Property lawyers should begin preparing for legislative changes soon to affect the property sector, says David McKenzie AccS (Prop), Principal Lawyer at FCW Lawyers.
McKenzie will outline the changes arising from the Consumer Legislation Amendment Bill 2026 (the Bill) and their implications for property lawyers at the LIV Property Law Conference, to be held at Rydges Melbourne and online on Thursday, 10 September 2026.
No More Last-Minute Vendor Statements
The omnibus Bill spans multiple consumer‑related and property‑related Acts, including the Sale of Land Act 1962, Residential Tenancies Act 1997, Owners Corporations Act 2006 and Domestic Building Contracts Act 1995.
One of the Bill’s most significant reforms is a requirement that section 32 vendor statements be made available at least 14 days before an auction or fixed‑date sale.
“This will be a significant change for property lawyers,” McKenzie says.
“The way that section 32 statements are driven is going to fundamentally change as a consequence of this legislation.”
Because prospective purchasers must be able to access the contract at least two weeks before a property sale, lawyers will no longer be able to prepare contracts at the last minute. As a result, lawyers will need to start managing client expectations today.
For regular clients, that may be less problematic.
“You can let them know well before the legislation comes in that it won’t be possible to do rushed contracts anymore,” McKenzie says.
However, the situation may be more complicated for one-off clients who approach a lawyer expecting a contract to be prepared just a few days before a sale.
“You will have to be quite firm with them and say, ‘We can’t do this and (still) comply with the law,” he says.
McKenzie acknowledges that this may create difficult situations for some sole practitioners who are keen to secure as much client business as possible.
“If the vendor says, ‘I absolutely need this done within three days,’ it’s going to be difficult for them to withstand the pressure and tell them they are going to have to wait 14 days.”
Onus Shifts to Purchasers to Access Section 32
McKenzie says another significant reform is the amendment requiring the vendor statement to be made available at least 14 days before the sale.
The change shifts the responsibility from vendors having to take positive steps to provide the statement to purchasers, who will now need to take active steps to access it.
“That means, if you are a lawyer and you get a contract, and it has a link to the vendor statement, you as the lawyer better make sure that you and the purchaser actually download the thing and look at it,” he says.
New Rules for Early Release of Deposits
Lawyers should also take note of proposed changes to section 27 of the Sale of Land Act, which currently allows a purchasers’ deposit to be released to the vendor before settlement.
“Estate agents like the option for early release of a deposit because it allows them to secure their fees,” McKenzie says.
“Owners like it because, in theory, it means they can put the deposit towards their next purchase deposit.”
However, the Bill would repeal that provision and replace it with a new clause, section 26A, under which a deposit could only be released before settlement if the contract specifically includes a term permitting this.
McKenzie says this will make it crucial for lawyers acting for purchasers to ensure their clients are aware that such a clause exists before signing it.
“Otherwise, your purchaser could turn around and say, ‘Why didn’t you tell me I’d signed something that commands that I release the deposit?’”
Evictions Now Subject to VCAT Challenges
At the conference, McKenzie will also discuss how changes to the Residential Tenancies Act introduced by the Bill will affect the sale of tenanted properties.
The removal of no-fault eviction under the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025 means rental providers can no longer issue a notice to vacate without a valid reason. Under the new Bill, renters who receive a notice to vacate, even with a stated reason, may challenge its validity by applying to the Victorian Civil and Administrative Tribunal (VCAT).
McKenzie says this will make it more difficult to evict tenants simply because the owner wants to sell the property.
“You now have to find the head of power in the legislation that allows you to evict somebody,” he says.
“It’s not just a matter of, ‘Here is 90 days and out you go.”
“It’s got to be tied to something, which can vary from wanting or having to move back in, doing renovations, a domestic violence situation or non-payment of rent. That something can then be challenged in VCAT.”
Other property-related changes arising from the Bill that McKenzie will discuss include amendments to section 18 of the Owners Corporations Act 2006, which governs when owners’ corporations can commence legal proceedings, and changes to section 34D of the Subdivision Act, which expand who may apply to VCAT to seek an order.
“This will be a significant change for property lawyers. The way that section 32 statements are driven is going to fundamentally change as a consequence of this legislation.”
To find out more and to register, visit LIV Property Law Conference.