Victoria’s property sale process is changing. Under the Consumer Legislation Amendment Act 2026 (Vic), which received Royal Assent on 8 September 2026, two long standing features of the Sale of Land Act 1962 (Vic) are being reformed: the timing of the Section 32 vendor statement, and the rules around releasing a deposit before settlement.
For vendors, purchasers and agents alike, these changes affect how a sale is prepared, when key documents must be ready, and what happens to deposit funds while a contract is on foot.
What Is Changing?
The reforms make two main changes to the Sale of Land Act 1962 (Vic): a new two tier timing rule for when a Section 32 vendor statement must be available, and the replacement of the old Section 27 early deposit release regime with two new provisions, Section 26A and Section 26B.
When Must the Section 32 Be Available?
For an auction or fixed date sale, the Section 32 statement must generally be available at least 14 days before the first auction or fixed sale date. For any other sale, including a private sale, it must generally be available at least 14 days before the purchaser signs the contract.
This replaces the previous approach, which did not set out separate timing rules depending on how the property was being sold. Vendors and their agents will need to plan further ahead to have the statement ready in good time.
What Is Happening to the Deposit Release Rules?
Section 27 of the Sale of Land Act, which allowed a purchaser to authorise early release of their deposit before settlement, is being repealed. In its place, new Section 26A allows a deposit to be released early where the contract itself provides for it, and new Section 26B prevents an agent from deducting their commission from an early released deposit before settlement or rescission occurs.
In practice, this means commission can only come out of a deposit once the sale has actually settled, or the contract has been rescinded, rather than at the point the deposit is released early.
Is There a Transition Period?
Yes. A 28 day transitional period applies once the changes commence, to allow vendors, purchasers and agents time to adjust existing arrangements and documentation.
When Do the Changes Commence?
The changes commence on proclamation, or no later than 1 June 2027 if no earlier proclamation date is fixed. This applies to both the Section 32 timing changes and the new deposit release provisions.
What Does This Mean for Vendors and Agents?
Vendors and agents should build the new Section 32 timeframes into their sale preparation from the outset, particularly for auctions and fixed date sales where the 14 day countdown runs from a set date rather than from when a buyer is found. Getting the vendor statement organised early avoids a last minute scramble, or worse, a sale that cannot proceed on the planned date.
Non-compliance carries real consequences. If a Section 32 statement is not available within the required timeframe, a purchaser may be entitled to rescind the contract before settlement, and a vendor or agent who fails to comply with the new requirements may also be exposed to statutory penalties.
Agents should also review how they handle early released deposits, since commission can no longer be deducted before settlement or rescission under the new Section 26B.
What Should Purchasers Know?
Purchasers benefit from clearer, more predictable timeframes for receiving the Section 32 vendor statement, giving more time to review the document and obtain advice before committing to a contract, particularly at auction where decisions are often made quickly.
Dimitria Kastanis | Associate
E dimitriak@zervoslawyers.com.au
P (03) 9865 8900
Disclaimer This article provides general information only and does not constitute legal advice. It should not be relied upon in place of specific advice from a qualified lawyer regarding your particular circumstances.
