Procedure For Selling A House

Selling your family home or investment property is one of the largest financial decisions most Victorians will ever make, so it pays to know the process inside out. Below is a practical, plain-English roadmap created especially for vendors in Melbourne and regional Victoria. It pulls together current guidance from Consumer Affairs Victoria, leading conveyancers and practising solicitors, and breaks the sale journey into manageable steps. Whether you are upsizing, downsizing or liquidating an investment, this comprehensive guide will help you move forward with confidence.

Procedure for Selling a House Victoria

1. Clarify Your Goals and Gauge Market Timing

Begin by asking why you are selling and how quickly you need the funds. Speak with a trusted estate agent about recent comparable sales in your suburb, median prices and buyer demand. Melbourne's market can shift with interest rates and seasonal trends, so timing matters. If you are purchasing another property, discuss bridging finance early to avoid pressure later.

2. Engage a Conveyancer or Property Solicitor Straightaway

Under Victorian law a qualified conveyancer or legal practitioner must prepare the Vendor Statement (Section 32) and review the Contract of Sale. Involving them at the very start means they can order titles, property certificates and identify encumbrances before any buyer sees your home online.

3. Collect Mandatory Disclosure Documents

Your conveyancer gathers the title search, plan of subdivision, council rates, water rates, owner-builder report (if relevant), planning permits and any owners corporation certificates. These form the backbone of the Section 32 statement that you must give every prospective buyer before they sign a contract. Inaccurate or missing information can lead to cancellation or compensation claims, so accuracy is critical.

4. Choose a Sale Method and Appoint an Estate Agent

Victorian property can be sold by private treaty, auction, or a fixed-date "expression of interest". Each strategy has advantages. Private sale offers flexibility in negotiations; auction can drive competition in a hot market. Your chosen agent must provide a written sales authority and disclose their commission structure.

5. Set a Realistic Price and Prepare the Statement of Information

Since 2017 underquoting reforms, every residential listing in Victoria must include a Statement of Information showing an indicative selling price, three comparable sales and the suburb's median price. Vendors must sign off on these figures, and the document must appear in online advertisements, at inspections and on request.

6. Present and Market the Property

Declutter, undertake minor repairs and consider professional styling to maximise appeal. Your agent arranges photography, floorplans, copywriting, online listings and print marketing. Melbourne buyers expect high quality visuals and transparent information. Keep receipts for staging costs; some may be tax deductible on investment properties.

7. Conduct Open Inspections and Respond to Enquiries

During the marketing campaign your agent hosts open for inspections, answers due diligence questions and distributes the Contract of Sale and Section 32. Vendors should make the home easy to access yet secure valuables and sensitive documents.

8. Accept an Offer or Run the Auction

For private treaty, you may receive written offers subject to finance, building inspections or sale of an existing home. For auction, the hammer falls to the highest bidder provided the reserve is met. Once both parties sign the contract and the 10 per cent deposit is paid, a binding agreement exists. If the sale is by private treaty, the purchaser normally enjoys a three business day cooling off period (unless they waived it or bought at auction).

9. Consider an Early Release of the Deposit (Section 27)

Where the contract is unconditional and the mortgage is below 80 per cent of the sale price, you may apply for early release of deposit funds under Section 27 of the Sale of Land Act 1962. The purchaser can object within 28 days, so plan finances accordingly.

10. Prepare for Settlement

Between exchange and settlement typically 30 to 90 days your conveyancer:

• arranges discharge of mortgage with your lender
• prepares the Transfer of Land and Notice of Disposition for the electronic platform PEXA
• calculates rate adjustments and water usage up to settlement day
• confirms that the buyer's final inspection is satisfactory

Utilities (gas, electricity, internet) should be cancelled or transferred the day after settlement to avoid extra charges.

11. Settlement Day

On settlement your conveyancer exchanges signed documents and receives the balance of funds electronically. Keys are handed over via the agent, liability for rates passes to the purchaser and you can celebrate a successful sale.

Forms and Documents Required for Selling a Property VIC

The paperwork underpinning a Victorian property sale is extensive, but staying organised minimises risk and speeds up settlement. Below is a checklist of the key forms and certificates most Melbourne vendors will need. Always confirm your particular requirements with a licensed conveyancer.

Essential Legal Documents

Section 32 Vendor Statement

This statutory disclosure outlines title particulars, easements, services, planning information, outgoings and any notices. Must be accurate and served on each potential buyer before contract execution.

Contract of Sale (and Special Conditions)

The legal agreement setting out price, deposit, settlement date, inclusions and any special clauses (for example early possession or rent-back). Prepared or reviewed by your conveyancer.

Statement of Information

Required for every residential listing. Displays indicative price, three comparable sales and the suburb's median house or unit price.

Property Marketing Documents

Agency Authority to Sell

The written contract between you and the estate agent, confirming commission, advertising budget and authority period. Retain a signed copy for your records.

Due Diligence Checklist (Form 2)

Real Estate agents must make this Consumer Affairs Victoria leaflet available at open homes. Although it is not strictly part of the vendor's pack, providing it demonstrates transparency.

Property Verification Documents

Certificate of Title and Plan

Fetched from Land Use Victoria to confirm ownership details and lot boundaries.

Property Certificates and Searches

Council rates, water rates, land tax, owners corporation, building permits, planning certificates, VicRoads, Environmental Protection Authority and heritage searches may be needed depending on location and property type.

Compliance and Safety Documents

Owner-Builder Defect Report (if applicable)

Mandatory where building works valued over $16,000 were completed within six years and six months of the contract date.

Pool and Spa Compliance Certificate

Since June 2022 all Victorian pools and spas must be registered with the local council and have a current Certificate of Barrier Compliance before settlement.

Energy and Safety Documentation

A current Electrical Safety, Gas Safety and Smoke Alarm check can be attractive to buyers and will soon become compulsory under the Victorian Residential Tenancies Regulations for investment properties.

Financial and Legal Requirements

Discharge of Mortgage Authority

Signed instruction to your lender to release the mortgage at settlement. Provide this early most banks require 21 days' notice.

Verification of Identity (VOI)

Mandatory face to face or digital identity check to satisfy anti money laundering laws.

Insurance

Keep building insurance active until 4 pm on the next business day after settlement; the risk of damage remains with you until then.

Final Thoughts

Selling a property in Victoria involves far more than handing over keys. By understanding each stage, assembling the right professional team and preparing the proper documents, you can reduce stress, avoid legal pitfalls and achieve the best possible price.

Ready to take the next step? Pearson Chambers Conveyancing is here to guide Melbourne vendors through every milestone, from drafting an impeccable Section 32 to completing settlement on time. Contact our friendly team for clear advice and a free Section 32 contract review today.

Contact Information

• Phone: 03 9969 2405
• Email: contact@pearsonchambers.com.au