Vacant Possession in Victoria: What Buyers Should Receive at Settlement

Where a contract requires vacant possession, the buyer should receive the property at settlement without occupants and with the seller’s belongings removed, subject to the contract’s terms. Vacant possession is more than handing over keys: the buyer must be able to take immediate and exclusive possession of the property.

Vacant possession versus subject to lease

The particulars of sale should identify whether the property is sold with vacant possession or subject to a tenancy. A buyer purchasing subject to lease generally takes over the existing rental relationship.

If the property is tenanted but the buyer needs to move in, the contract and lawful rental notice process must support vacant possession by settlement.

Occupants and belongings

The seller, tenants and unauthorised occupants should have left where vacant possession is required. Significant furniture, stored goods or rubbish can also interfere with the buyer’s ability to possess and use the property.

Minor forgotten items and a property packed with belongings are not the same. The response depends on the extent of the problem and the contract.

Final inspection checks

Check every room, garage, shed, roof space accessible for inspection and outdoor area. Confirm occupants have left, included items remain, excluded items are removed and all available keys, remotes and access devices can be handed over.

Take dated photographs and immediately tell your conveyancer about any issue. This preserves time to contact the seller before settlement.

What if the property is not vacant?

Do not assume the buyer can unilaterally cancel or refuse to settle. The appropriate response may involve removal before settlement, a written undertaking, retention arrangement, settlement variation or other contractual remedy.

If settlement timing is affected, the parties should document any agreement to avoid a separate delayed settlement dispute.

DY practical point

Arrange the final inspection early enough to report problems, but close enough to settlement to reflect the likely handover condition. Where removal work is still underway, request confirmation and evidence before settlement.

Frequently asked questions

Does vacant possession mean professionally cleaned?

Not necessarily. Cleanliness and vacant possession are different issues unless the contract includes a specific cleaning obligation.

Can the seller leave rubbish behind?

Substantial rubbish or belongings may interfere with vacant possession. Raise the issue before settlement for advice under the contract.

When are keys released?

Keys are usually released after electronic settlement completes and the seller’s representative authorises the agent.

Official references

Consumer Affairs Victoria — Before property settlement

This article provides general information about Victorian conveyancing as at 17 July 2026. It is not legal or financial advice. The correct approach depends on the contract, title, parties and circumstances of each transaction.