Changes are coming to the Victorian property industry. There is widespread community frustration at the housing status quo. While there are good arguments that the housing crisis is a symptom of inequality, rather than an underlying lack of property, the government is using public outrage to push through new laws which will greatly impact the way property is bought and sold in Victoria. There are some excellent amendments in the works, and there are others that are a bit baffling. We’ll see what the final outcome of the Consumer Legislation Amendment Bill 2026 (Vic) is once it passes both Houses.
Agents will be required to publish a reserve price a week before the auction, to stop wasting everyone’s time.
Underquoting is our national sport. Any price shown on an auction campaign is at least 10% under the actual price. In high demand locations, this may be closer to 20%. I rent in Fitzroy and see this story every Saturday:
If you doubt me, try making a pre-auction offer within the range. Last year a client asked me to call an agent and put in an offer 10% above the top of the range, and the agent laughed and said ”no, I’ve spoken to your client about this before, there’s no way the property is being sold for that low”. While such activity is supposedly illegal, the rules are rarely enforced.
Once the new laws are passed, agents must publish the price the Vendor will actually accept 7 days before the auction. Potential bidders misled by false price guides can then do something more productive with their weekend.
Agents will no longer be able to withhold their commission and expenses from the Deposit, and Section 27 will be abolished
Agents will often push for an early Deposit release (“Section 27”) so they can get paid. Going forward, they will no longer be able to withhold an amount equal to their commission and marketing costs. I expect there will be much less agent pressure to have Purchasers sign a Section 27. This change makes sense and I support it.
What makes less sense is abolishing Section 27 of the Sale of Land Act, which is well understood by practitioners with plenty of case law clarifying it. Deposit releases will be allowed by Special Condition, but this will add uncertainty and create risks for both buyers and sellers unnecessarily. I don’t always agree with the REIV, however their assertion that it will make auctions hazardous for buyers is spot on – buyers may be forced to accept the deposit release terms that sellers dictate.
Sections 32 Vendor Statements to be made available 14 days prior to sale
Currently, buyers must be given a Section 32 Vendor’s Statement before signing the Contract. The proposed change will require the Vendor Statement to be made available upon request 14 days prior to the Contract being signed, or the Auction date (depending). Buyers and sellers, despite reaching an agreement, would have to wait for a period before the Contract could be signed. This is a change that is perhaps the most perplexing.
Fortunately, the Legislative Council has made amendments to this section to create an off-market exemption, among other amendments. Watch this space.
If you’re buying, selling, or anything in between, email Jack at jack.nevile@nevile.com.au
