![[object Object]](/lib_lphGCikIbVHjRWIV/w8mzrofmgaa9b3om.png?w=52){kind=small}
Short answer: If you want to sell the whole property, yes, every registered proprietor must agree or give someone written authority to act for them. If one owner refuses and you cannot sort it out, the Victorian Civil and Administrative Tribunal (VCAT) can make orders to sell or divide co-owned land. There are exceptions in special situations such as mortgagee sales, family law orders, and deceased estates.
What This Guide Covers
- How co-ownership works in Victoria
- Who must sign the authority and the contract to sell
- What happens if one owner will not agree
- Special scenarios: separation, death, power of attorney, and mortgagee sales
- Practical steps for Melbourne vendors, including Section 32 and owners corporations
Co-ownership Basics in Victoria
Most Melbourne homes owned by more than one person are held either as joint tenants or tenants in common. Joint tenants each own the whole together. If one joint tenant dies, the survivor takes the title by survivorship, then becomes the person who can sell. Tenants in common own defined shares, which pass through their estate rather than automatically to the other owner.
In day-to-day terms, neither a joint tenant nor a tenant in common can sell the entire property without the others agreeing. A tenant in common can sell their own share to a third party, although that is rarely attractive to buyers who want the whole property.
Who Has to Sign to Sell a House?
1) The Sales Authority with the Agent
If you appoint a real estate agent, the agent must hold a written authority to act. That authority is an engagement by the person who is selling. Where there are multiple vendors, the practical and proper course is for each registered proprietor, or someone with their written authority, to sign the authority before the agent markets the property.
2) The Section 32 Vendor Statement
In Victoria, the vendor must give a signed Section 32 statement to a buyer before the buyer signs the contract. This disclosure is mandatory. If there is more than one vendor, the statement is prepared and signed on behalf of the vendors.
3) The Contract of Sale
A contract becomes binding when signed by the buyer and the seller. For a sale of the whole property, that means every registered owner must sign, or an authorised representative must sign for them, for example under a power of attorney or as executor of a deceased estate.
If One Owner Will Not Agree
Co-owners often try practical solutions first. You can agree a buyout at market value, try mediation, or adjust settlement entitlements to recognise different contributions. If you cannot agree, Victoria has a formal pathway.
Apply to VCAT Under the Property Law Act 1958
Part IV lets any co-owner apply to VCAT for orders to sell or divide co-owned land. VCAT has broad powers to order a sale, set the method of sale, appoint a person to sign documents, and divide the net proceeds. This is the usual route for disputes between friends, siblings, investors and other non-spousal co-owners.
What Does VCAT Look At?
VCAT aims for a just and fair outcome. It can order a sale where continuing co-ownership is not workable. Published decisions show VCAT ordering the sale of land and leaving details like timing and sale method to further directions.
Can I Just Sell My Share?
A tenant in common can sell their fractional interest without the others, but there is a very limited market for part interests in homes. Most people head to VCAT if a negotiated buyout is not possible.
Relationship Breakdown and the Family Home
For married and de facto couples, disputes about selling the home usually sit with the Federal Circuit and Family Court of Australia. The Court can make property settlement orders that include the sale of real estate. It can also make injunctions restraining a person from selling or dealing with property until a fair division is worked out.
In practice, that means if one partner tries to push through a sale or to transfer the home, the other can apply for orders to pause things, or for an order that the property be sold and the proceeds kept in trust pending settlement.
Death of an Owner
Joint Tenants
If joint proprietors hold the title and one dies, the survivor becomes the sole owner by lodging an Application by Surviving Proprietor with Land Use Victoria. Once registered as sole proprietor, the survivor can sign the authority, Section 32 and contract.
Tenants in Common
The deceased owner's share passes to their estate. The executor usually needs a Grant of Probate from the Supreme Court before they can complete a sale of that share or of the whole property. Contracts are often made conditional on probate if timing requires it.
Power of Attorney or Owner Overseas
If a co-owner is overseas or has lost capacity, a valid enduring power of attorney can authorise someone to sign sale documents on their behalf. Powers of attorney operate only while the principal is alive, and attorneys must act in the principal's best interests. Professional advice is wise before an attorney agrees to sell the family home.
Mortgagee Sales and Other Forced Sales
If the loan falls into default, the lender can take possession and sell the property to recover the debt. The mortgagee must take reasonable care to sell at market value or best price. This can proceed without the owners consenting to the sale, because the mortgage gives the lender that power.
Caveats and Title Protection
Worried someone might try to sell without you? A co-owner with a legal interest can lodge a caveat with Land Use Victoria. A caveat blocks most dealings from being registered until the caveat is withdrawn or removed. Caveats are governed by the Transfer of Land Act, and Land Use Victoria publishes the forms and guides.
Owners Corporations
If you are selling a flat or townhouse with an owners corporation, your Section 32 must include an owners corporation certificate and supporting documents. A missing or outdated certificate is a common reason buyers delay or pull out, so get it ordered early.
Step-by-Step for Melbourne Vendors
1) Check the Title and How You Own
Your conveyancer can get an up-to-date title search and confirm whether you hold as joint tenants or tenants in common. If you are a joint tenant and your co-owner has died, lodge the survivorship first.
2) Get the Paperwork Moving
Ask your conveyancer to prepare the Section 32 vendor statement, including rates, services and any owners corporation material. Buyers must receive this before they sign.
3) Appoint the Agent Properly, or Sell Privately
If you use an agent, make sure each registered proprietor signs the sales authority, or that a power of attorney or executor signs with the right supporting documents. You can sell privately if you prefer, but the same legal documents apply.
4) If There Is a Dispute, Act Early
Mediation often saves time and money. If that fails, get advice about a VCAT application under the Property Law Act for an order to sell. Family law disputes between partners usually go to the FCFCOA rather than VCAT, so choose the right forum.
Quick Answers to Common Questions
Can One Co-owner Sign the Contract for Everyone?
Not unless they hold a valid authority, such as a power of attorney, or a court or tribunal order authorises it. For a sale of the whole property, you need every owner on board, or a legal mechanism that replaces their signature.
We Are Tenants in Common, Can I Sell Anyway?
You can sell your share, but the buyer will take only that undivided share and will then co-own with the other person. Most owners either agree a buyout or seek a VCAT order for sale of the property with proceeds divided.
What If My Ex Is Trying to Sell the House Quickly?
Apply to the FCFCOA for an injunction under section 114 of the Family Law Act. The Court can restrain any sale or transfer until the property settlement is resolved.
Do I Really Need a Section 32?
Yes. A buyer must receive a signed Section 32 vendor statement before they sign the contract. Missing or incorrect disclosure can let a buyer walk away or claim compensation.
Is a Mortgagee Sale Possible Without the Owners' Consent?
Yes. If the loan is in default and the mortgage terms allow it, the lender can take possession and sell, subject to duties to act reasonably and obtain best price.
Key Takeaways
- To sell the whole property, all registered proprietors must sign the authority and the contract, or authorise someone to sign for them
- If one owner will not agree, VCAT can order sale or division of co-owned land under the Property Law Act
- In relationship breakdowns, the FCFCOA can order a sale or restrain a sale under the Family Law Act
- After a joint tenant dies, the survivor becomes sole owner by survivorship and can proceed to sell. For tenants in common, the executor deals with the deceased's share, usually after probate
- Mortgagees can sell without the owners' consent if the mortgage is in default, but must act to achieve market value or best price
- Lodge a caveat if you need to block unauthorised dealings with title while a dispute is sorted
A Melbourne-Specific Checklist
Before Listing
- Order your title search and confirm ownership type
- In an owners corporation, order the certificate early for your Section 32
- Decide whether to appoint an agent. If so, make sure each owner signs the authority, or get a power of attorney in place
- Ask your conveyancer to prepare and quality check the Section 32
If There Is a Dispute
- Try mediation or a buyout at a valuer's figure
- If stuck, speak to a lawyer or an experienced conveyancer about a VCAT application for sale orders, or family law options if relevant
Final Thought
Melbourne property law rewards clear paperwork and early advice. When all owners agree and sign correctly, a sale should move smoothly from Section 32 through to settlement. When one owner will not agree, there are real options to break the deadlock. The trick is to choose the right pathway, line up the right documents, and keep your timelines realistic.
Need Help or a Free Section 32 Review?
If you are weighing up a sale and want a straight answer on who needs to sign, or you need to navigate a tricky co-ownership, get in touch. Pearson Chambers Conveyancing can review your Section 32 for free and talk you through the best path for your situation.
Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au