What your conveyancer
does when you sell

When you sell, most of the attention goes to the agent, the photos and the price. Behind that, your conveyancer is preparing the legal documents the sale depends on, clearing the way with your bank, and making sure the money lands in your account on settlement day. Here's what that involves.

1. Before you list: the contract and Section 32

In Victoria, a property can't be properly marketed without a contract of sale and a vendor's statement, known as the Section 32. Your conveyancer orders the title, plan and property certificates, and uses them to prepare both documents. The Section 32 must disclose things like easements, covenants, planning controls, rates and any notices affecting the land. If something is left out or wrong, a buyer may be able to end the contract later.

That's why we suggest starting this work before the agent is booked. Our article on preparing your vendor statement early explains why it keeps a campaign on schedule.

2. Setting the terms of sale

Your conveyancer works with you and the agent on the terms that go into the contract: the deposit, the settlement period, and any special conditions, such as a longer settlement if you need time to buy your next home. Getting these right at the start avoids awkward negotiations once a buyer is found.

3. When a buyer signs

Once the contract is signed, your conveyancer confirms the key dates, watches the buyer's cooling-off period and any finance or inspection conditions, and keeps you updated on whether the sale has become unconditional. If the buyer asks for something, such as an extension, they'll advise you on your options.

4. Discharging your mortgage

If you have a loan secured on the property, your bank has to release it at settlement. Your conveyancer helps you lodge a discharge request with your lender and then confirms the payout figure with them. Banks can take two weeks or more to process this, so it's one of the first things to start once the sale is unconditional. Your bank may also charge a discharge fee.

5. Tax clearance before settlement

Since 1 January 2025, every seller of Australian property needs a clearance certificate from the Australian Taxation Office, whatever the sale price. If you don't provide one before settlement, the buyer must withhold 15% of the price and pay it to the ATO. Australian residents can apply online and the certificate is usually issued quickly, but it needs to be done in time. Your conveyancer will remind you and check it's in place.

If you're selling new residential property or vacant land you've subdivided, GST withholding may also apply. Your conveyancer will tell you if it does.

“Sellers are often surprised that a missing ATO certificate can hold back 15% of their sale price. It takes minutes to apply for. It just has to be done before the day.”

6. Adjustments and the settlement statement

If you've paid council rates, water charges or owners corporation fees in advance, the buyer reimburses you for the part that covers the period after settlement. Your conveyancer works out these adjustments and agrees them with the buyer's side. You'll see the result on a settlement statement showing exactly what's paid out, including the mortgage payout and the agent's commission, and what comes to you.

7. Settlement day

Settlement happens electronically through PEXA. In a few minutes your mortgage is paid off, the agent is paid, and the balance is deposited into your nominated account. The transfer is lodged with Land Use Victoria, and the agent hands the keys to the buyer.

8. After settlement

Your conveyancer makes sure council and the water authority know you no longer own the property, and sends you a final statement. Keep it with your records. If the property wasn't your main residence for the whole time you owned it, your accountant will need it to work out any capital gains tax.

What you need to do yourself

• Tell your conveyancer about anything that affects the property, such as building work you've done, a dispute with a neighbour or an unregistered agreement;
• Apply for your ATO clearance certificate as soon as you decide to sell;
• Lodge the mortgage discharge request with your bank when asked;
• Keep the property in the condition it was sold in, and leave included items like fixtures and appliances in place;
• Cancel your building insurance only after settlement, never before.

The bottom line

A sale goes smoothly when the paperwork is ready before the first open house. Bring your conveyancer in before you list, start the bank discharge and ATO certificate early, and settlement day becomes a matter of checking your bank balance.