How the Consumer Legislation Amendment Bill 2026 Could Change Victorian Property Sales

The Victorian Government has proposed significant changes to the Sale of Land Act 1962 (Vic) which, if enacted, will affect when section 32 Vendor Statements must be available to prospective purchasers and how deposits may be released before settlement.

The proposed reforms are contained in the Consumer Legislation Amendment Bill 2026.

The changes proposed are not yet law.

As at 26 August 2026, the Bill has passed the Legislative Assembly. An amended version was subsequently passed by the Legislative Council on 14 August 2026, and the Assembly is now considering the Council's amendments. The Bill's current parliamentary status is therefore "Amendments under consideration".

Accordingly, vendors, purchasers and estate agents should continue to comply with the existing law unless and until the amendments are enacted and commence.

What is the current requirement for a Section 32 Vendor Statement?

Under the current Sale of Land Act 1962, a vendor must provide a purchaser with a compliant Section 32 Vendor Statement before the purchaser signs the Contract of Sale.

There is presently no general requirement that a Section 32 Vendor Statement must be available for a particular number of days before a property is advertised, auctioned or sold.

The proposed legislation would change this by requiring Section 32  Vendor Statements to be made available earlier in the sale and marketing campaign.

When would the Vendor Statement need to be available?

The Bill originally proposed a broad requirement for Section 32 Vendor Statements to be available at least 14 days before an auction or other fixed-date sale and, for other sales, at least 14 days before the Contract of Sale was signed.

That proposal has since been substantially amended by the Legislative Council.

Under the Bill in its presently amended form, the timing would depend upon the method of sale as follows:

1.      Private sales

Where a property is publicly advertised for sale other than by auction or fixed-date sale, the Section 32 Vendor Statement would need to be available from the 14th day after the property is first publicly advertised for sale.

However, if the property is sold within the first 14 days after advertising begins, the Section 32 Vendor Statement would only need to be available before the purchaser signs the Contract of Sale.

For example, if a property is advertised on 1 September and an acceptable offer is received on 5 September, the proposed legislation would not prevent the parties from entering into a contract on 5 September. The purchaser would still need to receive the Section 32 Vendor Statement before signing.

2.      Auctions and fixed-date sales

For a publicly advertised auction or fixed-date sale, the Section 32 Vendor Statement would generally need to be available 14 days before the first auction date or fixed date.

However, if the property is sold more than 14 days before the proposed auction or fixed date, the Section 32 Vendor Statement would only need to be available before the purchaser signs the Contract of Sale.

3.      Properties that are not publicly advertised

If a property is not publicly advertised for sale, the Section 32 Vendor Statement would continue to be required before the purchaser signs the Contract of Sale.

Does the proposal create a 14-day waiting period before a purchaser can sign?

No – at the time of writing based on the Bill in its current amended form.

This is an important distinction.

The original version of the Bill attracted attention because it could have effectively required a Vendor Statement to be available at least 14 days before many private sale contracts were entered into.

The Legislative Council amendments substantially modify that approach.

Under the present proposal, an early offer can still be accepted and a contract can still be signed during the first 14 days of a private sale and marketing campaign, provided the purchaser receives the Section 32 Vendor Statement before signing the Contract of Sale.

The practical effect of the proposed reform is therefore principally to require vendors to have their sale documentation prepared earlier during the sale and marketing campaign, rather than imposing a mandatory 14-day waiting period on purchasers.

What does "make available" mean?

The proposed legislation introduces a specific concept of making a Section 32 Vendor Statement "available".

A Section 32 Vendor Statement would be considered available where it can be provided in electronic or hard copy form at the request of any prospective purchaser.

This represents a shift from the current focus on providing the Section 32 Vendor Statement to the particular purchaser immediately before signing.

If enacted, the Section 32  Vendor Statement will increasingly form part of the documents that need to be ready during the sale and marketing campaign itself.

Vendors would also need to disclose changes to the Section 32 Vendor Statement

Another significant proposed change is a new obligation on vendors to give a purchaser written notice of any changes to the Section 32 Vendor Statement before the purchaser signs the contract.

This may become particularly important where a property is marketed for several weeks or months.

During that period, information contained in or attached to the Vendor Statement may change. This could include, for example:

• notices affecting the property;

• changes to title information;

• updated owners corporation information;

• changes affecting planning or building matters; or

• other information required to be disclosed under section 32.

If the reforms proceed, careful document management and version control will become increasingly important during a sale and marketing campaign.

What happens if the new requirements are not followed?

The Bill proposes amendments to the existing purchaser rescission provisions.

If enacted, a failure to make the Section 32 Vendor Statement available from the required time may give a purchaser rights under section 32K of the Sale of Land Act, subject to the qualifications and exceptions contained in that provision.

The Bill also proposes corresponding changes to the offence provisions relating to a failure to provide the required Section 32 Vendor Statement.

The proposed timing requirements should not be regarded as merely administrative. These are substantive statutory obligations, and non-compliance may give rise to a purchaser’s right to rescind the contract and expose the vendor to statutory penalties.

Proposed changes to early release of deposits

A significant change to the familiar section 27 early release of deposit procedure has also been proposed.

At present, section 27 of the Sale of Land Act provides a statutory process through which a vendor may seek release of the deposit before settlement.

The Bill proposes to repeal section 27 and replace it with provisions under which a deposit held by a lawyer, conveyancer or estate agent as stakeholder could not be released to the vendor before settlement unless the Contract of Sale itself contains an agreed condition permitting early release of the deposit.

If enacted, this will make the treatment of the deposit an issue that needs to be considered when the Contract of Sale is prepared and negotiated, rather than relying upon the existing statutory section 27 procedure after the contract has been entered into.

The Bill would also prevent an estate agent from retaining its commission, auction expenses or other entitlement from the deposit itself before settlement or rescission. However, under the Bill in its presently amended form, an agent could still receive those amounts directly from the vendor before settlement. The restriction is therefore directed to the use of deposit monies, rather than imposing an absolute prohibition on pre-settlement payment of an agent's commission. In practice, this may lead agents to review their sale authorities and potentially include terms requiring commission or other amounts to be paid by the vendor from separate funds before settlement. Whether this becomes standard industry practice remains to be seen.

What should vendors and estate agents do?

No immediate change to current practice is legally required because the Bill has not yet been enacted.

However, the proposed reforms demonstrate the increasing importance of preparing sale documents well before a property is placed on the market.

If the legislation proceeds, vendors and agents should expect to provide the vendor's lawyer or conveyancer with early notice of:

• the proposed date on which the property will first be advertised;

• whether the property will be sold privately, by auction or by another fixed-date sale process;

• the proposed auction or fixed sale date; and

• any changes affecting the property or information previously provided during the sale and marketing campaign.

For vendors considering a sale, engaging a lawyer early should reduce the risk of the Section 32 Vendor Statement not being available within the proposed statutory timeframe.

Contracts may also need to be reviewed to determine whether an appropriate provision dealing with the early release of the deposit should be included.

When could the changes commence?

The legislation remains before Parliament and may still be amended.

If the Section 32 Vendor Statement provisions are enacted substantially in their current form, they are proposed to commence on a date to be proclaimed, with a statutory commencement date of no later than 1 June 2027. The Bill also presently contains transitional provisions for contracts entered into within 28 days after commencement.

The proposed provisions relating to the release of deposits have a separate proposed forced commencement date of 1 July 2027 if they have not commenced earlier.

These dates should not be treated as confirmed commencement dates unless and until the Bill completes Parliament and receives Royal Assent.

How KCT Legal can assist

KCT Legal advises vendors, purchasers, investors and property professionals in relation to Victorian property transactions, including the preparation and review of Contracts of Sale and Section 32 Vendor Statements.

Vendors considering selling property should obtain advice sufficiently early to ensure that the required sale documentation can be prepared before the commencement of the sale and marketing campaign.

This article is current as at 26 August 2026 and provides general information only. The Consumer Legislation Amendment Bill 2026 has not yet become law and may be further amended before enactment. This article does not constitute legal advice.