buyer
What Happens to Deposits If Sale Falls Through?
Buyer Defaults (Fails to Settle):
You may be entitled to keep the deposit as compensation
Requires formal default notice through your conveyancer
If losses exceed deposit, you can claim additional damages
Process typically takes 4-8 weeks to finalize
Seller Defaults (You Fail to Settle):
Deposit must be returned to buyer immediately
You may owe additional compensation for buyer's losses
Serious legal and financial consequences
Potential lawsuit for specific performance or damages
Cooling-Off Period Withdrawal:
Buyer forfeits 0.2% of purchase price (lower than most states)
Remainder of deposit returned within 2 business days
Only applies during 3-business-day cooling-off period
Mutual Agreement to Cancel:
Deposit returned to buyer in full
Both parties sign release documentation
No penalties (unless otherwise agreed)
Contract Subject to Conditions: If sale doesn't proceed due to unfulfilled conditions (finance rejection, unsatisfactory building inspection), deposit handling depends on contract terms:
Finance clause not satisfied: deposit returned to buyer
Building inspection reveals major defects: usually deposit returned if buyer withdraws within timeframe
Always check specific contract conditions
Illegal Deposit Practices in Victoria
❌ Never Do These:
Accept deposit into your personal bank account
Hold cash deposits yourself
Agree to "hold the deposit until settlement"
Accept cryptocurrency or non-standard payment
Let buyers skip the deposit claiming they'll "pay it later"
Consequences:
Fines up to $99,132 for individuals in Victoria
Contract automatically void
Potential criminal charges
Loss of buyer confidence and sale collapse
Legal action from buyers
Cooling-Off Period Rights in Victoria
Victoria provides buyers with a statutory 3-business-day cooling-off period after signing the Contract of Sale. This gives buyers time to conduct final due diligence, arrange finance, and reconsider their purchase decision.
How Long is the Cooling-Off Period in Victoria?
3 business days from the day after contract signing.
Calculation Example:
Contract signed: Monday
Cooling-off period starts: Tuesday
Cooling-off period ends: Thursday 5:00 PM
Business days exclude:
Saturdays and Sundays
Public holidays
Melbourne Cup Day (first Tuesday in November, in metropolitan Melbourne)
Can Buyers Waive Cooling-Off Rights?
Yes, buyers can waive their cooling-off rights by signing a Section 31 waiver. This must be:
On a separate document (not part of the contract)
Signed by the buyer
Witnessed by a practicing Victorian lawyer
Done voluntarily without pressure
Buyers often waive cooling-off rights for:
Auction purchases (no cooling-off applies to auctions)
Competitive situations where sellers want certainty
When buyers have already completed all due diligence
After Cooling-Off Period Expires
Once the 3-business-day cooling-off period passes:
Contract becomes unconditional (subject to any other conditions like finance)
Buyers cannot withdraw without serious financial penalties
Sale proceeds toward settlement date
Both parties are legally bound
How to Find a Qualified Conveyancer or Solicitor in Victoria
Licensed Conveyancers:
Australian Institute of Conveyancers Victoria - Find a member
Check license status with Consumer Affairs Victoria
Read reviews on Google, ProductReview, or local forums
Ask for referrals from friends who've sold privately
Licensed Solicitors:
Law Institute of Victoria - Find a lawyer
Verify practicing certificate with Legal Services Board
Check for any disciplinary history
Look for property law specialists
Questions to Ask:
"Are you licensed to practice in Victoria?"
"What's your experience with FSBO sales?"
"What's your fixed fee for complete conveyancing service?"
"What's included vs. what costs extra?"
"What's your typical response time?"
"Do you handle everything through settlement?"
"Do you have professional indemnity insurance?"
Red Flags: ❌ Unlicensed or unregistered practitioners ❌ Unclear or variable pricing ❌ No fixed-fee quotes ❌ Poor communication or availability ❌ No professional indemnity insurance ❌ Pressure to use affiliated services ❌ Negative reviews about trust account handling
Cost of Selling Property Privately in Victoria
Total Cost Comparison: FSBO vs Real Estate Agent
Example: Selling a $1,000,000 Melbourne Property
With Real Estate Agent:
Agent commission (2.5%): $20,000-$25,000
GST: ~$2550
Marketing package: ~$2,000
REA listing $4000
Conveyancer/solicitor: $1,200
Total Cost: $25,000-$35,00
Selling Privately Through AirLister:
Contract Prep (complete service): $300
Section 32 preparation: Included in conveyancing
Online listing (AirLister): $600
Signboard: $100 (optional)
Marketing materials: ~$200 (optional)
Conveyancer/solicitor: $1,200
Total Cost: $2,00 - $3000
That's enough for:
Complete kitchen renovation
New family car
International holiday
Deposit for investment property
Private school fees for 2-3 years
Timeline: From Contract to Settlement When Selling Privately in Victoria
Week 1-2: Preparation Phase
Engage Conveyancer/Solicitor:
Initial consultation (free or $100-$200)
Discuss property details and any issues
Receive fixed-fee quote
Sign engagement letter
Gather Property Information:
Title documents
Building permits and approvals
Owners corporation details (if applicable)
Pool/spa compliance certificates
Recent rates and utility notices
Conveyancer Prepares Documents:
Orders all required searches and certificates
Compiles Section 32 Vendor's Statement
Prepares Contract of Sale
Reviews all documents for accuracy
Property Presentation:
Arrange professional photography
Complete any minor repairs or improvements
Deep clean property
Stage key rooms
Week 3-4: Marketing Phase
List Property:
Upload to AirLister and other platforms
Install "For Sale" signboard
Distribute flyers in local area
Promote on social media
Provide Documents to Interested Buyers:
Make Section 32 available for download or pickup
Provide Contract of Sale for buyer review
Answer questions about property honestly
Allow buyer solicitors to review documents
Conduct Inspections:
Schedule private inspections
Host open homes (if desired)
Provide feature sheets
Collect buyer feedback
Week 5-6: Negotiation Phase
Receive Offers:
Buyers submit written offers (usually through their solicitor)
Review offer terms (price, deposit, settlement date, conditions)
Consult with your conveyancer about offer quality
Negotiate Terms:
Accept, reject, or counter-offer
Your conveyancer communicates with buyer's legal representative
Negotiate price, settlement date, conditions
Finalize mutually acceptable terms
Exchange Contracts:
Both parties sign Contract of Sale
Signed contracts exchanged between conveyancers
Contract becomes legally binding
Cooling-off period begins (3 business days)
Week 7-8: Cooling-Off and Condition Satisfaction
Buyer Pays Deposit:
Transferred to your conveyancer's trust account within 24-48 hours
Receipt issued to buyer
Your conveyancer confirms receipt to you
Cooling-Off Period:
3 business days from day after contract signing
Buyer may conduct final inspections
Buyer arranges finance (if conditional)
Contract becomes firm after cooling-off expires
Condition Satisfaction:
Building and pest inspections (if contracted conditions)
Finance approval (if subject to finance)
Any other special conditions must be satisfied
Extensions negotiated if needed
Week 9-12: Pre-Settlement
Settlement Preparation:
Your conveyancer prepares settlement statement
Calculates adjustments (rates, water, body corporate levies)
Coordinates settlement date and time with buyer's conveyancer
Arranges discharge of your mortgage (if applicable)
Final Property Preparation:
Complete any agreed repairs
Arrange final utility readings
Pack and prepare to vacate
Clean property thoroughly
Settlement Arrangements:
Confirm final settlement figures
Sign transfer documents
Arrange key handover method
Notify utilities of ownership change
Settlement Day (Typically Week 12)
Morning:
Final walkthrough by buyer (if requested)
Your conveyancer attends settlement
All documents signed and exchanged
Funds transferred
Afternoon:
Your mortgage discharged
Deposit released from trust account
Balance payment received
You receive full settlement amount
Ownership transfers to buyer
Handover:
Keys provided to buyer or their representative
Garage remotes, alarm codes handed over
Final property check completed
You vacate property
Common Mistakes When Selling Without an Agent in Victoria
Mistake 1: Not Engaging Conveyancer Early Enough
The Problem: Many FSBO sellers wait until they have a buyer before engaging a conveyancer. This delays contract preparation and can lose interested buyers.
The Solution: Engage your conveyancer in week 1, before marketing. Your contract and Section 32 must be ready when buyers express interest.
Cost of Mistake: Lost buyers, delayed marketing, rushed document preparation.
Mistake 2: Providing Incomplete or Outdated Section 32
The Problem: Missing certificates, outdated searches, or incomplete disclosure gives buyers extended withdrawal rights.
The Solution: Work closely with your conveyancer to ensure every required document is current and complete before providing to buyers.
Cost of Mistake: Fines up to $19,826, buyers withdrawing after cooling-off, sale collapsing.
Mistake 3: Attempting to Hold Deposit Yourself
The Problem: Some FSBO sellers think they can save money by holding deposits themselves.
The Solution: Always use your conveyancer's or solicitor's trust account. It's a legal requirement, not optional.
Cost of Mistake: Fines up to $99,132, contract invalidity, criminal charges.
Mistake 4: Not Disclosing Known Defects
The Problem: Sellers hide or minimize defects thinking it will help the sale proceed.
The Solution: Full transparency about all known issues. Buyers will discover problems eventually, and non-disclosure has serious consequences.
Cost of Mistake: Contract rescission, compensation claims, legal action, reputational damage.
Mistake 5: Overpricing the Property
The Problem: Without agent guidance, some FSBO sellers set unrealistic prices based on emotion rather than market data.
The Solution: Use AirLister's AI pricing tool, research comparable sales, consider professional appraisal ($300-$600).
Cost of Mistake: Property sits on market for months, eventually sells for less than properly priced properties.
Mistake 6: Poor Quality Photos or Presentation
The Problem: Using smartphone photos and skipping professional presentation to save money.
The Solution: Invest $400-$600 in professional photography and $500-$1,000 in styling. These costs return 5-10x in increased buyer interest and higher offers.
Cost of Mistake: Fewer inquiries, lower offers, extended time on market.
Mistake 7: Being Unavailable for Inspections
The Problem: FSBO sellers with limited availability make it hard for buyers to view property.
The Solution: Be flexible with inspection times, including evenings and weekends. Consider open homes to maximize exposure.
Cost of Mistake: Missing serious buyers who find more accessible properties.
Mistake 8: Not Preparing for Negotiations
The Problem: Accepting first offers without understanding market value or negotiating leverage.
The Solution: Consult your conveyancer about offer quality, understand comparable sales, know your bottom line before negotiations begin.
Cost of Mistake: Leaving $10,000-$50,000 on the table by accepting weak initial offers.
Mistake 9: Ignoring Buyer Finance Conditions
The Problem: Not understanding that most buyers need finance and allowing unrealistic settlement timeframes.
The Solution: Accept that 80% of buyers need loans. Standard 30-60 day settlement allows proper finance approval.
Cost of Mistake: Sale falling through due to rushed finance applications.
Mistake 10: Handling Everything Yourself Without Professional Help
The Problem: Trying to save every dollar by DIY-ing legal work or skipping inspections.
The Solution: Engage qualified professionals for legal, financial, and technical aspects. You handle marketing and showings; let experts handle their specialties.
Cost of Mistake: Legal problems, contract failures, regulatory penalties far exceeding professional fees.
Resources for Victorian FSBO Sellers
Government Resources:
Consumer Affairs Victoria - Property regulations and licensing
Land Use Victoria - Title information and land registry
Victorian Planning Authority - Planning and zoning information
Professional Bodies:
Australian Institute of Conveyancers Victoria - Find licensed conveyancers
Law Institute of Victoria - Find property solicitors
Real Estate Institute of Victoria - Market data and resources
Useful Tools:
AirLister AI Pricing Tool - Free property valuation
Domain.com.au - Recent sales data
Realestate.com.au - Comparable properties
CoreLogic - Comprehensive market analytics
The AirLister Advantage
By selling privately through AirLister in Victoria, you: ✅ Save $15,000-$25,000 in agent commission ✅ Control your timeline and marketing strategy ✅ Access 100% of potential buyers (not just cash buyers like auctions) ✅ Maintain full legal compliance with professional support ✅ Keep more money in your pocket for your next chapter
Still Have Questions? Explore our complete guides on property presentation, pricing strategies, and negotiation techniques. Or start by getting a free AI-powered valuation of your Victorian property today.
Important Disclaimer: This information is general guidance for selling property privately in Victoria and should not be considered legal advice. Victorian property laws are complex and subject to change. Always consult with a licensed Victorian conveyancer or solicitor for advice specific to your property transaction and circumstances.
Last Updated: January 2026
See how to sell your property without an agent - Here
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Last updated: January 2026
