Consumer Legislation Amendment Bill 2026: What it could mean for property sales and rentals

The Bill proposes that the seller’s reserve price must be published by the real estate agent at least seven days before an auction or fixed-date sale.

This is a major shift from current practice where the reserve price is not disclosed until auction day and often only once bidding commences.

This will assist buyers so they are not wasting their time due to under quoting and will likely mean a new auction day strategy for buyers and sellers. However, buyers still need to do all their pre purchase due diligence on a property on which they intend to bid.

With the name change from Statement of Information (SOI) to Property Price Statement (PPS), the PPS will require the following:

• An indicative selling price to be clearly displayed on internet advertisements;
• Real estate agents to include the sale price of a residential property within 7 days of the sale going unconditional;
• The PPS must be published on a free-to-access internet site for at least 18 months after the sale of the property;
• Real estate agents must include key features of the property being sold and key features of each comparable property on the PPS.

There is also a proposal that, within 7 days of the property sale going unconditional, agents must provide sale information (including sale price and key features) to the Director of Consumer Affairs Victoria and allow this information to be published by the Director.

These changes intend to provide greater market transparency with access to sales data to compare like-for-like sales, particularly in tightly held suburbs where comparable values can be difficult.

Importantly though, these are transparency reforms, not a ‘price guarantee’.

A section 32 (vendor disclosure statement) contains all the legally required information about the property, including information that affects the property’s value, condition and a buyer’s decision to proceed.

The Bill proposes to codify this within the Sale of Land Act 1962 so that the section 32 statement:

• is to be made available at least 14 days before an auction or fixed date sale, or
• at least 14 days before a contract is signed.

For buyers, earlier access to a section 32 will help give them time to get advice and make enquiries about the property.

This places more pressure on conveyancers and property lawyers to ensure the disclosure documentation is prepared early and kept updated throughout the campaign!

The Bill seeks to repeal section 27, removing the statutory mechanism that currently supports early release of deposit monies (in certain circumstances).

If repealed, parties would need to rely on contractual arrangements to authorise an early release of deposit monies prior to settlement.

In addition, the Bill proposes that real estate agents will be prohibited from taking commissions from deposits before settlement.

This is a key structural change to how sale proceeds and commissions are handled between contract signing and settlement and will likely impact upon:

• how sellers manage cashflow expectations; and
• how contracts are negotiated (particularly around deposit handling).

Under the proposed changes, conveyancers and real estate agents could have their licences suspended by the Business Licencing Authority if they fail to comply with the trust account audit requirements.  This proposal calls for systems, diarised audit dates, and prompt rectification of any issues.

The Bill also proposes reforms affecting residential renting, including:

Early termination compensation (VCAT)

For early termination of a residential rental agreement, the amount of compensation that may be ordered by VCAT would be limited.

Direct bond repayments to the RTBA

The Residential Tenancies Bond Authority (RTBA) would receive bond payment directly from renters, rather than via the rental provider.

This could streamline bond handling and reduce risk for renters by reducing reliance on intermediaries.

As the bill has not yet passed, no action is required at this stage, however, it is essential to monitor:

• any amendments made during the parliamentary process;
• the final form of any Act that results; and
• commencement dates and transitional arrangements.

The changes are clearly aimed at greater transparency and earlier disclosure, with higher penalties for breaches.

Sanicki Lawyers and Western Conveyancing have highly experienced conveyancing teams that can assist with property transactions. Whether you are buying, selling, or navigating compliance as a part of a broader property matter, we are here to assist.

Call us on (03) 9510 9888 to arrange a consultation.