What Victoria's Proposed Property Law Reforms Mean for Buyers, Sellers and Agents

Published by Dott & Crossitt | June 2026

The Victorian Government introduced the Consumer Legislation Amendment Bill 2026 into the Legislative Assembly on 3 June 2026, with the second reading speech delivered the following day. If passed in its current form, the Bill would represent the most significant shake-up of residential property transaction law in Victoria in years.

This is still a Bill — not yet law — so the final form and commencement dates will depend on how it progresses through Parliament. But the proposed changes are significant enough that buyers, sellers, agents and conveyancers should start getting across them now.

Here's what's on the table.

Reserve Prices Must Be Disclosed Before Auction

Under the proposed changes, agents would be required to disclose the seller's reserve price at least 7 days before an auction or fixed-date sale.

This is a meaningful shift. Currently, reserve prices are typically revealed only at the auction itself — if at all — leaving buyers to make high-stakes decisions with limited information. Earlier disclosure would give buyers more time to assess whether a property is genuinely within their budget before committing to due diligence costs, building inspections and the emotional investment that comes with auction preparation.

For sellers and agents, it introduces a new obligation to have a confirmed reserve set well in advance, which may change how pre-auction negotiations and pricing conversations are managed.

Section 32 Vendor Statements: A New 14-Day Timeframe

The Bill proposes that Section 32 vendor statements must be available to buyers at least 14 days before an auction or sale.

In practice, well-prepared vendors and their conveyancers are often already ready more than 14 days out — so for many transactions, this may simply codify existing good practice rather than create a material change. That said, making it a statutory requirement provides buyers with a clearer legal entitlement to adequate disclosure time and may prompt tighter discipline in the cases where documentation has been delivered late.

A New Property Price Statement Replaces the Statement of Information

The current Statement of Information — the document agents must provide to buyers setting out indicative prices and comparable sales — would be replaced by an expanded Property Price Statement.

The proposed new document would include stronger requirements around:

• Indicative selling prices
• Comparable sales information
• Publication of the final sale price once a contract becomes unconditional

The last point is particularly notable. Requiring public disclosure of final prices after contracts go unconditional would significantly increase transparency in the Victorian market, giving buyers, sellers and the broader community better real-time data on what properties are actually selling for — not just what's being quoted.

Section 27 Deposit Release: Out With the Statutory Mechanism

One of the more technical but consequential changes is the proposed abolition of Section 27 of the Sale of Land Act — the provision that currently allows vendors to access deposit funds before settlement under certain conditions.

If the Bill passes, that statutory early release mechanism would disappear entirely. Parties who want to arrange early release of deposit funds would still be able to do so, but it would need to be agreed contractually rather than falling back on the statute.

For vendors who have relied on Section 27 to fund a bridging purchase or cover pre-settlement costs, this will require more careful planning and clearer contractual arrangements. Buyers' solicitors and conveyancers may also see more negotiation around deposit release terms as a result.

Stronger Enforcement Powers Over Trust Accounts

The Bill would give the Business Licensing Authority new powers to suspend the licences of estate agents and conveyancers who fail to comply with trust account audit requirements.

Trust account obligations already exist, but the enforcement toolkit has been relatively limited. Licence suspension is a serious consequence, and this change signals a clear intention to hold agents and conveyancers to a higher standard of compliance. For practitioners, the message is straightforward: trust account audits need to be taken seriously.

Owners Corporation Reforms

The Bill also includes reforms to owners corporation law, with a new framework for payment plans and expanded access to VCAT for certain subdivision-related disputes.

These changes are likely to be welcomed by lot owners who have faced difficulties enforcing payment obligations or resolving disputes under the current framework.

What Happens Next?

The Bill has been introduced and the second reading speech delivered, but it still needs to pass through both houses of Parliament before becoming law. Amendments are possible along the way, and commencement dates will be confirmed once — and if — the Bill receives Royal Assent.

We'll continue to watch the progress of this legislation closely. If you have questions about how these changes might affect an upcoming purchase, sale or auction, get in touch with the team at Dott & Crossitt.

Dott & Crossitt provides conveyancing and property transaction services. This article is general information only and does not constitute legal advice. Please contact us to discuss your specific circumstances.

www.dottandcrossitt.com.au

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