Property Settlement in Victoria: Timelines, Costs, and What to Expect

Buying property in Victoria involves a settlement process with several features unique to the state, most notably the Section 32 vendor statement, specific cooling-off rules, and a strong emphasis on electronic settlement through PEXA. If you are purchasing an investment property or your first home in Melbourne or regional Victoria, understanding the VIC-specific settlement process will help you avoid surprises and keep the transaction on track.

For a general overview of how settlement works across all Australian states, see our national guide on property settlement in Australia.

Settlement Period in Victoria

The standard settlement period in Victoria is 30 to 60 days from the date of contract signing. The most common period is 60 days, though 30-day settlements are not unusual, particularly in a competitive market where sellers prefer a faster close.

The settlement period is negotiated between buyer and seller before the contract is signed. As a buyer, consider the following when choosing a settlement period:

30 days suits buyers who already have unconditional finance approval and are ready to move quickly. It can make your offer more attractive to sellers.
60 days is the standard and gives you adequate time to arrange finance, complete due diligence, and organise insurance.
90+ days may be requested if you need to sell another property first or if there are complex finance arrangements. Sellers may be less willing to accept longer periods.

The settlement date is specified in the contract. If either party cannot settle on the agreed date, the other party can serve a notice to complete, typically giving 14 days to settle before the contract can be rescinded.

The Section 32 Vendor Statement

The Section 32 vendor statement is unique to Victoria. It is named after Section 32 of the Sale of Land Act 1962 (Vic) and is a legal document that the seller must provide to the buyer before the contract of sale is signed.

What It Contains

The Section 32 must disclose:

Title details including the volume and folio reference, registered proprietor, and any encumbrances (mortgages, caveats, easements).
Planning information including the zoning of the land and any overlays (heritage, environmental, flood, bushfire).
Building permits issued in the last seven years.
Owner-builder work if the vendor carried out any building work as an owner-builder.
Outgoings including council rates, water rates, land tax, and owners corporation (body corporate) fees if applicable.
Services connected to the property (water, gas, electricity, sewerage).
Any notices or orders from government authorities affecting the property.
Road widening or road closures that may affect the property.
Owners corporation details including the certificate, rules, minutes, and financial statements if the property is part of a strata or community scheme.

Why It Matters

The Section 32 is your primary source of information about the property's legal status. Your conveyancer or solicitor should review it carefully before you sign the contract. Common issues found in Section 32 statements include:

Easements that restrict what you can build on the land.
Caveats from other parties claiming an interest in the property.
Outstanding building permits that may indicate incomplete work.
Owner-builder work where the statutory warranty period has not expired, potentially leaving you exposed if defects emerge.
High owners corporation fees for apartment or townhouse purchases.
Planning overlays such as heritage or vegetation overlays that restrict renovations or development.

If the Section 32 is defective (missing required information or containing incorrect information), the buyer may have the right to rescind the contract. This is a powerful protection, but it must be exercised within certain timeframes and your conveyancer will advise on this.

Cooling-Off Period

Victoria provides a 3 business day cooling-off period for private treaty sales (where the buyer purchases through negotiation, not at auction). During this period, the buyer can withdraw from the contract without needing to provide a reason.

Key Rules

The cooling-off period starts when the buyer signs the contract and ends at 5:00 PM on the third clear business day after signing.
If you withdraw during the cooling-off period, you forfeit $100 or 0.2% of the purchase price (whichever is greater) to the vendor. On a $750,000 property, that is $1,500.
No cooling-off applies at auction. If you buy at auction, the contract is immediately binding. There is no opportunity to withdraw without significant penalty.
No cooling-off if you waived it. Buyers can waive the cooling-off period before signing the contract, which is sometimes done in competitive markets to make an offer more attractive. Your conveyancer must provide a certificate confirming you have been advised of the consequences.
Section 32 delivery matters. If the Section 32 was not provided at least three business days before the auction or before the buyer signed the contract, the cooling-off period may be extended or the buyer may have additional rights.

Practical Advice

Use the cooling-off period to finalise your due diligence. Arrange building and pest inspections, confirm your finance pre-approval is on track, review the Section 32 with your conveyancer, and check for any outstanding issues. If something material comes to light during this period, you can withdraw at a relatively low cost.

For auction purchases, complete all your due diligence before auction day. Once the hammer falls, you are committed. See our guide on property due diligence for a comprehensive checklist.

PEXA Electronic Settlement

All property settlements in Victoria are conducted electronically through PEXA (Property Exchange Australia). Paper-based settlements were phased out in Victoria in 2018, and all conveyancers and lenders are required to use the PEXA platform.

How PEXA Works

Workspace created. Your conveyancer creates a PEXA workspace for the transaction. All parties (buyer's conveyancer, seller's conveyancer, buyer's lender, seller's lender) are invited to the workspace.
Documents prepared. The transfer of land document is prepared electronically within PEXA. Your conveyancer verifies your identity and lodges the transfer details.
Financial settlement. On settlement day, PEXA coordinates the simultaneous exchange of funds and title. Your lender transfers the loan funds, you transfer your deposit balance, stamp duty is paid to the State Revenue Office, and the seller receives the net proceeds, all within the PEXA system.
Title transfer. Once the financial settlement is complete, PEXA automatically lodges the transfer of title with Land Use Victoria (the land titles office). You become the registered proprietor.
Confirmation. All parties receive confirmation that settlement has occurred. Your conveyancer notifies you, and you can collect the keys from the real estate agent.

Settlement time: PEXA settlements typically occur between 10:00 AM and 4:00 PM on the settlement date. Your conveyancer will confirm the exact timing closer to the day.

Advantages of PEXA

Speed. Electronic settlement is faster and more reliable than the old paper-based system.
Security. Reduced risk of fraudulent title transfers, as PEXA includes identity verification checks.
Transparency. All parties can see the status of the settlement in real time.
Simultaneous exchange. Funds and title transfer happen at the same moment, eliminating the gap that existed with paper settlements.

Conveyancer and Solicitor Costs

You will need either a conveyancer or a property solicitor to handle the settlement process on your behalf. In Victoria, the typical costs are:

| Service | Typical Cost | |---|---| | Conveyancer (standard purchase) | $800 - $1,500 | | Property solicitor (standard purchase) | $1,200 - $2,500 | | Title search | $20 - $30 | | Planning certificate | $50 - $80 | | Council rate and water searches | $50 - $100 | | PEXA fees (buyer contribution) | $100 - $150 | | Land tax certificate | $30 - $50 | | Total conveyancing costs | $1,050 - $1,910 |

Conveyancer vs solicitor: A licensed conveyancer handles the standard legal process of transferring property. A property solicitor can do the same work but can also provide legal advice on contract terms, disputes, and more complex issues. For straightforward purchases, a conveyancer is typically sufficient and more cost-effective. For complex purchases (off-the-plan, commercial, properties with legal issues), a solicitor may be the better choice.

When to engage: Appoint your conveyancer or solicitor before you start making offers. They should review the Section 32 and contract of sale before you sign anything.

What Happens on Settlement Day

Settlement day in Victoria follows a standard process:

Morning (8:00 - 10:00 AM): Your conveyancer confirms with the seller's conveyancer that all documents are in order and the PEXA workspace is ready. Your lender confirms that loan funds will be available for settlement.

Mid-morning to early afternoon (10:00 AM - 2:00 PM): The PEXA settlement is scheduled for a specific time. All parties must be logged in and ready. When the settlement is initiated, the following happens simultaneously:

Your lender releases the loan funds into the PEXA workspace.
Your deposit (held in the real estate agent's trust account) is directed to the settlement.
Stamp duty is paid to the State Revenue Office of Victoria.
The seller's mortgage (if any) is discharged from the title.
The net proceeds are paid to the seller.
The title is transferred into your name (or your name and your lender's name if you have a mortgage).

Afternoon (2:00 - 5:00 PM): Your conveyancer confirms settlement is complete. You collect keys from the real estate agent. The property is legally yours.

For investment properties: If the property has a sitting tenant, you do not collect keys in the same way. The existing tenancy continues under the same terms, and the property manager (if you have appointed one) takes over management from the settlement date.

Settlement Adjustments

Settlement adjustments ensure that ongoing costs are shared fairly between the buyer and seller based on who owns the property for which portion of the billing period.

Council Rates

Council rates are usually billed annually or quarterly. If the seller has prepaid rates beyond the settlement date, you reimburse the seller for the portion covering your period of ownership. If the seller has not yet paid rates for the current period, they reimburse you.

Water Rates and Usage

Water rates in Victoria have a fixed service charge and a usage charge. The service charge is adjusted at settlement similar to council rates. Usage charges up to the settlement date are the seller's responsibility.

Owners Corporation Fees

For apartments, townhouses, or any property in a strata scheme, owners corporation (body corporate) fees are adjusted at settlement. Quarterly fees are apportioned based on the settlement date.

Land Tax

Land tax adjustments can be complex. In Victoria, the seller is generally responsible for land tax for the current calendar year if they owned the property on 31 December of the previous year. However, the contract of sale may include a special condition adjusting land tax at settlement. Your conveyancer will advise on this.

What Is Different About Apartment and Unit Settlement

Settling on an apartment or unit in Victoria is similar to settling on a house, with a few additional considerations:

Owners corporation certificate. The Section 32 must include an owners corporation certificate, which provides details of the body corporate including financial position, any pending litigation, and the annual fees. Review this carefully. A body corporate with low reserves, high fees, or pending legal action is a red flag. For more detail, see our guide on body corporate and strata fees.

Common property inspections. Inspect the common areas (hallways, car park, lifts, gardens) in addition to the unit itself. Deferred maintenance in common areas will eventually result in special levies.

Building defects. For newer apartment buildings, check whether there are any outstanding building defect claims. The owners corporation may be pursuing the developer for rectification works. This can affect the value and livability of the property.

Car parking and storage. Confirm that your allocated car space and storage cage (if any) are included in the contract and shown on the plan of subdivision. These are sometimes on separate titles.

Common Delays and How to Avoid Them

Finance approval delays. This is the most common cause of settlement delays. To minimise risk: get unconditional approval (not just pre-approval) as early as possible, respond promptly to any lender requests for additional information, and choose a settlement period that gives your lender enough time.

Section 32 issues. If your conveyancer identifies problems with the Section 32 after you have signed, negotiations to rectify the issue can delay settlement. Mitigate this by having your conveyancer review the Section 32 thoroughly before you sign the contract.

Building and pest inspection issues. If your inspection reveals significant problems, you may need to negotiate repairs or a price reduction, which takes time. Book inspections during the cooling-off period or before auction to avoid delays.

PEXA technical issues. While rare, PEXA can experience outages or technical delays. These are usually resolved within hours, but they can push settlement to the following business day.

Missing or incorrect documents. Ensure your conveyancer has all required documents (identification, loan documents, transfer forms) well before settlement day. Last-minute document issues are avoidable with good preparation.

Seller's delays. Sometimes the seller is not ready to settle on time, perhaps because they are buying another property and that settlement is delayed. Your conveyancer can serve a notice to complete, but this adds time and stress. There is limited ability to prevent this, but choosing a vendor with a clear settlement plan (e.g., not buying simultaneously) reduces the risk.

Key Takeaways

Victoria's standard settlement period is 30 to 60 days, with 60 days being most common.
The Section 32 vendor statement is a VIC-specific legal requirement. Have your conveyancer review it before you sign the contract.
Cooling-off is 3 business days for private treaty sales. No cooling-off applies at auction.
All Victorian settlements are conducted electronically through PEXA.
Conveyancing costs range from $800 to $1,500 for a licensed conveyancer, plus search and PEXA fees.
Settlement adjustments cover council rates, water rates, owners corporation fees, and land tax.
The most common cause of delay is finance approval. Get unconditional approval as early as possible.