Buying through your SMSF in Victoria
The contract and the Section 32
A Victorian seller must give the buyer a signed vendor statement before the buyer signs the contract (Sale of Land Act 1962, section 32). It sets out the title, mortgages, covenants and easements, planning information and, for units and townhouses, the owners corporation certificate. For an SMSF we read it with the fund's rules in mind: whether the property's use supports the purchase, whether any existing lease is on commercial terms, and whether anything in the title affects the fund's plans. Our SMSF purchase service covers the full process.
Cooling-off: often not available to a fund
Victoria gives buyers three clear business days to cool off after signing a private sale contract for residential property or rural property under 20 hectares. Pulling out costs $100 or 0.2% of the price, whichever is more. Cooling-off doesn't apply to auction sales, sales within three clear business days before or after an auction, property used mainly for industrial or commercial purposes, or where the buyer is a corporate body. Two of those exclusions catch many SMSF purchases: a fund with a corporate trustee is a corporate buyer, and commercial property has no cooling-off at all. For most funds, the contract review has to happen before the trustee signs.
The deposit
The deposit is held in trust by the agent or the seller's lawyer or conveyancer until settlement. It can be released to the seller early only if the contract is unconditional, the buyer is satisfied with the seller's proof of debts, and at least 28 days have passed since signing. For an SMSF, the deposit should come from the fund's own account.
Stamp duty and the State Revenue Office
The SRO assesses duty on the purchase. Where the fund borrows through a custodian, the SRO treats the custodian's purchase as dutiable, then looks at the custodian's declaration of trust and the later transfer to the fund once the loan is repaid. Both can be exempt, but only if the evidence shows the fund provided all the purchase money. Since 10 August 2026, SMSF borrowing for real property is limited to business real property, so this mostly arises on commercial purchases: see Buying commercial property in an SMSF.
When the fund is selling
The same rules apply in reverse. As seller, the fund's trustee must give the buyer a signed Section 32 statement before the buyer signs, so it needs to be ready before the property is marketed. If the property is held by a custodian under a loan, the custodian is the seller on title, and the loan has to be paid out at settlement. The sale proceeds must go back to the fund's account, not to a member. See Selling property in an SMSF.
Settlement
Victorian settlements are done electronically, usually through PEXA. Funds, duty and the transfer are exchanged online, so no one needs to attend, and the title is registered in the buyer's name. Before you sign, check whose name goes on the contract.