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You spot a 'sold' sticker slapped across a board on a quiet Brunswick street and wonder what that really means. A mate says the contract just went unconditional. Another insists it is not truly sold until settlement day. You can almost hear the tram rumble past as you weigh it up. Let's cut the noise and pin down what 'unconditional' and 'sold' mean in Victoria, with plain answers and local examples.
The Quick Answer
'Unconditional' means the contract has no outstanding conditions that let the buyer back out, such as finance or a building clause. Everyone is bound to settle on the agreed date. 'Sold' is used in two ways. In Victorian law, a property is sold when the buyer and seller have both signed the contract of sale. The deal is finalised at settlement, when the price is paid and the title transfers.
So, does 'unconditional' mean sold? In legal terms, a property can be described as sold from the moment both parties sign. In day to day Melbourne real estate, many agents wait until the contract becomes unconditional to shout 'sold', especially for private sales, since the cooling off right and other conditions have fallen away. Platform rules also encourage a 'sold' status when a private sale becomes unconditional or after an auction.
When Exactly Is a Property 'Sold' in Victoria?
Consumer Affairs Victoria is clear. In a private sale, the property is sold when both buyer and seller have signed the contract. The sale is finalised at settlement, which is usually between 30 and 90 days, as agreed in the contract.
At auction, the property is sold when you and the successful bidder sign immediately after the hammer falls. There is no cooling off right at auction. The buyer pays the deposit on the day, then waits for settlement.
What Does 'Unconditional' Really Mean?
An unconditional contract is one with no outstanding conditions. There is nothing left that would allow the buyer to walk away under a condition in the contract itself. In Victoria, a private sale becomes unconditional once all listed special conditions are satisfied, or immediately on signing if none were inserted. An auction contract is unconditional from the start, because auction rules do not allow conditional bids.
Plenty of guides summarise it the same way: once unconditional, both parties must proceed to settlement. Put simply, there is no contractual safety valve left for the buyer.
Cooling Off: The Melbourne Wrinkle That Confuses Everyone
Private sales of residential property in Victoria carry a three business day cooling off right. It starts the day after the buyer signs. If the buyer cools off, they receive a refund less $100 or 0.2 per cent of the price, whichever is greater. There are key exceptions, including properties sold at or within three clear business days before or after a public auction, larger farming properties, and properties bought by companies.
That is why many Melbourne agents prefer to hold off on the 'sold' sticker for a few days in a private sale, then switch the listing to 'sold' once the cooling off has expired and any conditions, such as finance, have been ticked off. Platform guidance also allows agents to mark a listing 'sold' when a private treaty becomes unconditional. It is a marketing convention, not the legal moment the contract first became binding.
Deposits, How Much, and Who Holds Them
You will often hear 'ten per cent'. There is no law fixing the amount, yet Consumer Affairs Victoria says the deposit is usually 10 per cent, paid when contracts are signed. It is held in trust by the agent, the seller's conveyancer or solicitor, or jointly. At auction, the same 'usually 10 per cent' custom applies.
Early Release of the Deposit: Section 27 in a Nutshell
Vendors sometimes want early access to the deposit before settlement. That is only possible through a Section 27 process under the Sale of Land Act. The contract must be unconditional and the buyer must be satisfied with the seller's disclosure of debts and related particulars. Purchasers can object, and recent commentary and decisions reinforce that Section 27 is a strict statutory process that cannot be watered down by special conditions.
Plenty of Melbourne conveyancers caution buyers about signing off too quickly on a Section 27. A cautious approach is normal, and silence after the statutory period can be treated as acceptance, which is one more reason to get advice.
Settlement: When the Sale Is Final and Keys Change Hands
Settlement is the finish line. It is the date in the contract when the balance of the price is paid, the transfer is lodged and the buyer becomes the registered owner. Common timelines are 30 to 90 days. Many Melbourne campaigns run with a standard 60 days, though it is negotiable.
There have been recent tweaks to the standard REIV and LIV Contract of Sale, including timing changes for off the plan settlements and the removal of the old small damage withholding mechanism. If you are buying a new apartment in the CBD or a townhouse in Preston, those changes can affect your timing and risk management.
Who Carries the Risk Before Settlement?
In Victoria, the vendor generally carries the risk of loss or damage to the property until settlement, and must deliver it in the same condition as at the day of sale, fair wear and tear excepted. Consumer Affairs Victoria's disaster guidance and bank advisories reflect the same position, and the standard contract has tracked this approach, though clause numbers have shifted in the 2025 update. Buyers should still insure from the contract date as a belt and braces step.
You also have a right to a pre settlement inspection during the week before settlement to confirm the property is in the agreed condition. Use it. If anything small needs fixing, your conveyancer can seek a practical solution.
So, When Do Agents Put Up the 'Sold' Sticker?
Legally, the deal is 'sold' on the day both parties sign. In practice, many boards around Melbourne get the 'sold' sticker once the contract is unconditional, and some risk averse offices wait until settlement. Online listing rules from major platforms support marking a listing as 'sold' when the contract becomes unconditional, after auction, or when the agency has publicly referred to it as sold. Think of it as marketing status, not legal status.
Everyday Melbourne Scenarios
You Bought a Two Bedroom Unit in Carlton by Private Sale, Subject to Finance
You sign on a Tuesday. Your cooling off runs for three clear business days from Wednesday. Finance approval lands the following week. Once you notify the agent that finance is approved, the contract becomes unconditional. The agent flips the board to 'sold', and you head for a 60 day settlement. Legally, you were 'sold' once both signed, though you still had cooling off and your finance condition to clear.
You Won a Townhouse in Coburg at Auction
No cooling off applies. You sign on the day, pay the deposit, and the contract is unconditional from the start. The board usually shows 'sold' that afternoon, while you work through your lender's post approval steps and book a pre settlement inspection a week out from the agreed date.
You Are Selling in Yarraville and Want Your Deposit Early to Help Fund Your Next Purchase
Your conveyancer serves a Section 27 statement. The buyer can object if the information is incomplete or they are not satisfied. Even if the contract is unconditional, early release is not automatic, and any attempt to shortcut the statutory timing by special condition will not fly. Plan your cash flow in case the deposit stays in trust until settlement.
A Storm Damages the Roof in the Week Before Settlement on a Northcote Terrace
The vendor bears the risk before settlement and must deliver the property in the same condition as sold, fair wear and tear excepted. Your conveyancer will liaise on repairs or a monetary adjustment. Keep your pre settlement inspection, and get photos.
Private Sale Versus Auction: Where 'Unconditional' Shows Up
Auction: unconditional at the moment of sale, no cooling off, deposit paid on the day.
Private sale: can be conditional at first, often on finance or a building report. It turns unconditional when those boxes are ticked or when no conditions were written in at all. Cooling off applies to most private sales unless an exception applies.
Section 32: The Melbourne Must Have
Before a property is sold, the vendor must provide a Section 32 vendor's statement. It discloses title information, easements, rates and similar details. It sits alongside the contract and should be reviewed before you sign. If you are browsing in the inner north and the agent cannot produce a current Section 32, take a breath and let your conveyancer check it once it appears.
'Under Offer', 'Under Contract', 'Sold': A Plain English Guide
Under offer: an offer is on the table, not yet accepted and signed by both parties.
Under contract: buyer and seller have both signed. In Victoria, that is when the property is sold in law, subject to cooling off and any conditions.
Unconditional: no outstanding conditions remain. Both parties must proceed to settlement.
Sold: the word you see on boards or listings. Often used once unconditional, always final once settlement occurs. Platform rules allow 'sold' when a private sale becomes unconditional or straight after auction.
Common Questions Melbourne Buyers Ask
Does 'Unconditional' Mean I Can Move In Now?
Not yet. You get the keys at settlement after paying the balance and transferring title.
Can a Buyer Pull Out of an Unconditional Contract?
Rarely. Only in limited situations, for example where the contract or law gives a right to end due to serious damage or a breach. Your conveyancer will check the contract's wording and any special conditions.
Is the Deposit Always Ten Per Cent?
No. It is usually 10 per cent, yet parties can agree on a different figure. At auction, ten per cent is common, and you can sometimes arrange a part deposit by agreement.
Can the Vendor Get the Deposit Before Settlement?
Sometimes, through the Section 27 process. The contract must be unconditional and the buyer must be satisfied with the seller's debt particulars. The process follows strict statutory rules.
What If the Property Is Damaged Before Settlement?
In Victoria, the vendor generally carries the risk before settlement. Speak to your conveyancer quickly and document the damage, then work toward repairs or an adjustment.
Buyer Checklist for Melbourne Homes
Ask your conveyancer to review the Section 32 and draft contract before you sign, especially in a private sale along the tram corridors where auctions can be fast and stock moves quickly.
If you need finance, make your offer subject to finance and set a realistic approval date.
Calendar the three business day cooling off window and the finance date, then relax once you reach unconditional.
Budget for a 30 to 90 day settlement, book your pre settlement inspection in the week before, and keep copies of final meter readings.
Arrange insurance from contract date as a prudent step, even though the vendor holds risk until settlement in Victoria.
Seller Checklist If You Are Putting a 'Sold' Sticker On in Melbourne
Confirm both parties have signed and the deposit has been paid into trust.
Note your buyer's cooling off window for a private sale, and any conditional clauses such as finance. Hold off public 'sold' announcements until those hurdles clear or be prepared to roll back marketing.
If you want the deposit before settlement, talk to your conveyancer about the Section 27 statement and the timing rules. It is not automatic, and shortcuts are risky.
Keep the property insured and in the same condition through to settlement, then co ordinate keys and access with your agent.
A Note on Recent Contract Tweaks
Victoria's standard contract was refreshed in September 2025. Among other changes, minor damage withholding has been removed and off the plan settlement timing has shifted. If you are buying a new apartment off the plan in the CBD or a townhouse in Doncaster, ask for advice on how that affects your settlement window.
The Take Home for Melbourne Buyers and Sellers
In law, a private sale is 'sold' once both parties sign the contract.
In practice, the market often reserves the 'sold' sticker for the moment the contract becomes unconditional, then waits for settlement to finish the deal.
Unconditional does not mean you own it yet; ownership transfers at settlement. Keep an eye on conditions, insurance, and your pre settlement inspection.
If you are weighing up an offer in Kew or chasing finance for a family home in Glen Iris, a quick chat with a conveyancer who lives and breathes Melbourne property can save a lot of worry.
Need a Human to Look Over Your Contract?
Pearson Chambers Conveyancing will review your Section 32 and contract at no charge, and talk you through whether 'unconditional' really means 'sold' in your specific case.