Selling Real Estate in Victoria, Australia
When buying a home to live in, it often feels like it will be your forever home. However, various life circumstances may lead you to sell your property. In my case, I recently sold our previous home and purchased a new one closer to my child’s school. There may also come a time when downsizing becomes necessary later in life.
Today, I will explain the process of selling real estate—including homes, investment properties, commercial buildings, and vacant land—in Victoria, Australia, with a focus on legally transferring the title and receiving the sale proceeds.
Engaging a Real Estate Agent (Selling Agent)
In reality, it is difficult to sell property in Victoria without engaging a real estate agent. While transactions between family members may not require one, showing your home to strangers and obtaining the best possible price will almost certainly require professional assistance. Agents earn their commission from the seller upon successful completion of a sale.
Open Inspection
When the agent advertises the property and conducts open inspections, sellers should hide personal or valuable items and ensure they are secure. The agent should record the identities and contact information of all visitors. This information helps build a database of potential buyers. From my experience, many final buyers are people who visited multiple times during inspections.
Sale Methods: Auction vs Private Sale
There are two main methods of selling property:
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Auction: Price is determined through competitive bidding. The contract is unconditional—buyers cannot include finance or building inspection conditions. Cooling-off rights do not apply. Additional auction-related fees may apply.
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Private Sale: Buyer and seller negotiate the price and conditions. The contract can be conditional on finance, inspection reports, etc. A 3-day cooling-off period applies for residential and small rural properties.
Consult your trusted agent for advice on which method suits your needs and market conditions.
Legal Documents Required: Contract & Section 32
Once a method is chosen, the seller should instruct a trusted solicitor to prepare the legal documents:
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Contract of Sale of Real Estate
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Section 32 – Vendor’s Disclosure Statement
Both must be drafted by a lawyer using forms approved by the Law Institute of Victoria.
What Is Section 32?
Under the Sale of Land Act 1962, the Section 32 is a disclosure document prepared by the seller’s solicitor and must be provided to the buyer before signing the contract. It includes:
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Certificate of title
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Existing mortgage or loan details
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Easements
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Council rates
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Water rates
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Owners corporation certificate
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Bushfire-prone area disclosure
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Building permits for recent renovations or extensions
Incomplete or inaccurate information can lead to the buyer withdrawing or pursuing legal action. Always have your solicitor prepare this document accurately.
Contract of Sale
The contract should include:
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Seller’s and buyer’s details
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Legal property description
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Sale price, deposit, and settlement date
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Any special conditions (e.g. GST inclusions or exclusions)
Let your solicitor include any important terms related to your situation.
Deposit and Trust Account
The buyer usually pays a 10% deposit into the agent’s trust account, which is monitored annually, similar to a solicitor’s trust account. It’s safe and secure.
Early Release of Deposit
Victoria is the only state in Australia that allows the seller to access the deposit before settlement. Conditions:
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The contract must be unconditional
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The seller must provide mortgage details showing debts below 80% of the sale price
Settlement
On settlement day, the buyer pays the balance, and the title is legally transferred via PEXA by the lawyers. The agent later transfers the deposit (minus commission) to the seller. The sale concludes once the keys are handed over.
Final Words
As seen above, the lawyer plays a vital role throughout—from preparing documents to receiving funds and transferring title. Selling property is as important as buying it. Solomon Legal has provided safe and professional property services in Victoria for over 14 years. Entrust us with your property sale—we promise to serve with integrity.
Disclaimer: This article is for general guidance only and should not be relied upon as legal advice. Specific circumstances vary greatly.
