10 Key Changes to Victoria’s Contract of Sale of Land Laws – September 2025
If you’re planning to buy or sell property in Victoria, there’s been an important update to the Contract of Sale of Land laws you should know about.
In September 2025, the Real Estate Institute of Victoria (REIV) and the Law Institute of Victoria (LIV) released a new version of the Contract of Sale of Land — the standard document used for most property transactions in the state.
While the contract looks similar to the old one, there are several key changes that could affect how your sale or purchase is handled. Here’s what’s changed and what it means for you.
1. More Flexible Signing Options
The new contract now includes separate signing sections for each person involved in the transaction.
What this means for you:
If there are multiple sellers, buyers, or company representatives signing, each person now has their own section to sign correctly. This makes things clearer and helps avoid issues later on if one person forgets to sign in the right place.
2. Extra Time for Off-the-Plan Settlements
If you’re buying off the plan (a property that hasn’t been built yet), you’ll now have 21 days to settle after the developer gives notice that the property is ready — up from the previous 14 days.
What this means for you:
Buyers get a bit more breathing room to finalise finance and organise settlement. Sellers (developers) should keep the longer timeframe in mind when planning cashflow.
3. Domestic Building Insurance Rules Updated
The rules around domestic building insurance — required for most new homes or major renovations — have been clarified. Sellers must now give the buyer a copy of the insurance certificate at least 14 days before settlement (previously 21 days).
What this means for you:
If you’re selling a newly built home, make sure your builder provides the correct insurance certificate on time.
If you’re buying, your lawyer or conveyancer should check that you receive it before settlement.
4. Early Release of Deposit Removed
The section that used to deal with the early release of the deposit (before settlement) has been removed.
What this means for you:
The deposit can still be released early in some situations, but it’s now handled under Victorian law rather than through the contract itself. Your lawyer or conveyancer will guide you through this process if it comes up.
5. Updated Rules for Building and Pest Reports
The contract now sets clearer standards for building and pest inspections.
What this means for you:
Building reports must be done by a qualified professional (builder, surveyor, inspector, or architect) and meet Australian Standards.
A buyer can only withdraw from the contract if the report finds a major defect — not just minor issues or wear and tear.
Pest reports must also meet Australian Standards, though the contract no longer lists who can complete them.
This ensures reports are consistent and reliable for both buyers and sellers.
6. Land Tax and Property Value Thresholds
The new contract reflects changes in how land tax and commercial and industrial property tax (CIPT) are handled.
What this means for you:
If the property sells for less than $10.4 million (including GST), the seller can’t pass land tax or CIPT onto the buyer.
Your legal adviser will confirm whether this affects your property based on its sale price.
7. Clearer Settlement and Notice Requirements
There are updates to how settlement times and official notices (like windfall gains tax notices) are handled.
What this means for you:
Electronic settlements (such as via PEXA) now have more flexibility in timing.
Sellers must also comply with new notice requirements around certain taxes — your lawyer will make sure the right paperwork is exchanged.
8. Damage Before Settlement
The clause that let sellers keep up to $5,000 from the sale price for small property damage before settlement has been removed.
What this means for you:
If something happens to the property between signing and settlement (like a broken window or minor damage), the parties will now rely on insurance or negotiation, rather than the old automatic $5,000 deduction.
9. Interest on Late Settlement Reduced
If one party delays settlement, the interest rate for late payment is now based only on the official Victorian penalty rate — the extra 2% loading has been removed.
What this means for you:
If settlement is delayed (for example, due to a finance or paperwork issue), the penalty costs will likely be a little lower than before.
10. Vendor’s Rights After Default
The seller (vendor) now has broader rights if the buyer doesn’t meet their obligations or walks away from the contract.
What this means for you:
It’s even more important to meet your settlement deadlines and other obligations — walking away from a signed contract can have serious financial consequences.
What You Should Do
Whether you’re buying or selling, these updates show why it’s crucial to have an experienced property lawyer or conveyancer review your contract before you sign.
Here are our top tips:
- Always make sure you’re using the latest version of the contract.
- Ask your lawyer to explain any new clauses in plain English.
- Don’t sign anything until you fully understand your rights and obligations.
- Plan ahead for insurance, inspection, and settlement timelines.
Need Help Navigating the Changes?
At Aintree Group Legal, we stay up to date with all contract and legislation changes so our clients don’t have to.
If you’re buying or selling property, our experienced legal team can review your contract, explain your options clearly, and help you avoid costly surprises. We offer comprehensive property law and conveyancing services to support you through every stage of the process.
Get in touch with our team today to ensure your next move is protected and stress-free.
