Changes Ahead for Victorian Property Sales: Section 32 Statements and Early Release of Deposits

Changes Ahead for Victorian Property Sales: Section 32 Statements and Early Release of Deposits

Victorian property vendors and their advisers will need to prepare for changes to Section 32 vendor statements and the early release of deposits in 2027.

The Consumer Legislation Amendment Act 2026 (Vic), which received Royal Assent on 8 September 2026, introduces changes to two familiar aspects of conveyancing practice:

• From 1 June 2027, new requirements will govern when Section 32 statements must be made available during a residential sales campaign.
• From 1 July 2027, the existing statutory procedure for early release of deposits will be replaced by a contractual model.

For vendors and their advisers, the changes make preparation before a property is placed on the market increasingly important.

When must Section 32 statements be available

While Section 32 statements are commonly prepared before a property is advertised, the existing legislation does not generally require them to be made publicly available within a specified period after a sales campaign begins.

From 1 June 2027, where an estate agent is engaged to sell residential property, the agent must make the Section 32 statement available:

• For private sales: within 14 days after the property is advertised for sale.
• For auctions and fixed-date sales: at least 14 days before the auction or fixed-date sale.
• Where the property is not advertised or will be sold within 14 days of being advertised: before the purchaser signs the contract.

What this means for vendors and agents

The change may appear relatively modest, but it will introduce a clearer statutory timetable for preparing residential sales documentation.

At present, agents may commence preparations for a sales campaign while the contract and Section 32 statement are still being finalised. The new timeframes will make early instructions particularly important where preparing the statement is not straightforward.

Additional time may be required where a property:

• forms part of an owners corporation;
• comprises multiple titles;
• has unusual easements, covenants or restrictions;
• involves recent building works, including possible owner-builder works; or
• requires information from councils, water authorities or other bodies.

The practical message for vendors is straightforward: engage your lawyer or conveyancer early so that any issues can be investigated before the relevant deadline.

How the existing deposit release process works

Under the existing regime, a purchaser’s deposit is generally held in trust pending settlement. Section 27 of the Sale of Land Act 1962 (Vic) establishes a statutory procedure through which a vendor can seek early release.

The process requires the vendor to provide information about mortgages and other debts secured over the property. Release depends on the statutory requirements being satisfied, including those relating to secured debts and the purchaser’s opportunity to consider the information provided.

For practitioners, this involves preparing and serving what is commonly referred to as a Section 27 statement.

Early release will become a contractual issue

From 1 July 2027, the existing statutory early-release procedure will be repealed. Instead, vendors and purchasers will be able to agree to early release by including a condition in the contract of sale.

This will shift consideration of deposit release to the negotiation and preparation of the contract.

Vendors who want access to the deposit before settlement should raise that requirement with their lawyer or conveyancer at the outset. Purchasers and their advisers will need to consider whether they are prepared to agree and what protections should accompany any release.

Careful drafting will be important, including identifying when release may occur and which conditions must first be satisfied.

Preparing for the changes

Although the reforms affect different stages of a property transaction, both make early preparation increasingly important.

Vendors and agents should allow sufficient time to prepare Section 32 statements within the new timeframes. Where early access to the deposit is required, that issue should also be considered when the contract is prepared.

With the reforms commencing in mid-2027, legal documentation should form part of planning the sales campaign. Vendors, agents and property practitioners should review their processes and contractual documentation ahead of the changes.

Please contact our Property Law team if you would like to discuss how these changes may affect your proposed sale or purchase.