Key points
- You need a signed Section 32 vendor statement and contract of sale ready before a buyer signs.
- Every seller needs an ATO clearance certificate before settlement, whatever the price, or the buyer must withhold 15% of the price.
- Your lender must be told early so your mortgage can be discharged at settlement.
- Errors in the Section 32 can let a buyer end the contract, so have it prepared carefully.
Before you list: prepare the Section 32 and contract
In Victoria, the seller must give buyers a signed Section 32 vendor statement before they sign a contract. It discloses the title, easements and covenants, planning zones and overlays, outgoings, building permits and other matters. Your lawyer or conveyancer prepares it with the contract of sale, ordering the searches and certificates needed.
Getting it right matters. If the statement is missing or contains false or incomplete information that matters, a buyer may be able to end the contract.
Apply for your ATO clearance certificate early
Since 1 January 2025, every Australian resident seller needs a foreign resident capital gains withholding clearance certificate from the ATO before settlement, regardless of the sale price. Without one, the buyer must withhold 15% of the purchase price and pay it to the ATO. You’d only get that money back through your tax return.
If there’s more than one owner, each owner needs a certificate. Certificates are valid for 12 months, and you can apply online before you sign a contract, so it’s sensible to apply as soon as you decide to sell.
Private sale or auction
For private sales, buyers usually have a three-business-day cooling-off period. There’s no cooling-off period at auction. Your lawyer can review any special conditions a buyer asks for, such as a finance clause or a longer settlement, before you accept an offer.
After the contract is signed
- Deposit: usually held in trust until settlement. You may be able to access it early if certain legal requirements are met.
- Mortgage discharge: tell your lender you’re selling and lodge a discharge request promptly. Lenders can take several weeks.
- Adjustments: rates, water and owners corporation fees are apportioned between you and the buyer at settlement.
- Buyer’s inspection: the buyer can usually inspect the property in the days before settlement. Leave it in the condition required by the contract, and leave behind any included fixtures and chattels.
Settlement day
Most Victorian settlements happen electronically. Your lender is paid out, the balance of the sale proceeds is paid to you, and the buyer becomes the registered owner. Once settlement is confirmed, the agent hands over the keys.
Tax and other considerations
Capital gains tax may apply if the property wasn’t your main residence for the whole time you owned it. Speak with your accountant before you sell. If you’re selling as part of a separation or an estate, get advice about how the sale fits into the wider matter.
How we can help
Asher Freeman Lawyers handles conveyancing for sellers across Victoria, including Section 32 statements, contracts and settlement, usually for a fixed fee.
Frequently asked questions
Do I need a clearance certificate if I'm an Australian resident?
Yes. Since 1 January 2025, Australian resident sellers need an ATO clearance certificate before settlement, whatever the price. Otherwise the buyer must withhold 15% of the price.
When should I get my Section 32 prepared?
Before your property is marketed, so it's ready to give to buyers before they sign a contract.
How long does settlement take when selling?
It's set in the contract and commonly ranges from 30 to 90 days. The buyer and seller agree on it when the contract is signed.
Do I need to attend settlement?
No. Most settlements happen electronically. We'll let you know once it's complete.
This article is general information about Victorian and Australian law as at 10 October 2026. It is not legal advice. Contact us for advice about your situation.
