Real Estate in Victoria

In case you’d like to sell privately in Victoria, the main thing to consider is whether you are legally allowed to offer your property without an Agent. Yes, you definitely can. In case you’re concerned about this, you can affirm it with Consumer Affairs Victoria. Following are the steps to getting it done:

Step 1: Getting started with the contract of sale

The first step is to guarantee that you have your contract of sale drawn up by your lawyer or conveyancer before publishing your property available to be purchased. They will likewise need to set up a vendor’s Statement (otherwise called a Section 32) which incorporates subtle elements of the property title, remarkable home loans, contracts, easements, zoning, outgoings and declaration if situated in a bushfire-prone region. You should sign this legal document, and if that it is considered to be erroneous or inadequate the purchaser can deal with it legally or pull out of their deal. In your agreement indicate if any chattels are to be excluded, for example, pot plants or machines. Dishwashers, range hoods, curtains and blinds are usually included.

The Vendor’s Statement must be made accessible at all open for examinations, and given to the purchaser before the purchase of the property.

In the event that you are selling in an owners’ corporation, it is required that you provide an owners’ corporation certificate with related documents.

Step 2: Pricing

It is illegal to misrepresent the property’s sale price. The selling price cannot be less than that quoted by the agent or the least amount you would accept. To research your price, you can:

  • Look for comparable sold properties and for sale properties online such as

  • Get a valuation from an independent property valuer.

  • Ask for a property valuation estimate or range from real estate agents.

Step 3: Private Inspections

The third step would be inspections. You will probably need to allow purchasers to review the property through open homes or private inspections once the property is advertised. Right now (or on demand), you should give potential purchasers a duplicate of the Due Diligence Checklist, accessible here: .

Step 4: Receiving the offer

In most cases, offers take the form of a signed contract for sale of residential property. Buyers may add an expiration clause to the sale contract so that the offer lapse after a period of time if the seller has not signed by a specific date. Have your lawyer or conveyancer examine any progressions made by the purchaser to the sales contract.

In the event that somebody makes you an offer on your property you may take a holding deposit of the total or a nominated fractional sum. This ought to be held in your lawyer’s trust account and to be returned if the offer is rejected.

Step 5: Signing the contract

The following step in the lawful procedure of selling a property in VIC is for you and the purchaser to both sign the contract of sale. Two copies of the agreement are required, one for you to sign and one for the purchaser to sign. You should sign your copy, and give it to the buyer to sign also. From now on, you could consider marking your property as “Under Contract” on various sites, however it is recommended to keep a record of all enquiries from other prospective buyers just in case the deal does fall through.

Step 6: Exchange

Exchange implies that both you and the purchaser have signed a copy of the contract of sale and have exchanged the contract with each other. Exchange doesn’t really need to happen face to face, it could be by means of mail or by means of a third party, for example, your conveyancer. Remember that you and the purchaser aren’t lawfully bound until all copies of the agreement have been signed and exchanged.

Step 7: Cooling Off

Save some exceptions, in VIC, the buyer of residential property is entitled to a cooling off period of 3 business days. The cooling off period initiates from when the purchaser receives a copy of the contract of sale signed by both parties. At this time, the purchaser can cancel the sale but will forfeit the more prominent of $100 or 0.2 per cent of the sale price with any amount being compensated.

There is no cooling off period when an offer is acknowledged inside three full business days before or after an auction.

To pull back from a deal, the purchaser must complete a signed cooling-off notice and convey it to the seller or their authorised agent.

After the expiration of the cooling-off period, the amount of the deposit is payable by the purchaser and ought to be held in trust until settlement happens (e.g. 10% of the purchase price less holding deposit).

The cooling off period can be cancelled or reduced by notifying the seller or their agent in writing.

The amount of the deposit is payable by the purchaser and ought to be held in trust after cooling off (e.g. 10% of the purchase price less holding deposit).

Step 8: Settlement

You and the purchaser will consent to a settlement date once the contract has been signed. Settlement is generally 30 to 90 days after exchange yet both parties can agree to a different period. At settlement the purchaser “settles” their purchase by paying the whole amount. They should likewise repay the cost of the building and compliance inspection report, and pest examination report. In case you’re using a lawyer, they may meet with the purchaser’s solicitor to guarantee they have everything required for the deal to continue.

Selling via Auction

It is advisable to book your Auctioneer before posting your property, so that the date and time can be incorporated into any advertising.

The property is considered sold once the reserve price is met or surpassed. If no reserve was set, then the highest bidder wins at any price. There is no cooling-off period for a property sold at auction and the contract of sale is unconditional. Settlement happens in a similar manner as for a private treaty sale.

The Victorian auction guidelines and auction information statement must be displayed at the auction for no less than 30 minutes preceding the auction. Damages apply for breaking these rules.