Buyer’s guide · Victoria
Cooling-off in Victoria: what every buyer needs to know
In Victoria you can usually cool off within 3 clear business days of signing a contract. Here’s how it works, what it costs and the many cases where it doesn’t apply.
Victoria’s cooling-off period gives buyers a short window to change their mind after signing a contract of sale. It comes from section 31 of the Sale of Land Act 1962, so it applies whatever the contract says.
It’s a short window, and there are important exceptions, including any purchase at or around an auction. This guide explains how the cooling-off period works, how to use it, what it costs and how to protect yourself when it doesn’t apply.
Key takeaways
- You can end the contract within 3 clear business days of the day you sign it.
- If you cool off, the seller can keep $100 or 0.2% of the price, whichever is more. Everything else you’ve paid must be refunded.
- You must give written notice to the seller or the seller’s agent in time.
- There’s no cooling-off if you buy at a publicly advertised auction, or within 3 clear business days before or after it.
- Only the buyer can cool off. The seller is bound as soon as they sign.
On this page
How the cooling-off period works
Under section 31 of the Sale of Land Act 1962, you can end a contract to buy land within 3 clear business days of the day you sign it. The period runs from your signature, not the seller’s. It doesn’t wait for the seller to sign or for the agent to hand you a copy.
Counting 3 clear business days
Clear business days don’t include the day you sign, weekends or public holidays. For example, if you sign on a Thursday and there are no public holidays, the business days are Friday, Monday and Tuesday, and you have until the end of Tuesday. Don’t leave it to the last day.
It only protects the buyer
The cooling-off right belongs to the buyer. Once the seller signs, they’re bound by the contract and can’t cool off. The right comes from the Act, so a term in the contract can’t take it away.
How to cool off
To end the contract, you must give the seller or the seller’s agent written notice that you’re ending it, or leave the notice at their address, within the 3 clear business days. A phone call or a chat with the agent isn’t enough.
Get advice before you send the notice. Once the contract ends, you can’t change your mind, and the property may go to another buyer. We can prepare and serve the notice for you.
Cooling off: what to do
- Check the day you signed, and count 3 clear business days.
- Prepare a written notice ending the contract under section 31 of the Sale of Land Act 1962.
- Give it to the seller or the seller’s agent, or leave it at their address, before the period ends.
- Keep proof of when and how you delivered it.
- Ask for your refund, less the amount the seller can keep.
What it costs
If you cool off, you’re entitled to a refund of everything you’ve paid, except $100 or 0.2% of the purchase price, whichever is more.
| Purchase price | Amount the seller can keep |
|---|---|
| $500,000 | $1,000 |
| $750,000 | $1,500 |
| $1,200,000 | $2,400 |
That’s a small price compared with being locked into the wrong property. It’s also far less than you’d risk by defaulting later, when the deposit can be up to 10% of the price. Our guide to early release of the deposit in Victoria explains how your deposit is held until settlement.
When there’s no cooling-off
The cooling-off period doesn’t apply if:
- you buy at a publicly advertised auction, or within 3 clear business days before or after it
- the property is used mainly for industrial or commercial purposes
- the property is more than 20 hectares and used mainly for farming
- you and the seller have already signed a contract for the same land on substantially the same terms
- you’re an estate agent or a corporate body, such as a company.
Auctions and offers around an auction
The auction exception catches a lot of buyers. If you buy in the 3 clear business days before an advertised auction, or in the 3 clear business days after it, including after a property is passed in, you have no cooling-off, even though it feels like a private sale. Read our guide to buying at auction in Victoria before you make an offer.
Buying through a company
If you’re buying through a company, including a company acting as trustee of a family trust or a self-managed super fund, you’re a corporate body and the cooling-off period won’t apply.
Do your checks before you sign
Three days isn’t long. It’s rarely enough time to arrange a building inspection, get formal finance approval and have the contract reviewed. The safer approach is to do as much as you can before you sign, and to negotiate conditions that protect you after you sign.
- Have us review the contract and the seller’s section 32 statement before you sign.
- Make the contract subject to finance approval and a satisfactory building and pest inspection. These conditions can run for longer than the cooling-off period.
- Don’t sign anything an agent describes as “just an offer”. In Victoria, you make an offer by signing the contract, and once the seller signs too, it’s binding.
If you’re buying at or close to an auction, you won’t have cooling-off to fall back on, so do your checks first. Our step-by-step guide to buying in Victoria explains where cooling-off fits in the whole process.
Frequently asked questions
How long is the cooling-off period in Victoria?
3 clear business days from the day you sign the contract. The day you sign, weekends and public holidays don’t count.
How much do I lose if I cool off in Victoria?
The seller can keep $100 or 0.2% of the price, whichever is more. On a $750,000 purchase, that’s $1,500. The rest of what you’ve paid must be refunded.
Is there a cooling-off period at auction in Victoria?
No. There’s none if you buy at a publicly advertised auction, or within 3 clear business days before or after it.
Can the contract take away my cooling-off right?
No. The right comes from section 31 of the Sale of Land Act 1962, and a term in the contract can’t exclude it. It doesn’t apply in the exceptions set out in the Act, such as auctions.
Does the seller have a cooling-off period?
No. Only the buyer can cool off. Once the seller signs, they’re bound by the contract.
Need help before you sign?
Talk to our property team
Property & Conveyancing
Our team can review your contract and section 32 statement before you sign, advise you on cooling-off and conditions, serve a cooling-off notice if you need one and handle your purchase through to settlement.
This article is general information only and is not legal advice. It reflects Victorian law at the date of publication. Please contact us for advice about your circumstances.
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