Selling a Property

I'm looking to sell a property. What should I do first?

As soon as you decide to sell, contact us so we can begin preparing the legal documents required for the sale. We will:

• Open your file and send you our Client Authorisation Form and Vendor's Checklist
• Arrange your Verification of Identity (VOI)
• Begin preparing the Contract of Sale and Section 32 (Vendor Statement)

It's important to start this process early, as some certificates required for the Section 32 can take time to be issued.

What is a Section 32 (Vendor Statement)?

A Section 32 is a document that provides important information about the property to prospective buyers. It includes details such as:

• Title information
• Planning and zoning
• Services connected to the property
• Any mortgages, easements or restrictions
• Owners Corporation details (if applicable)

Before the Contract of Sale can be given to buyers, the Section 32 must be prepared and signed by you.

Do I need to sign anything before my property is marketed?

Yes. Once we have prepared the Contract of Sale and Section 32, we will send them to you for review. If everything is correct, you must sign the Section 32 before the documents are provided to agents or potential buyers.

What is “due diligence” for vendors?

From a vendor's perspective, due diligence means ensuring all required disclosures are accurate, complete and made early, so there are no issues once a contract is signed. This includes:

• Providing full and accurate information for the Section 32
• Advising us of any mortgages or charges on the property
• Letting us know where the original Certificate of Title is held

Why is proper disclosure in a Section 32 so important?

Proper disclosure in the Section 32 (Vendor Statement) is one of your most significant legal obligations when selling a property in Victoria. The purpose of the Section 32 is to ensure buyers receive all material information about the property before they sign a Contract of Sale. If required information is missing, inaccurate or misleading, the purchaser may have legal rights that can put the sale at risk.

Incorrect or incomplete disclosure may result in:

• The purchaser being entitled to end the contract
• Delays to settlement
• Renegotiation of the purchase price
• Potential disputes or claims after the sale

Preparing an accurate and compliant Section 32 from the outset helps protect your position, supports buyer confidence, and promotes a smoother transaction.

What must be disclosed in a Section 32?

The Section 32 must include certain prescribed information about the property, which may include:

• Title details and searches
• Any mortgages, caveats or restrictions
• Easements or covenants affecting the land
• Planning and zoning information
• Connected services (such as water, sewerage, electricity and gas)
• Council rates and other outgoings
• Owners Corporation details (if applicable)
• Any relevant notices or orders

We obtain the required certificates and prepare the Section 32 on your behalf, but the accuracy of the document also depends on information provided by you as the seller.

What information should I disclose to my lawyer?

You should tell us about anything you are aware of that could reasonably affect a purchaser's decision to buy the property, including:

• Unapproved or informal building works
• Outstanding notices from Council or other authorities
• Disputes with neighbours or service providers
• Informal access arrangements or shared driveways
• Any other issues that may affect the use or enjoyment of the property

If you are unsure whether something should be disclosed, it is always best to raise it with us early. We can then advise whether disclosure is required and how it should be addressed.

Can errors in a Section 32 be corrected?

Some errors or omissions can be corrected by issuing an updated Section 32 before a contract is signed. However, once a contract is signed, remedies may be limited and the purchaser may have rights to withdraw from the sale. Engaging us early and carefully reviewing the Section 32 before it is given to prospective buyers significantly reduces the risk of issues arising later.

Where can I find independent guidance about vendor disclosure obligations?

Consumer Affairs Victoria provides comprehensive guidance for sellers, including vendor disclosure requirements, understanding the Section 32, preparing a property for sale, and common mistakes vendors should avoid. We encourage all vendors, particularly first-time sellers, to review this information as part of their preparation.

How do TAIT Lawyers help with Section 32 disclosure?

We assist vendors by:

• Ordering all required certificates for the Section 32
• Preparing and reviewing the Vendor Statement with care
• Advising on disclosure obligations and risk areas
• Helping identify and address issues before the property is marketed

Our goal is to ensure your Section 32 is legally compliant, accurate, and supports a smooth and successful sale.

What happens once my property is sold?

Once your property sells, let us know immediately, and send us the fully signed Contract of Sale (or authorise us to obtain it from the agent). If there is a mortgage, provide your lender details so we can arrange a discharge authority. Remain mindful of any contract conditions, for example finance or building and pest conditions. We will monitor the contract to ensure all conditions are satisfied on time.

What is an early release of the deposit (Section 27)?

In some cases, you may be able to access the purchaser's deposit before settlement. This is called a Section 27 deposit release. Whether this is possible depends on whether there is a mortgage on the property, the information provided by your lender, and whether the purchaser objects (which only occurs in limited circumstances). We can advise you early in the process if this is something you may wish to pursue.

What is foreign resident capital gains withholding?

If you are an Australian resident, we will apply to the ATO for a foreign resident capital gains withholding certificate on your behalf. This confirms that you are not a foreign resident. Without it, the purchaser may be required to withhold a portion of the sale price at settlement and pay it to the ATO.

What happens between signing and settlement?

Between signing and settlement, we take care of all legal work, including:

• Liaising with your lender to discharge any mortgage
• Reviewing and approving the statement of adjustments
• Preparing settlement documents
• Coordinating everyone involved in the electronic settlement via PEXA

Around two weeks before settlement, you will also be asked to review and sign the Duties Online form electronically.

Will I receive settlement details before the day?

Yes. At least one week before settlement, we will send you a detailed settlement email confirming the settlement date and time, a breakdown of all monies at settlement, and where the sale proceeds will be paid. For security reasons, we will always verbally verify your account details before settlement.

Do I need to attend settlement?

No. Settlement takes place electronically via PEXA. You simply need to be contactable on the day in case we need to reach you.

What happens on the day of settlement?

On settlement day all parties complete the exchange electronically, funds are distributed securely, we confirm once settlement is complete, and the agent is authorised to release the keys to the purchaser. If settlement is delayed, we will keep you fully informed throughout the day.

What do I need to do after settlement?

After settlement you should cancel utilities and insurance from the settlement date, and keep your settlement statement for tax and accounting purposes. Approximately one to two weeks after settlement, we will provide you with a financial settlement statement.

Can you help if something goes wrong?

Absolutely. If any issues arise before settlement, contact us immediately. We will work with all parties to resolve matters wherever possible.

I still have questions. What should I do?

We're here to help at every stage of your sale. Feel free to contact our conveyancing team at any time.