A cooling-off period gives some property buyers in Victoria a short period of time to reconsider after signing a contract of sale.
For most private sales of residential property, the cooling-off period is three clear business days. It usually begins from the date the buyer signs the contract, not when the seller signs it.
What Does Three Clear Business Days Mean?
Three clear business days means weekends and public holidays are not counted.
For example, if you sign a contract on Monday, the three clear business days are usually Tuesday, Wednesday and Thursday, assuming there are no public holidays.
If you sign on a Friday, the weekend is not counted. The three clear business days would usually be Monday, Tuesday and Wednesday.
Can You Cancel During This Period?
If cooling-off rights apply, a buyer can usually withdraw by giving written notice to the seller or the seller’s agent.
However, there may be a cost. Consumer Affairs Victoria states that the buyer may need to pay the greater of $100 or 0.2% of the purchase price.
When Cooling Off May Not Apply
Cooling-off rights do not apply in all situations. For example, they generally do not apply if the property is bought at auction, or within three clear business days before or after a publicly advertised auction.
They may also not apply to certain commercial, industrial, farming or company purchases.
More Information
This is general information only. Buyers should confirm their position with their conveyancer or solicitor before signing, or as soon as possible after signing. For more information, visit Consumer Affairs Victoria
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Frequently Asked Questions
How is the 3 day cooling-off period calculated?
In Victoria, the cooling-off period is usually calculated as three clear business days from when the buyer signs the contract. Weekends and public holidays are not counted. For example, if you sign on a Monday, the three clear business days are usually Tuesday, Wednesday and Thursday. If you sign on a Friday, the three clear business days are usually Monday, Tuesday and Wednesday, assuming there are no public holidays.
Is there a cost for cooling off?
Yes. In Victoria, if you cool off after signing a contract, you may need to pay the greater of $100, or 0.2% of the purchase price. For example, on an $800,000 property, 0.2% = $1,600. Buyers should confirm the exact cost and process with their conveyancer or solicitor before deciding to cool off.
