Selling Property in Victoria? Know This Before You Call a Real Estate Agent

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When the time comes to sell a property in Victoria, most people instinctively reach for the phone to call a local estate agent. However, before you do that, there are several important obligations and strategic steps you must take to ensure your sale is well-prepared, and ultimately successful. This guide explains everything you need to know before you even think about listing your home.

 

1. You Must Prepare a Section 32 Statement Before You Advertise

Under Section 32 of the Sale of Land Act 1962 (Vic), you are required by law to provide a Vendor Statement (commonly referred to as a "Section 32") to any prospective purchaser before a contract of sale is signed.

This document must be prepared or reviewed by a licensed conveyancer or solicitor. It discloses crucial facts about the property, including:

  • Title search and ownership details

  • Mortgages, covenants, easements, and caveats

  • Council rates and other outgoings

  • Zoning and planning restrictions

  • Services connected to the land

  • Building works, permits, and notices

It is illegal to sell or advertise a property for sale without a valid and complete Section 32 available upon request. A defective Section 32 can result in the contract being cancelled, even after the auction or sale.

 

2. Decide on a Method of Sale (Private Sale or Auction)

Victorian vendors typically sell through either:

  • Private Sale: Negotiations occur between the buyer and agent. A 3-business-day cooling-off period applies for the buyer unless they waive it.

  • Auction: There is no cooling-off period. The highest bidder signs an unconditional contract on the spot.

Your decision will influence the contract structure, marketing strategy, and negotiation timeline. You should also understand that the rules surrounding auction conduct, particularly in metropolitan Melbourne, are governed by the Estate Agents (Professional Conduct) Regulations 2018.

 

3. Engage a Licensed Conveyancer to Represent Your Interests Early

A licensed conveyancer does far more than just “process” paperwork. We manage:

  • The compliance of your sale under the Sale of Land Act and Transfer of Land Act

  • Reviewing offers and negotiating special conditions

  • Preparing discharge instructions for any mortgage

  • Liaising with government bodies and your bank

  • Managing GST, capital gains, and land tax considerations

  • Preparing the Statement of Adjustments

  • Finalising the PEXA transaction

Engaging a conveyancer before you speak with an agent ensures your transaction is legally ready, reducing the chance of delays later.

 

4. Clarify Inclusions and Exclusions in Writing

It is common for misunderstandings to arise around what is and isn’t included in the sale (e.g., dishwashers, chandeliers, curtains, garden statues).

Before you speak to an agent:

  • Create a written list of what will be included or excluded from the sale

  • Provide this list to your conveyancer and your agent

  • Ensure the contract reflects this in the “goods sold with the land” section

Statements such as “all fixtures and fittings as inspected” are vague and may expose you to post-sale disputes.

 

5. Understand the Financial Timeline

Speak to your accountant or financial adviser about:

  • Capital Gains Tax (CGT): If the property is not your principal place of residence, CGT may apply.

  • Mortgage discharge fees: Your bank may charge you to release the title.

  • Land Tax Clearance Certificate: This must be obtained prior to settlement.

  • Outstanding rates and owners corporation fees: These will be apportioned on settlement.

You should also be aware of bridging finance risks if buying another property before this one is sold.

 

6. Prepare the Property Physically and Legally

There’s a growing trend toward buyer due diligence, particularly when building works have been done. You must ensure:

  • All building works were approved and permits are available (especially for decks, pergolas, extensions)

  • If you are an owner-builder who carried out works in the past 6 years 6 months, you are required to provide:

    • A Defects Inspection Report

    • Domestic Building Insurance (formerly Builder’s Warranty Insurance)

Properties that fail to disclose these are often withdrawn from sale or sold at a discount when compliance is found lacking.

 

7. Research the Market and Appoint an Agent Strategically

Although you may feel ready to contact an agent, it pays to understand:

  • What similar properties have sold for

  • How long properties are taking to sell in your area

  • Whether your agent charges marketing fees upfront

  • The difference between exclusive authority and open authority

Once appointed, your agent must provide a signed Authority to Sell under the Estate Agents Act 1980 (Vic). There is no cooling-off period for this authority, and you should check:

  • Commission structure (flat fee or percentage)

  • Termination rights and notice periods

  • Responsibility for advertising costs if the property does not sell

 

8. Avoid Common Pitfalls

Some mistakes are easily avoided if you get advice early:

  • Advertising a property before the Section 32 is finalised

  • Assuming a caveat on title will be withdrawn without checking

  • Failing to disclose a material defect

  • Not obtaining discharge instructions from your bank early

  • Agreeing to an unreasonable special condition without advice

 

Final Word: Your First Call Should Be to Your Conveyancer

As licensed conveyancers acting exclusively for vendors, we ensure your rights are protected from the very beginning—before the property hits the market.

We invite you to contact our office for a no-obligation discussion about your intended sale.

 

Kind regards,

 
David Dawn
Licensed Conveyancer
Victorian Property Settlements
PO Box 11220
Frankston VIC 3199
Email: david@quick32.com
Phone: (03) 9783 0111