Significant changes are pending in Victorian conveyancing law and practice.
The omnibus Consumer Legislation Amendment Bill 2026 passed both houses of parliament on 26 August 2026.
Key aspects of the legislation affecting property law and conveyancing practice include:
- Part 9 of the Bill amends the Sale of Land Act 1962 in relation to section 32 statements and deposit money.
- Part 5 amends the Estate Agents Act 1980 in relation to property price statements and reserve prices.
- Part 3 amends the Conveyancers Act 2006 in relation to the suspension of licences.
Commencement
Commencement is as follows:
- amendments to the section 32 statement regime commence by proclamation, and no later than 1 June 2027;
- amendments dealing with the release of deposit money commence by proclamation, and no later than 1 July 2027;
- amendments to the Conveyancers Act 2006 and the licence suspension provisions of the Estate Agents Act 1980 commence on the day after assent; and
- general amendments to the Estate Agents Act 1980, including property price statements and reserve prices, commence on 1 October 2026.
Section 32 statement to be made available earlier
Section 32(1) currently requires a vendor to give a section 32 statement to a purchaser before the purchaser signs the contract. The Bill substitutes an obligation to make the statement available from the 'sale availability time'.
Make available is defined as making the statement available in electronic or hard copy format on the request of any prospective purchaser of land. The section 32 statement moves from a document given to the eventual purchaser to a document available to the market on request.
Sale availability time, as amended in the Legislative Council, means:
- for land publicly advertised for sale by auction or a fixed-date sale, the day that is 14 days before the first auction date or first fixed date;
- for land publicly advertised for sale in any other way, the day that is 14 days after the land is first publicly advertised for sale; and
- for land that is not publicly advertised, land to be sold within 14 days after it is first publicly advertised, or land to be sold on a day more than 14 days before a first auction date or first fixed date, before the purchaser signs the contract.
Fixed-date sale means a method of sale by which the vendor sets any date and time by which a prospective purchaser must make an offer to the estate agent or agent's representative.
A vendor is currently required to actively provide the s 32 statement to the purchaser. The amendments place the burden on the prospective purchaser, and their representative, to obtain the statement and read it. Where a statement is made available by link or online, it will need to be downloaded and reviewed before the contract is signed.
Written notice of changes to a section 32 statement
A vendor is required to give written notice to a purchaser of any changes to the statement made available under s 32(1) before the purchaser signs the contract. More updating may be required. Making the statement available at the start of a campaign rather than at the point of contract widens the period in which the disclosed position can change, for example, through a rates notice, an owners corporation certificate, or a planning certificate issued in the interim.
Rescission and offence provisions
Section 32K(3) currently allows a purchaser to rescind where the vendor fails to give a section 32 statement before the purchaser signs the contract. The ground for rescission now becomes a failure to make a section 32 statement available from the sale availability time. The offence in s 32L(c) is amended in the same terms.
Transitional period
Sections 30, 32, 32K and 32L as amended do not apply to a contract for the sale of land entered into within 28 days after the commencement day. The version of those sections in force immediately before commencement continue to apply.
Deposit not to be released unless provided by contract
Section 27 of the Sale of Land Act 1962, which sets out the statutory procedure for the early release of deposit money, is being repealed and replaced with s 26A. This new section provides that where a legal practitioner, conveyancer, or estate agent holds deposit money as a stakeholder under s 24, 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.
Settlement is defined for this purpose as, in the case of a cash transaction, the time at which the purchaser becomes entitled to a transfer or conveyance of the land and, in the case of a terms contract, the time at which the purchaser becomes entitled to possession or to the receipt of rents and profits.
Section 25(1) is amended so that deposit money received by a vendor must be paid to a legal practitioner, conveyancer, or estate agent acting for the vendor, or into a special purpose account, unless released under s 26A.
Early release becomes a matter of contractual agreement rather than statutory entitlement. Release before settlement will depend on an express condition in the contract, and there is no equivalent of the current s 27 procedure to fall back on.
Estate agent not to retain amounts from the deposit
New s 26B provides that where an estate agent is authorised to pay deposit money to the vendor, or as the vendor directs, in accordance with s 26A, the agent must not retain out of the deposit money an amount for their commission, or for any auction expense or other amount to which the agent is or will become entitled, before settlement or rescission of the contract.
Property price statements and reserve prices
The statement of information under s 47AF of the Estate Agents Act 1980 is renamed the property price statement, and expanded to include the key features of the residential property with the vendor's reserve price expressed as a single dollar amount, not modified by words or symbols. Key features include the floor space and the total size of the land in square metres.
An estate agent or agent's representative is required to request the reserve price from the vendor in writing before the date of an auction or fixed-date sale, stating the proposed reserve price and the reasons for it. The vendor responds in writing by confirming that price, specifying another price, or requesting a further proposal. The reserve price must then be published for at least 7 days before the auction or fixed-date sale, and an auction or fixed-date sale cannot be conducted unless it has been published for that period.
Suspension of conveyancers' and estate agents' licences
A new Division 7A of Part 2 of the Conveyancers Act 2006 allows the Business Licensing Authority, where a licensee has not complied with the trust account requirements in s 84(1) or 85(1A), to give written notice that the licence will be suspended for a period of up to 12 months if the report required under s 85(1A) is not lodged by a date specified in the notice. While the licence is suspended the licensee is taken not to be licensed.
Equivalent provisions apply to estate agents under new sections 24E to 24G of the Estate Agents Act 1980, with the additional consequence that a suspended agent is ineligible to be or act as a registered agent's representative. Both sets of provisions commence on the day after royal assent.
Related amendments affecting property practice
The following provisions commence on the day after royal assent.
Owners corporations
Division 1 of Part 6 amends s 18 of the Owners Corporations Act 2006. An owners corporation is prohibited from commencing a proceeding in a court or tribunal unless authorised by special resolution, subject to 2 exceptions. An ordinary resolution is sufficient where the matter may be resolved by an order for payment of an amount, or relief, of no more than twice the total amount of the current annual fees set under s 23, and also where the order sought is non-monetary in nature. Each exception requires the court or tribunal to have jurisdiction to make an order of that nature.
VCAT applications in relation to a plan of subdivision
Part 10 amends s 34D of the Subdivision Act 1988 to expand the circumstances in which an application may be made to the Victorian Civil and Administrative Tribunal in relation to a plan of subdivision. The grounds extend to a member, or group of members, who refused consent to or did not vote on a proposed action, where more than half of the membership of the owners corporation, holding more than half of the total lot entitlement, consent to the action, and the purpose of the action is likely to bring economic or social benefits to the subdivision as a whole greater than the disadvantages to the members who did not consent.
Purchaser's right to rescind off-the-plan contract for residential apartment
A further amendment made in the Legislative Council inserts s 9AEA(3) into the Sale of Land Act 1962. The purchaser's right to rescind an off-the-plan contract for a residential apartment building does not apply where the developer is excepted from the requirement under s 137ZP(1) of the Building Act 1993 to arrange for the issue or execution of a developer bond.
Practical implications for lawyers and conveyancers
The practical consequences of the section 32 and deposit amendments include the following:
- Vendor instructions, searches, and certificates will need to be obtained before the sale campaign begins rather than before the contract is signed. A campaign cannot be advertised for auction or a fixed-date sale unless the section 32 statement can be made available 14 days before the first auction date or first fixed date. For a private sale campaign, the section 32 statement must be available from the day that is 14 days after the land is first publicly advertised, and if the land sells before that day, the statement must be available before the purchaser signs the contract.
- Disclosure needs to be monitored between the sale availability time and the contract, as written notice of any change is required before the purchaser signs.
- The file should clearly record when the statement was first made available, to who, and in what format, as this becomes the evidence for the rescission right in s 32K(3) and the offence in s 32L(c).
- Contracts and special conditions need to be reviewed. Where the parties agree to release the deposit before settlement, a condition must be included in the contract, and existing conditions drafted around the s 27 procedure will be redundant.
- Vendors relying on the deposit to fund a related purchase or to pay agent's costs need to understand from the outset that release before settlement depends on the purchaser's agreement.
- Two sets of section 32 timing rules will operate concurrently for 28 days after commencement, which affects both file management and advice given during that period.
- Failure to comply with trust account reporting obligations under s 85(1A) of the Conveyancers Act 2006 can result in a 12-month licence suspension.
- The obligation of obtaining the section 32 statement shifts to the purchaser. Where a contract refers to the statement by a link or online, the file needs to show that the statement was retrieved and reviewed before the contract was signed.
- The effect of a deposit release condition in a contract needs to be explained to the purchaser before signing.
Publication updates
The By Lawyers Victorian conveyancing and property publications will be updated when these amendments commence, including the commentaries, retainer instructions, to-do lists, the By Lawyers Contract of Sale of Land, and the Library of special conditions.