Signed a contract and having second thoughts? In many private sales, the cooling-off period in Victoria gives residential buyers a short window to change their mind. But the rules are strict, the window is short, and it does not apply in every situation – including auctions. Here is what every buyer should know.
What Is the Cooling-Off Period in Victoria?
Under the Sale of Land Act 1962 (Vic), a buyer of residential property or small farming land in a private sale generally has three clear business days after signing the contract to end it. “Clear business days” means weekends, public holidays and the day of signing are not counted. If you sign on a Monday, for example, the cooling-off period usually ends at 5pm on Thursday.
To end the contract during the cooling-off period, you must give written notice to the seller or their agent within the time limit. A phone call is not enough. Consumer Affairs Victoria explains the rules in more detail.
What Does It Cost to Withdraw?
If you use the cooling-off period in Victoria, the seller can keep $100 or 0.2% of the purchase price, whichever is greater. On a $700,000 purchase, that is $1,400. The rest of your deposit must be refunded.
| Purchase price | 0.2% of price | Amount seller may keep |
|---|---|---|
| $450,000 | $900 | $900 |
| $650,000 | $1,300 | $1,300 |
| $850,000 | $1,700 | $1,700 |
| $1,200,000 | $2,400 | $2,400 |
When the Cooling-Off Period Does Not Apply
There is no cooling-off period in Victoria if:
- You buy at a public auction.
- You buy within three clear business days before or after a publicly advertised auction for the property.
- You received independent legal advice from a lawyer before signing.
- The property is used mainly for primary production and is above the small-farm size limit.
- You are an estate agent or a corporate body buying the property.
- You previously signed a similar contract for the same land.
These exceptions catch many buyers off guard – especially when buying just after an auction has passed in.
Cooling-Off Period Victoria vs Contract Conditions
The cooling-off period is a short safety net, not a substitute for proper protection. Special conditions in the contract usually give stronger, longer-lasting rights:
- Finance clause – lets you end the contract if your loan is not approved by a set date.
- Building and pest clause – lets you end the contract if serious defects are found.
- Sale of another property clause – makes the purchase conditional on selling your current home.
Ask your conveyancer to add these before you sign. Our pre-purchase contract review covers the contract, the Section 32 and suitable special conditions.
How to Use the Cooling-Off Period Wisely
- Send the contract to your conveyancer straight away – ideally the same day you sign.
- Book any inspections immediately – building and pest reports take time.
- Confirm finance – speak with your broker about any risks to approval.
- Check the deadline – count the clear business days carefully.
- Give written notice if you withdraw – and keep proof of delivery.
Is There a Cooling-Off Period for Sellers?
No. Sellers do not have a cooling-off right. Once a seller signs a contract, they are bound by it unless the buyer validly ends it or a condition is not met. That is why sellers should have their conveyancer review the contract and agent’s conditions before marketing begins.
Commercial Property and the Cooling-Off Period
The cooling-off period in Victoria applies to residential property and small farms. Commercial property buyers generally do not have a statutory cooling-off right, so due diligence must be completed before signing or built into the contract as conditions. See our commercial property conveyancing service for more.
Cooling-Off Period Example: Counting the Days
Working out when the cooling-off period ends can be confusing. Here is a simple example for a private sale:
| Day | Counts towards cooling-off? |
|---|---|
| Friday – contract signed | No (day of signing) |
| Saturday and Sunday | No (weekend) |
| Monday | Yes – day 1 |
| Tuesday | Yes – day 2 |
| Wednesday | Yes – day 3 (cooling-off period ends) |
If a public holiday falls in that period, it is not counted either. Always confirm the exact deadline with your conveyancer – it is easy to miscount when you are under pressure.
What Happens After the Cooling-Off Period Ends?
Once the cooling-off period expires, the contract continues and you can only end it under a special condition (such as finance or a building inspection) or if the seller breaches the contract. Your conveyancer will start searches, monitor any condition deadlines, calculate adjustments and prepare for settlement. If you are unsure whether to proceed, get advice before the cooling-off period ends – not after.
For more on the next steps, read our property settlement timeline and our guide to the Section 32 Vendor Statement.
Frequently Asked Questions
How long is the cooling-off period in Victoria?
Three clear business days after you sign the contract, for most private sales of residential property. Weekends and public holidays are not counted.
Is there a cooling-off period when buying at auction?
No. Auction contracts are unconditional and there is no cooling-off period, including for sales within three clear business days before or after an advertised auction.
How do I cancel during the cooling-off period?
Give written notice to the seller or their agent before the period ends. Keep a copy and proof of when it was delivered.
Do I lose my whole deposit if I cool off?
No. The seller can keep the greater of $100 or 0.2% of the purchase price, and the rest of the deposit is refunded.
Need help? Easy Home Conveyancing offers fixed-fee conveyancing across Melbourne and Victoria. Call 0412 850 551 or request a free quote.
