Selling property in Victoria: the vendor's step-by-step guide.

Selling a property in Victoria is a project managed by paperwork. The parts that go well are the ones prepared early — the vendor's statement, the discharge of mortgage, the withholding clearance, the final adjustments. This guide is a step-by-step Victorian vendor's playbook, from the decision to sell through to keys and post-settlement records.

Deciding to sell

Before the property goes to market, the vendor should confirm timing, method of sale, price expectations and the moving plan. If purchasing another property, the two settlements need to be coordinated — a simultaneous settlement is common but requires careful contract drafting to avoid a gap or a shortfall.

Check title and ownership

The vendor's conveyancer or lawyer will obtain a current title search to confirm registered proprietors, mortgages, caveats and any encumbrances. Where the registered proprietor's details are out of date — a change of name, a deceased co-owner, an old trust structure — those must be corrected before signing.

Deceased estates, trusts, companies and attorneys

Selling from a deceased estate typically requires a transmission application to move title into the executor's or administrator's name, or the beneficiary's name, before the sale can complete. Trust and company sellers must produce evidence of authority to sell (trust deed, resolution, ASIC extract). Sales under a power of attorney require the attorney to have authority to sell and the correct signing conventions.

Appointing an estate agent

Most Victorian sales use a licensed estate agent, appointed under a written authority. Authorities may be sole and exclusive (the agent has the exclusive right to sell for a set period), general (multiple agents), or auction authorities (specific to an auction campaign). The vendor should read the authority carefully — commission, advertising expenses, method of sale, term and rebate disclosure are all set out in it.

Selling without an agent

Selling without an agent is lawful but rare. The vendor still needs a valid Section 32 statement and contract, still needs to handle marketing and inquiries, and still must comply with underquoting and disclosure rules if advertising the price.

The authority to sell

The authority sets out commission, advertising expenditure, term, and whether marketing costs are payable regardless of sale. Under the Estate Agents Act and regulations, agents must give a rebate statement disclosing any rebates or commissions received from third parties (photographers, styling, marketing platforms).

Preparing the Section 32 statement

The Section 32 (vendor's statement) is prepared by the vendor's conveyancer or lawyer and must be given to the buyer before the buyer signs the contract. It must disclose title, planning, outgoings, notices, building permits in the last seven years, owners corporation certificates (for apartments), and other prescribed matters.

Preparing the contract

The contract of sale is prepared alongside the Section 32. Standard general conditions are used in most residential sales; special conditions cover the deal-specific matters — deposit release under section 27, land tax adjustment, GST for vacant land or new residential premises, sunset dates for off-the-plan, and any nominated chattels and inclusions.

Title searches, OC certificates and permits

The vendor's file should include: current title search, plan of subdivision, planning property report, council rates certificate, water rates certificate, land tax certificate, owners corporation certificate and prescribed documents (for apartments), building permits from the last seven years, and — if owner-builder — the required insurance and reports for work in the last six years and six months.

Disclosure of material facts

Beyond the Section 32, section 12(d) of the Sale of Land Act 1962 (Vic) prohibits a vendor or agent from knowingly concealing certain material facts about the property. The Sale of Land Regulations set out categories of material facts that must be disclosed — the current guidance from Consumer Affairs Victoria should be checked before the campaign begins.

Fixtures, chattels, tenancies

The contract must list included chattels (dishwasher, blinds, air-conditioners) and exclusions. Existing tenancies must be disclosed with a copy of the lease if the property is sold subject to a lease; if sold with vacant possession, tenants must be given the correct notice to vacate under the Residential Tenancies Act 1997 (Vic).

Choosing auction or private sale

Auctions are unconditional and offer no cooling-off. Private sales offer a three clear business day cooling-off period. Auctions concentrate marketing into a defined campaign and produce a binding sale on the day; private sales run open until an offer is accepted. The right method depends on market conditions and vendor preferences.

Pricing and underquoting rules

Estate agents must comply with the underquoting provisions of the Estate Agents Act. An advertised price must not be less than the vendor's asking price, the agent's estimate of the likely selling price, or a written offer that has been rejected. A statement of information setting out three comparable sales must be prepared and displayed for residential sales.

Marketing

Marketing spend is set out in the agent's authority and typically covers online listings, board, brochures, photography, floor plans and — if auction — signage and campaign advertising. Marketing costs are usually payable by the vendor regardless of whether the property sells.

Offers and conditional contracts

Private-sale offers can be conditional on finance, building and pest inspection, or sale of a purchaser's own property. Each condition should have a clear deadline and consequence. Conditional contracts should be reviewed by the vendor's conveyancer before signing — a poorly drafted condition can leave the buyer able to walk without loss.

Auction contracts

Auction contracts are unconditional. The vendor's Section 32 and contract must be available for inspection before the auction, and both parties sign on the fall of the hammer.

Cooling-off

Cooling-off applies to private sales — three clear business days from signing. It does not apply to auction sales or sales made within three clear business days before or after a publicly advertised auction. If the buyer cools off, they forfeit 0.2 per cent of the price or $100, whichever is greater.

Signing and exchange

Contracts are usually signed electronically. The vendor should sign the Section 32 before providing it to the buyer, and the contract only after the buyer has signed and paid the initial deposit.

Deposit — receiving, holding and release

The deposit is usually 10 per cent, held by the agent in their trust account. It cannot be released to the vendor before settlement unless the buyer has agreed in writing following a section 27 statement (or in defined statutory circumstances).

Section 27 — early deposit release

A section 27 statement lets the vendor request early release of the deposit. The vendor's conveyancer prepares the statement, disclosing any mortgages and confirming the sale is not subject to any condition benefiting the buyer. Once served, the buyer has 28 days to object. Failing to object is deemed consent.

Satisfying contract conditions

For conditional contracts, the vendor's conveyancer monitors dates for finance approval, building and pest inspection satisfaction, and sale of the buyer's property. Extensions require written agreement; unmet conditions may allow termination.

Mortgage discharge

Discharge of the outgoing mortgage is the single most common cause of settlement delay. The vendor should sign and return the lender's discharge authority the day the contract becomes unconditional. Banks quote three to four weeks; busy periods stretch that further.

Foreign-resident capital gains withholding

Under the ATO's foreign-resident capital gains withholding regime, buyers of Australian real property from foreign-resident sellers must withhold a percentage of the price and remit it to the ATO. From 1 January 2025 the withholding applies to all real property sales (there is no minimum threshold), the rate is 15 per cent, and Australian-resident vendors must produce a clearance certificate from the ATO to avoid withholding. Vendors should apply for the clearance certificate as soon as the property is listed — processing times can be several weeks.

GST withholding for new residential premises and vacant residential land

For sales of new residential premises or potential residential land where GST applies, the buyer is required to withhold a portion of the price at settlement and remit it directly to the ATO under the GST withholding regime. Vendors must give the buyer a written notice under section 14-255 of Schedule 1 to the Taxation Administration Act 1953 indicating whether withholding is required. The current ATO guidance sets out the precise mechanics.

Pre-settlement access and final inspection

The buyer is entitled to inspect the property in the seven days before settlement. The standard is that the property be in substantially the same condition as at the day of sale, fair wear and tear excepted, with all included chattels present and all excluded items removed. Vendors should complete the move-out well before final inspection.

Adjustments

Settlement figures adjust rates, land tax, water usage and owners corporation fees to the day. Land tax adjustment in particular is a common source of dispute; the contract's special conditions determine whether adjustment is on a single-holding or joint-holding basis. Provide the most recent notices to your conveyancer early.

Settlement

Settlement is electronic in Victoria, through PEXA. The workspace is prepared in the days before, all parties sign digitally, and funds move at the booked time. The vendor's mortgage is discharged and the balance paid to the vendor's nominated account.

Agent commission

The estate agent's commission is paid at settlement out of the sale proceeds. The agent's authority sets out the commission rate and whether marketing costs are payable in addition.

Sale proceeds

After discharge of mortgage, commission, adjustments and any withholding, the net proceeds are transferred to the vendor's nominated account within the PEXA workspace.

Keys and possession

Once settlement is confirmed, the vendor's conveyancer authorises release of keys, usually held by the selling agent. Full sets of keys, garage remotes, alarm codes and manuals should be left at the office.

Post-settlement records

Vendors should retain the signed contract, Section 32, settlement statement, mortgage discharge, ATO clearance certificate and CGT records for at least five years for tax purposes.

Common causes of delay

• Late lodgement of mortgage discharge authority.
• Missing or stale council, water or land tax certificates.
• Unresolved owners corporation special levies.
• ATO clearance certificate not applied for early enough.
• Chattels not removed by final inspection.
• Purchaser finance not unconditional in time.

Seller's timeline and checklist

Before listing:

• Confirm title and ownership.
• Engage conveyancer or lawyer to prepare Section 32 and contract.
• Sign agent's authority and rebate statement.
• Apply for ATO capital gains clearance certificate.

During campaign:

• Statement of information for residential sales.
• Monitor underquoting compliance in advertising.
• Prepare for open inspections; ensure Section 32 available to buyers.

After sale:

• Sign and return mortgage discharge authority.
• Consider section 27 statement if early deposit release desired.
• Provide most recent rates, water and land tax notices.
• Arrange final utility meter readings for settlement date.
• Book removalist and complete move-out before final inspection.
• Confirm keys and remotes with selling agent.

How we can assist

Our conveyancers and property lawyers prepare and settle Victorian sales — from the vendor's statement through to the release of proceeds. Where the sale involves a business, an off-the-plan development, an SMSF, a deceased estate or foreign-resident capital gains withholding, we coordinate the specialist input required.

This article is current as at 16 July 2026 and is general information about selling property in Victoria. Withholding rates, thresholds and disclosure obligations can change. Vendors should obtain specific legal, tax and conveyancing advice for their sale.