What Is the Cooling-Off Period?

In Victoria, the cooling-off period is a legal timeframe that allows a buyer to cancel a signed Contract of Sale for residential or small rural property without incurring major penalties.It offers buyers a final opportunity to reconsider their decision after signing the contract but before settlement is complete.

The cooling-off right is governed by the Sale of Land Act 1962 (VIC) and applies in most private treaty sales.

⏱️ How Long Is the Cooling-Off Period?

The standard cooling-off period in Victoria is three business days.This timeframe begins the day after the buyer signs the Contract of Sale.

If you wish to cancel the contract during the cooling-off period, you must give written notice to the seller or their representative (typically the real estate agent or seller’s solicitor/conveyancer).

📋 Important Rules to Know

While the cooling-off period provides a safety net, there are important conditions and limitations:

• Deposit Forfeiture: If you cancel the contract during the cooling-off period, the seller may retain $100 or 0.2% of the purchase price (whichever is greater) from your deposit.

• Exemptions: The cooling-off period does not apply if:

  • The property is bought at a public auction (or within three business days before or after an auction).

  • The property is commercial (not residential) or exceeds 20 hectares in size (small rural property exemption).

  • The buyer is a corporate entity (company or trustee of a trust).

• Negotiated Changes: If you significantly renegotiate contract terms after signing, a new cooling-off period might not automatically start. Always seek legal advice.

📚 Why the Cooling-Off Period Matters

The cooling-off period protects buyers who might:

• Feel pressured into signing

• Have second thoughts after legal review

• Discover new information about the property

• Encounter finance or personal issues unexpectedly

It allows time for deeper due diligence, securing finance approvals, and clarifying any uncertainties — all without losing a significant amount of money if you change your mind.

✅ How DY Conveyancing Melbourne Can Help

At DY Conveyancing Melbourne, we help buyers by:

• Carefully reviewing your Contract of Sale and Section 32 during the cooling-off period

• Advising whether any disclosed information could present a risk

• Assisting with preparing and serving cancellation notices if necessary

• Guiding you through your rights and obligations clearly

Getting professional advice before the cooling-off period expires is crucial to avoid missed opportunities or financial losses.

📞 Need Advice About Your Cooling-Off Rights?

If you’ve signed a property contract and are unsure about proceeding,contact DY Conveyancing Melbourne today for fast, professional advice during your cooling-off period.