Buying or selling property in Victoria has always required close attention to detail. Still, since 1 July 2026, the regulatory landscape has become noticeably more complex, especially for residential, commercial, and vacant land transactions. These changes directly affect your obligations and risks during property transactions. From updated property tax thresholds to strict new building work disclosures, non-compliance can allow a purchaser to terminate a contract before settlement. Here is a breakdown of what has changed and why having a dedicated legal partner like Flint Lawyers is more critical than ever, so you can feel confident navigating these updates.
Vacant Residential Land Tax (VRLT) Expansion
State tax updates have broadened the scope of the VRLT, increasing holding costs for certain vendors prior to settlement. Vendors holding undeveloped residential land in metropolitan Melbourne for over five years may now trigger the tax. Furthermore, the tax now applies statewide to properties that have been uninhabitable or under construction or renovation for more than two years.
New Legal Risks for Vendors Who Have Performed Building Works
Minimise the risk that your contract of sale is terminated at any time before settlement with the help of Flint Lawyers so that you can feel supported and assured throughout the process.
If you have personally built, altered, or extended a building on your property—or even if you managed and arranged for contractors to perform cosmetic or structural works—you may legally be classified as an “owner-builder” under Section 137B of the Building Act 1993 (Vic).
Updated regulations that intersect with Section 32 of the Sale of Land Act 1962 (Vic) mandate comprehensive disclosures to protect purchasers. If you are selling a property within the “prescribed period” after completing these works, you are subject to strict mandatory reporting requirements.
To stay compliant, vendors must ensure the following are attached to their Section 32 vendor statement:
- A Defect Condition Report: You must obtain a condition report from a prescribed building practitioner detailing the works and any defects. Crucially, this report must be less than six months old at the time of sale.
- Domestic Building Insurance (DBI): If the domestic building work exceeds $20,000, the vendor must obtain and explicitly disclose DBI. This protects the buyer if the builder dies, disappears, or becomes insolvent.
The scope of these updates is extensive, and failure to disclose the required insurance details and building reports may result in rescission of the contract and, in the worst-case scenario, penalties or legal disputes. Knowing these changes helps protect your sale, and Flint Lawyers can assist you in ensuring full compliance to avoid risks and leverage your position during due diligence.
Flint Lawyers can guide you through these upcoming changes to ensure compliance and peace of mind.
Why Flint Lawyers is Your Right Partner
At Flint Lawyers, we are experienced in navigating these regulatory shifts for our Victorian clients, including vendors, trustees, and legal professionals. Our expertise ensures your conveyancing process is compliant with federal and state laws, reducing risks and streamlining your transactions. Engaging us provides peace of mind, knowing your specific legal obligations are managed effectively from contract signing to settlement.
We ensure that your Section 32 statements are as enforceable as possible, your identity verifications are handled securely and efficiently, and your exposure to regulatory risk is minimised from the moment you sign a contract until settlement has occurred.