Real Estate & Commercial

Victorian Property Transactions - Major Changes Ahead

June 9, 2026

The Consumer Legislation Amendment Bill 2026 (Vic) (Bill), which is currently before Parliament, proposes several significant changes to various Acts in Victoria.

The most significant for real estate transactions are the proposed changes to the Sale of Land Act 1962 (Vic):

the repeal of Section 27 of the Sale of Land Act;
agents being prohibited from retaining their commission and costs when releasing a deposit prior to settlement; and
Vendor Statements needing to be available to purchasers at least 14 days prior to any auction or sale.

Early Release of Deposit

Section 27 of the Sale of Land Act currently contains a mechanism for vendors to access their deposit prior to settlement in certain circumstances. At present, parties cannot opt out of this section, which prevails despite a vendor and purchaser agreeing to other terms and conditions that may conflict with section 27. The Bill proposes that section 27 be repealed in full, with parties instead able to negotiate the circumstances of the deposit release by way of special condition.

It has also been common practice for real estate agents, who often hold deposits in conveyancing transactions, to retain their commission and other costs from the deposit when transferring it to a vendor prior to settlement. The Bill would prohibit an agent from retaining such commission and costs prior to settlement.

Vendor Statement

When selling land in Victoria, a vendor is required to make various disclosures to a purchaser. It does so by providing a ‘Vendor Statement’, issued pursuant to Section 32 of the Sale of Land Act. Currently, a purchaser must be provided with this statement at any time before signing a contract.

The Bill proposes that Section 32 Vendor Statements must instead be available (whether in hard or electronic copy) at least 14 days before any publicly advertised auction or fixed-date sale of the land, or in any other case, at least 14 days before a contract is signed. This is a significant shift from the current legislation. If the vendor fails to comply, not only may the purchaser, in certain circumstances, be able to rescind the contract at any time prior to settlement, but the vendor may also be liable for penalties under the Sale of Land Act (currently over $60,000 where the vendor is a company, and over $12,000 in any other case).

In addition to the above changes, the Bill proposes to make several other changes to Acts across the State, including amendments to:

Australian Consumer Law and Fair Trading Act 2012, regarding forfeiture, seizure and debt collection;
Conveyancers Act 2006, regarding the suspension of licences;
Domestic Building Contracts Act 1995, regarding certain agreements to vary domestic building contracts;
Estate Agents Act 1980, regarding trust account audit requirements and the sale of residential properties;
Owners Corporations Act 2006, regarding payment plans and proceedings;
Residential Tenancies Act 1997, regarding persons subjected to family violence and personal violence, compensation, keys and security devices, bonds and Part 4A parks;
Retirement Villages Act 1986, regarding the release of entry payments;
Subdivision Act 1988, regarding applications to VCAT;
Tobacco Act 1987, regarding powers to close premises, powers and penalties for commercial landlords and the forfeiture and destruction of illicit tobacco; and
Motor Car Traders Act 1986, regarding the administration of the Motor Car Traders' Guarantee Fund, warranty periods, licences, record keeping, the sale of used motor cars and consequentially amendments to the Building Act 1993 and the Magistrates' Court Act 1989.