Victoria’s Reserve Price Rules Change on 1 October 2026: What Buyers and Sellers Need to Do Now

Crownmark Lawyers | Property & Conveyancing

For as long as Victorians have bought property at auction, the seller’s reserve has been the one number nobody outside the vendor’s camp was allowed to know. Buyers researched comparable sales, sat through open homes and arranged finance, then bid against a figure that was only revealed, if at all, when the auctioneer announced the property was “on the market”. That changes on 1 October 2026.

The Consumer Legislation Amendment Bill 2026 passed the Victorian Parliament this month. From 1 October, a residential property cannot go to auction unless the seller’s reserve price has been published, as a single dollar figure, for at least seven days beforehand. It is the most significant change to Victorian auction practice in a generation, and most of the commentary so far has been about bidding tactics. This article is about the legal side: what the new rules actually require, and what the seven-day window means for buyers and sellers who are in the market this spring.

What the New Rules Require

The reforms sit alongside the existing Sale of Land Act framework and apply to public auctions and fixed-date sales of residential land in Victoria. Four requirements matter most.

• A single figure, in writing. The seller must confirm the reserve as one dollar amount. Price ranges and “from” figures do not satisfy the requirement.

• Seven clear days. The reserve must be published at least seven days before the auction, and every piece of advertising for the property must be consistent with it.

• No reserve, no auction. If the reserve has not been published within the required time, the auction cannot proceed on the scheduled day.

• It cannot be raised. Once published, the reserve may be lowered but not increased. The days of a reserve rising with the mood of the crowd are over.

  
  

Two related changes travel with the reserve rules. The Statement of Information that agents currently provide is replaced by a Property Price Statement, and once a sale becomes unconditional the final sale price must be published and remain public for at least 18 months. Together, these measures give buyers something they have never had in a Victorian auction campaign: a verifiable floor before the day, and verifiable outcomes afterwards.

⚠️  A note on timing: The Bill was amended in the Legislative Council in August. The commencement date and the transitional arrangements for auctions falling in the first days after 1 October should be checked against the Act as assented before you rely on them for a specific campaign.

Why It Matters: The Number Was Rarely Reached

Figures from the Real Estate Institute of Victoria, reported by Domain, indicate that around 40 per cent of Victorian properties taken to auction in the past 12 months sold below the reserve on the day. In other words, the confidential number was frequently a number the market would not pay. Buyers were making the largest financial decision of their lives with less information than the person selling to them, and often less than the agent standing between them. Publication removes that asymmetry. It does not remove the risk that sits on the buyer’s side of an auction contract, which is where the legal work begins.

For Buyers: The Seven Days Are a Due-Diligence Window

Knowing the reserve changes how you bid. It does not change what you are bound to. A successful bid at a Victorian auction is still an unconditional contract: there is no cooling-off period, no finance condition and no opportunity to renegotiate the terms once the hammer falls. The published reserve gives you a week of certainty about the seller’s floor. Used well, that week is the time to settle the legal position before you commit.

Filter first, then review

The reserve lets you decide early whether a property is genuinely within reach. If it is, obtain the contract of sale and the Section 32 vendor statement immediately and have them reviewed. Special conditions, easements and covenants on title, owners corporation obligations, planning overlays and outstanding notices are all matters that can be identified and, where appropriate, negotiated before auction day. After the auction they are simply yours.

Treat the reserve as the seller’s floor, not your ceiling

A published reserve is the minimum the seller will accept. It is not a valuation and it is not a guide to where competitive bidding will finish. Your own limit should still be set from comparable settled sales and your finance approval, and it should be fixed before the day. The deposit, usually ten per cent, must be available in cleared funds when you sign.

⚠️  Practical point: If a reserve is published and then reduced during the seven days, the advertising must change with it. A reduction late in the campaign can signal a seller who needs to sell; it can also draw more bidders. Neither is a reason to skip the contract review.

For Sellers: The Reserve Becomes a Written Commitment

Sellers have the more significant adjustment to make. Under the current practice a reserve can be settled the night before, or on the morning, and revised as the campaign develops. From 1 October the reserve is a published, written figure that cannot be raised. It needs to be decided at least a week out, on evidence, and it needs to be a number the seller is prepared to accept.

• Price on evidence. Ask your agent for the comparable settled sales that support the proposed reserve. A reserve set on hope rather than data is now visible to every buyer, and a property that passes in against a published reserve carries that history into any subsequent negotiation.

• Prepare the legal documents early. The contract of sale and Section 32 must be complete and accurate before the campaign begins, not after buyer interest arrives. With sale prices now published, defective disclosure will be easier for a disappointed purchaser to identify and act on.

• Understand the timing. A reserve that misses the seven-day deadline means the auction cannot proceed. Build the publication date into the campaign calendar from the outset and confirm it in writing with your agent.

  
  

The reform rewards sellers who are organised and priced correctly. For them, publication is likely to bring more serious bidders on the day and fewer wasted campaigns. The sellers who will find it harder are those who have relied on adjusting the number as the campaign unfolds.

What Has Not Changed

It is worth being clear about the limits of the reform. Vendor bids remain permitted, provided they are declared. The contract on display at the auction is still the contract you sign, and its terms still govern the transaction. Cooling-off does not apply to auction purchases, and a purchase negotiated within the statutory period around a passed-in auction remains subject to the existing rules. The reserve is now public. Everything else that makes an auction purchase demanding is exactly as it was.

Crownmark Lawyers acts for buyers and sellers across Victoria on auction and private treaty transactions, including pre-auction contract and Section 32 review, vendor disclosure and settlement. Under Crownmark Assured Pricing, the fee is fixed and agreed before the work begins. If you are bidding or selling this spring and would like the contract reviewed before the reserve is published, you are welcome to get in touch.

Harjit Mahindroo

Managing Partner

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Phone: 1800 884 751

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Email: info@crownmarklaw.com.au

This article is general information about changes to Victorian auction law and is current as at 12 September 2026. It is not legal advice and does not take account of your particular circumstances. The Consumer Legislation Amendment Bill 2026 was amended during its passage and the final provisions, including commencement and transitional arrangements, should be confirmed against the Act as assented. For advice on your situation, please contact us or another qualified Victorian practitioner.