Forms and Documents Required When Selling a House in Victoria

Selling a house in Victoria involves navigating a series of essential legal and financial processes. 

Being well-prepared with the necessary documentation not only ensures a smooth and compliant property transfer but also minimizes stress and potential delays. 

This guide outlines the key forms and documents required, providing you with a clear roadmap for a successful sale.

Navigating the complexities of property sales can be daunting. Our experienced conveyancers are here to guide you through every step of the process. Contact us today on (03) 9646 5913 for a free consultation and ensure a seamless and stress-free sale.

Essential Legal Documentation

When selling a property in Victoria, several essential legal documents form the foundation of the transaction. 

The most important document is the Vendor’s Statement (Section 32), which provides extensive details about the property’s condition, title, and any encumbrances.

Key Legal Documents Required:

• Vendor’s Statement (Section 32)
• Contract of Sale
• Certificate of Title & Plan of Subdivision
• Council & Planning Certificates
• Water and Encumbrance Certificates
• Building Permits and Compliance Certificates
• Owners Corporation/Body Corporate Certificates

Property Title and Ownership Records

Property title and ownership documentation forms the cornerstone of any real estate transaction in Victoria. 

The Certificate of Title, which serves as the official record of property ownership, must be current and accurately reflect all registered interests, including mortgages, caveats, and easements.

This document, maintained by the Land Titles Office, provides information about the property’s dimensions, location, and ownership history.

1. Certificate of Title: Contains the volume and folio number, property description, registered proprietor details, and any registered encumbrances
2. Title Search: Provides an extensive history of ownership transfers, mortgages, and other registered interests
3. Plan of Subdivision: Required for properties that are part of a subdivision, showing lot boundaries and common property areas
4. Transfer of Land: The document that facilitates the legal transfer of ownership from vendor to purchaser

When preparing these documents, vendors must confirm all information is current and accurate.

Any discrepancies or missing documentation can cause significant delays in the settlement process.

Working with a licensed conveyancer is recommended to confirm all title and ownership records meet legal requirements and facilitate a smooth property transfer.

Vendor Statement Requirements

Under Victorian law, sellers must provide potential buyers with a detailed Vendor’s Statement, also known as a Section 32 Statement, before entering into a contract of sale. 

This legally mandated document discloses critical information about the property and protects both parties by ensuring transparency in the transaction.

The Vendor’s Statement must include:

• Title details and property boundaries
• Any registered encumbrances, such as mortgages or caveats
• Planning restrictions and zoning information
• Building permits and certificates
• Services and utilities information
• Outstanding rates or charges
• Known defects or contamination issues

A properly prepared Vendor’s Statement requires supporting documentation from various authorities, including:

1. Current Certificate of Title
2. Council rates certificate
3. Water rates information
4. Land tax certificate
5. Building approval certificates
6. Owner’s Corporation documents (if applicable)

Failure to provide an accurate and complete Vendor’s Statement can result in serious consequences, including the buyer’s right to terminate the contract even after signing.

Additionally, sellers may face legal action if they knowingly provide false information or omit significant facts about the property.

Building and Planning Certificates

Significant documentation for selling a house in Victoria includes obtaining the relevant building and planning certificates, which provide important information about the property’s compliance with local regulations and development history.

These certificates are a key part of the disclosure requirements and help protect both sellers and buyers during the transaction process.

1. Building Permits and Certificates of Occupancy: Documents that verify all construction work meets building regulations and standards
2. Planning Permits: Official approvals for any modifications, extensions, or changes to the property’s use
3. Building Compliance Certificates: Verification that specific building elements meet relevant Australian Standards
4. Final Inspection Certificates: Confirmation that completed works align with approved plans and permits

The local council maintains records of these certificates, and sellers (or their conveyancer) must obtain current copies through formal application processes.

A licensed building surveyor or conveyancer can assist in acquiring the necessary documentation, particularly for properties with complex building histories or recent renovations.

It is important to note that missing or incomplete building and planning certificates may delay the sale process or potentially affect the property’s value, making thorough documentation gathering a priority early in the selling process.

Financial and Tax Documents

This section details the financial and tax-related documents required for the property sale process.

These documents provide crucial information to both the buyer and seller, ensuring transparency and facilitating accurate financial settlement.

Essential Financial Documents Required

• Current Mortgage Statement
• Land Tax Certificate
• Council Rates Certificate
• Water Rates Statement
• Bank Account Details for Settlement Proceeds
• Body Corporate Fee Statements (for apartments/units)

Current Mortgage Statement: 

This statement, obtained from your lender, shows the outstanding balance on your mortgage. 

This is essential for calculating the payout figure required at settlement to discharge the mortgage. It confirms the exact amount needed to clear the debt, ensuring the transfer of clear title to the buyer.

Land Tax Certificate:

Issued by the State Revenue Office, this certificate confirms whether any land tax is owing on the property. It details any outstanding amounts or exemptions, which need to be addressed at settlement. This prevents the buyer from inheriting any unpaid land tax liabilities.

Council Rates Certificate: 

This certificate, obtained from the local council, provides a history of council rates paid on the property. 

It shows any outstanding amounts, which are adjusted between the buyer and seller at settlement. This ensures both parties pay their fair share of rates up to the settlement date.

Water Rates Statement

This statement, obtained from the relevant water authority, details water usage and any outstanding water charges. Similar to council rates, these charges are adjusted at settlement to ensure fair apportionment between the buyer and seller.

Bank Account Details for Settlement Proceeds

Providing your bank account details to your conveyancer is crucial for receiving the sale proceeds after settlement. This ensures the funds are transferred securely and efficiently to your nominated account.

Body Corporate Fee Statements (for apartments/units):

 If the property is part of an Owners Corporation (body corporate), statements outlining any outstanding fees or levies are required. These are adjusted at settlement, similar to council and water rates.

Tax Compliance Documents

• Australian Tax Office (ATO) Clearance Certificate 
• Foreign Investment Review Board (FIRB) Approval (if applicable
• Proof of GST Registration (for commercial properties)
• Capital Gains Tax (CGT) Records (for investment properties)
• Depreciation Schedules (for investment properties)
• Rental Income Statements and Tenancy Agreements (for investment properties) 

Australian Tax Office (ATO) Clearance Certificate 

This certificate is now mandatory for all properties sold in Victoria.   It confirms that the seller is not a foreign resident for tax purposes. This prevents the buyer from being liable for withholding tax on the purchase price.

Foreign Investment Review Board (FIRB) Approval (if applicable):

If the seller is a foreign investor, FIRB approval may be required before the sale can proceed. This ensures compliance with foreign investment regulations in Australia.

Proof of GST Registration (for commercial properties): 

If the property is a commercial property and the seller is registered for GST, documentation related to GST obligations will be necessary. This clarifies GST implications for the transaction.

Capital Gains Tax (CGT) Records (for investment properties): 

While not required at the time of sale, sellers of investment properties must maintain accurate records for CGT purposes. 

These records will be needed when filing their tax return. This includes purchase contracts, sale contracts, and records of any capital improvements made to the property.

Depreciation Schedules (for investment properties)

If the property has been used as an investment property, depreciation schedules detailing deductions claimed for depreciable assets are relevant for CGT calculations.

Rental Income Statements and Tenancy Agreements (for investment properties) 

These documents provide a record of rental income received and the terms of any current tenancies. They are important for calculating CGT and for informing the buyer about existing lease agreements.

Additional Financial Records (Helpful but not always mandatory):

• Insurance Documentation and Payment History: While not always mandatory, having records of building and contents insurance can be helpful for both the buyer and seller.
• Utility Bills and Payment Records: Similar to insurance, these can be useful for establishing usage patterns and costs.
• Evidence of any Government Grants Received: If the property has benefited from any government grants, documentation relating to these grants should be provided.
• Documentation of Recent Valuations or Appraisals: While not mandatory, recent valuations can provide additional information about the property’s market value.

Streamline Your Victorian Property Sale

Selling a property in Victoria requires careful attention to detail and thorough preparation of all necessary documentation. By understanding these requirements and seeking professional guidance when needed, you can ensure a successful and stress-free sale. 

Our team of experienced conveyancers is ready to assist you every step of the way. Contact us today on (03) 9646 5913 for a free consultation.