Our land sales program releases land no longer required for transport to enable others to make the most of land and improve communities. As the land owners, we facilitate the process by working with other authorities and agencies that may also influence the outcomes of a sale.
All land sales undergo an initial assessment process by VicTrack to ensure the land is no longer required for transport currently or in the future, and that other key matters won’t affect the sale, such as existing leases, licences, third party services or environmental condition of the land.
Depending on the complexity of the sale, the process can take 12-18 months, and even longer for sales dealing with Crown land or requiring rezoning or subdivisions. The key stages of each land sale application include:
Applicants can submit an application online to register their interest in purchasing VicTrack land. VicTrack will discuss any costs associated with a proposed sale such as surveys, rezoning costs and valuations as the application progresses.
Public and private sales
VicTrack deals with its land in accordance with State Government under the Victorian Government Land Transactions Policy (VGTP) (“include hyperlink here”). Land may be sold by either public process or private sales but generally is sold by public process via a licensed estate agent to ensure a fair and competitive market process.
VicTrack reviews the land for any initial constraints which may affect the sale, such as the location of services, improvements, existing leases or licenses. Timeframe: Typically 2 weeks to complete. A further comprehensive review of site conditions and issue resolution is completed if the land is deemed surplus to transport requirements (refer to next process).
Applications are reviewed by a panel fortnightly and those supported by VicTrack are forwarded to Department of Economic Development, Jobs, Transport and Resources (DEDJTR) and transport authorities to secure clearance that the land is no longer required for transport purposes. Timeframe: Typically three to five months to complete.
VicTrack land is largely zoned Public Use Zone 4 (Transport), which requires a planning scheme amendment in order to change the zoning to support the use of the land after sale. VicTrack normally undertakes the process prior to the sale to ensure the zone reflects the ultimate end use. Timeframe: Depends on statutory planning processes.
VicTrack titles do not always align with how land is being used and in most cases a subdivision is required to enable a sale to be completed. VicTrack completes this process, including obtaining the relevant planning permit from the local council. Timeframe: Typically takes 6-12 months depending on the nature of the subdivision.
Selling Crown land
The sale of Crown land requires additional processes to enable a title to be created, including approvals from the Minister for Environment and Climate Change. lf the land is temporarily or permanently reserved, the reservation needs to be removed to enable the sale. VicTrack will advise applicants if the land is Crown land and provide indications of the likely time to complete this process.
In accordance with the Victorian Government Land Transactions Policy (VGTP) VicTrack land must be sold at no less than market value as determined by the Valuer General Victoria (VGV). VicTrack coordinates this process with every land sale. Public sale or private treaty applicants will be kept informed through the process.
In addition to VicTrack’s internal approvals, approvals must be sought in accordance with the VGTP and Transport Integration Act 2010 for each land sale, where applicable from the Minister for Public Transport, the Treasurer or the Victorian Government Land Monitor.
In the instance of a public sale, VicTrack will establish a reserve price in line with government policy to facilitate the sale. The reserve is established to enable a public market process to be completed which can take the form of auction, expression of interest or tender. If appropriate, a sale through direct negotiation or private treaty will follow a similar process as public sale to establish market value. VicTrack will communicate any offers in writing to the interested party. VicTrack prefers cash terms with a 10% deposit from the purchaser including standard settlement periods of 30 to 120 days.
All information and valuations obtained by VicTrack for the sale of its land is for its purposes only and these reports are not provided to purchasers of land.
Contract documentation and settlement
Each sale requires a contract of sale and vendor’s statement to be prepared and executed by the vendor and purchaser. This generally happens once all commercial terms have been agreed including any site specific conditions. VicTrack has standard clauses included in its contract including:
- mandatory fencing on relevant land boundaries to protect rail operations (if applicable)
- no illegal drainage onto VicTrack land
Once the contract is executed, settlement will be affected in accordance with the agreed terms. VicTrack or its agent will manage this process in consultation with the purchaser.