01 October 2026 - Written by Lawrence Liang
Major Changes to Property Sales Law in Victoria: What Buyers and Sellers Need to Know
Victoria's property market operates under a new set of rules as of October 2026. The Consumer Legislation Amendment Act 2026 (Vic), which received Royal Assent on 8 September 2026, introduces some of the most significant changes to property sale disclosure requirements in Victoria.
Whether you are a buyer attending auctions this spring in Melbourne, or a vendor preparing to list your property, understanding what has changed and when it applies to your transaction could save you from costly surprises.
The changes arrive in stages. Here is a plain-language guide to these changes.
What Is Changing?
Key aspects of the legislation affecting property law and conveyancing include:
Part 5 of the Act amends the Estate Agents Act 1980 in relation to Property Price Statements and reserve price disclosure, introducing new reserve price, Property Price Statement and advertising requirements for residential property.
Part 9 of the Act amends the Sale of Land Act 1962 in relation to Section 32 statements and the early release of deposit money.
The changes arrive in two stages:
From 1 October 2026 (residential property):
Vendor reserve prices must be confirmed in writing and published at least seven days before any auction or fixed-date sale
In practice, the new reserve price disclosure requirements effectively apply to auctions and fixed-date sales scheduled from 16 October 2026 onward.
The final reserve must be expressed as a single dollar amount, without words or symbols such as "from", "over", "+" or "starting at", and published for at least seven days immediately before the auction or fixed-date sale. If the reserve has not been published for the required period, the auction or fixed-date sale cannot go ahead.
These requirements do not apply to private sales with no fixed date, commercial property sales or sales managed directly by the property owner without engaging a real estate agent.
The Statement of Information is replaced by the new Property Price Statement, with expanded disclosure requirements
For auctions or fixed-date sales on or after 16 October 2026, the Statement of Information will be replaced by the Property Price Statement, along with new advertising requirements. Physical advertisements for a residential property must include an internet address or QR code linking to the Property Price Statement. Online advertisements must prominently display the Property Price Statement and relevant pricing information.
The Property Price Statement also has expanded content requirements. Unlike the Statement of Information, it must include key features of both the subject property and each comparable sale used, including the number of bedrooms, bathrooms and car spaces, as well as land and floor area, rather than simply listing comparable addresses and prices.
Sold prices must be published within seven days of a sale becoming unconditional and remain publicly available for at least 18 months
Once a residential sale becomes unconditional, the agent will generally be required to update the Property Price Statement with the actual sale price within seven days. The updated statement must then remain available online, free of charge, for at least 18 months after the unconditional sale date.
This requirement applies to both auction sales and private sales for any residential sale that becomes unconditional from 1 October 2026 onward.
Coming later (by 1 June 2027 or earlier by proclamation):
Section 32 Vendor Statements must be made available at least 14 days before an auction, fixed-date sale or the signing of a contract
For a publicly advertised auction or fixed-date sale, the Section 32 must be available at least 14 days before the sale date. For all other sales, it must be available at least 14 days before the contract is signed.
The vendor must also notify the purchaser in writing of any changes to the Section 32 statement before the purchaser signs the contract.
If a vendor fails to comply with these requirements, the purchaser will have the right to terminate the contract.
Coming later (by 1 July 2027 or earlier by proclamation):
The Section 27 early deposit release process will be repealed and replaced with a new contractual arrangement
Under the new rules, a deposit held by a legal practitioner, conveyancer or estate agent as stakeholder cannot be released to the vendor before settlement unless the contract contains an agreed condition permitting early release.
Even where early release is permitted, an estate agent cannot deduct commission, auction expenses or other amounts from the deposit before settlement or rescission.
In practical terms, early deposit release will no longer follow the existing statutory Section 27 process. Instead, whether and how a deposit can be released early will depend on what is agreed between the vendor and purchaser in the contract itself.
Unlike the October 2026 reforms, which are limited to residential property, the Sale of Land Act amendments refer to the sale of "land" broadly and can therefore also apply to commercial property transactions.
Frequently Asked Questions - Reserve Price and Auction
Q: Do the new reserve price rules apply to properties already listed for sale before 1 October 2026?
A transitional exemption applies to residential auctions and fixed-date sales held within 14 days after 1 October 2026. In practice, this means the new reserve price disclosure requirements effectively apply to auctions and fixed-date sales scheduled from 16 October 2026 onward. If your property was already on the market and your auction was scheduled for the first two weeks of October, the transitional exemption may cover your campaign. If your auction is from 16 October 2026 onward, the new rules apply regardless of when the property was first listed.
Q: Can a vendor change their reserve price before the auction or fixed-date sale?
Yes, but changing the reserve restarts the seven-day clock.
This is a significant departure from previous practice, where vendors could adjust their reserve on the date of auction in response to buyer feedback or changed market conditions. Under the new rules, a vendor who changes their reserve price after it has been published must republish the new figure and allow another full seven days before the sale can proceed. A contravention of this requirement carries a penalty of 240 penalty units.
Q: How do these rules affect pre-auction offers?
The new rules apply to auctions and fixed-date sales specifically. Pre-auction offers are made privately between the buyer and vendor outside the auction process and are not directly governed by the reserve price disclosure requirement.
A vendor who accepts a pre-auction offer and cancels the auction before the seven-day period is complete is not in breach of the reserve price rules, as the pre-auction offer is treated as a private sale.
Frequently Asked Questions - Property Price Statements and Sold Prices
Q: Does a vendor need to update the Statement of Information to a Property Price Statement if the property was listed before 1 October 2026?
The new Property Price Statement and its requirements apply to auctions and fixed-date sales held on and after 16 October 2026. Your selling agent will need to update existing listings if the property is going to auction from 16 October, even though the property was listed before 1 October.
Q: When must the sold price be published?
Once a residential sale becomes unconditional, the agent will generally be required to update the Property Price Statement with the actual sale price within seven days. The updated statement must then remain available online, free of charge, for at least 18 months after the unconditional sale date.
The sold price reporting requirement commenced on 1 October 2026. This means that for any residential sale that becomes unconditional from that date onward, the sold price must be published and remain publicly accessible on the Property Price Statement for at least 18 months. This applies to both auction sales and private sales.
The only exemption available is in cases involving family violence or personal safety concerns, which must be approved by the Director of Consumer Affairs Victoria.
Q: I do not intend to go to auction. Will any of these changes affect me?
Yes. While the reserve price disclosure requirements apply specifically to auctions and fixed-date sales, two other changes apply broadly to all residential property sales.
The sold price publication requirement applies to all unconditional residential sales from 1 October 2026, regardless of whether the property sold at auction or by private sale. Your agent will be required to publish the sale price within seven days of the contract becoming unconditional.
Frequently Asked Questions - Section 32 Changes
Q: When must a Section 32 vendor statement be available under the new rules?
For a publicly advertised auction or fixed-date sale, the Section 32 must be available at least 14 days before the auction or fixed-date sale. For all other sales, it must be available at least 14 days before the contract is signed. The vendor must also notify the purchaser in writing of any changes to the Section 32 statement before the purchaser signs the contract.
Under the current rules, the Section 32 simply needs to be provided to the buyer before they sign the contract, with no minimum lead time required. The new 14-day requirement is a meaningful change for both vendors and buyers.
Q: Does the 14-day Section 32 requirement apply only to auctions?
No. The 14-day requirement applies to both auctions and private sales.
Unlike the October auction reforms, these provisions are framed by reference to land generally and are therefore applicable to both residential and commercial property.
So technically, if a vendor plans to sell a property in Victoria, it is strongly recommended to start engaging a conveyancer to prepare the Section 32 as early in the process as possible.
These changes are expected to commence by 1 June 2027 or earlier by proclamation.
Q: What are the consequences if a vendor does not comply?
If a vendor fails to make the Section 32 available for the required 14-day period before the auction, fixed-date sale or contract signing, the purchaser will have the right to terminate the contract. This is a stronger protection for buyers than the current rule, which only allows a purchaser to rescind where no Section 32 was provided at all before signing.
In plain terms: under the new rules, providing a Section 32 too late is treated the same as not providing one at all.
Pro Tip for vendors: These upcoming changes are a strong reason to engage your conveyancer as early as possible when you decide to sell. Preparing a compliant Section 32 can take up to two weeks or more in some cases, once the required property certificates are ordered and reviewed. Adding a mandatory 14-day lead time before any contract is signed means that leaving your Section 32 preparation until the last minute will carry more risk than it does today.
Frequently Asked Questions - Deposit Release
Q: Is Section 27 being abolished in Victoria?
Yes. The existing Section 27 early deposit release procedure will be repealed and replaced by Section 26A.
Section 27 of the Sale of Land Act 1962 (Vic) currently provides a statutory mechanism that allows vendors to apply to have the deposit released to them before settlement, subject to specific conditions. Once this section is repealed, that statutory process will no longer be available. The deposit must not be released to the vendor or at their direction before settlement unless the contract includes a condition that provides for it.
These changes will commence by 1 July 2027 or earlier by proclamation.
Q: Can a Victorian property deposit still be released before settlement?
Yes, but only if the contract specifically provides for it.
In practical terms, this means early deposit release will shift from a statutory right that vendors could exercise independently to a matter that must be negotiated and agreed between vendor and purchaser at the time of contract. If early access to deposit funds is important to you as a vendor, this needs to be addressed in the contract at the time of signing, not after.
The restriction on agents deducting commission or other fees from a released deposit before settlement is a separate protection for purchasers.
What These Changes Mean for Buyers
Greater pricing transparency before you commit to due diligence costs
One of the most common frustrations for buyers at Melbourne auctions has been spending money on building inspections, pest reports and contract reviews, only to discover on auction day that the vendor's reserve was never within their budget. With the reserve price published as a single dollar figure at least seven days before auction, buyers can now assess whether a property is genuinely worth pursuing before spending anything on due diligence.
More accurate comparable sale data
The Property Price Statement's expanded disclosure requirements, including floor area, land size and key features of each comparable property rather than just addresses and prices, give buyers better information to assess whether the comparable sales used in the statement are truly relevant to the property they are considering.
Knowing what others paid
The requirement to publish sold prices within seven days of a sale becoming unconditional, with that information remaining publicly available for at least 18 months, means buyers will have access to a more complete and current picture of what properties are actually selling for in their target suburbs across Melbourne and regional Victoria.
More time to review the Section 32
Once the Section 32 timing changes take effect, buyers will have a guaranteed 14-day window to have their conveyancer review the vendor statement before signing any contract. This is particularly important for buyers purchasing apartments or units that are affected by owner’s corporation, or properties where the title is affected by easements, covenants or complex planning requirements.
Pro Tip for buyers: With the reserve price now published in advance, you can plan your budget and due diligence spending more strategically. Keep in mind, however, that the published reserve is the vendor's minimum acceptable price, not a forecast of where bidding will finish. In competitive Melbourne suburbs, the final price may exceed the reserve, sometimes by a significant margin. Use the published reserve as a starting point for your planning, not as a ceiling.
What These Changes Mean for Vendors
More planning required before your auction / fixed date sales campaign launches
The requirement to publish a reserve price at least seven days before an auction means vendors can no longer leave their pricing decision until the final days of a campaign or the morning of auction day. The reserve must be agreed with your agent in writing, expressed as a single dollar amount, and published with enough lead time to meet the seven-day requirement before your scheduled auction / fixed sale date. If you change your mind after publishing, the seven-day clock resets and your auction date may need to move.
Your reserve price is no longer confidential
This is the most significant practical change for Victorian vendors selling by auction. Previously, the reserve was known only to you and your agent, giving you flexibility to adjust your expectations right up until auction day. From 16 October 2026, your reserve is publicly visible to all buyers for at least seven days before your auction. This changes the negotiating dynamic considerably and is worth discussing carefully with your agent when setting your campaign strategy and pricing approach.
Early release of deposit will require a specific contract condition
Although this change is not yet in effect, vendors who want access to the deposit before settlement will need to plan ahead. Once the Section 27 repeal takes effect, the statutory process that currently allows vendors to apply for early deposit release will no longer be available. Instead, any early release will need to be specifically agreed between vendor and purchaser and written into the contract at the time of signing. This is not something that can be added after contracts have been exchanged. Raise it with your conveyancer before contracts are prepared so the appropriate condition can be included if early access to the deposit is important to you.
The 14-day Section 32 requirement means starting earlier
The upcoming change requiring the Section 32 to be available at least 14 days before your auction date or before a buyer signs the contract means vendors will need to engage their conveyancer much earlier than has typically been standard practice. Preparing a compliant Section 32 requires ordering and reviewing certificates from multiple authorities, including your local council, water authority and in some cases the owners’ corporation. This process can take up to two weeks or more in more complex scenarios. For vendors who plan to sell their property in Victoria, starting the Section 32 preparation earlier is the practical response to this requirement.
Related articles
This article is for general information purposes only and does not constitute legal advice. The Consumer Legislation Amendment Act 2026 (Vic) is now law, but certain provisions are still subject to proclamation and transitional arrangements. Information is current as at October 2026. Please consult a qualified Victorian conveyancer or property solicitor for advice on how these changes apply to your specific transaction.