Cooling-Off Period Victoria: Your Rights as a Property Buyer
Victorian property buyers have a 3-business-day cooling-off period after signing a contract. But there are important exceptions — including auctions. Here's what you need to know.
The cooling-off period is one of the most important buyer protections in Victorian property law. But it's also one of the most misunderstood. Many buyers assume they always have time to change their mind after signing — but that's not always true.
What is the cooling-off period?
In Victoria, a buyer of residential property generally has a 3-business-day cooling-off period after signing the contract of sale. During this time, you can withdraw from the contract without having to give a reason.
If you exercise your cooling-off rights, the vendor must refund your deposit — but they are entitled to keep $100 or 0.2% of the purchase price (whichever is greater) as a penalty.
When does the cooling-off period NOT apply?
This is the critical part. The cooling-off period does not apply in the following circumstances:
- Properties sold at public auction — there is no cooling-off period if you're the winning bidder at an auction
- Properties sold within 3 business days before or after a public auction of the same property
- Commercial or industrial properties
- Properties purchased by a company
- Properties sold by a mortgagee (bank selling a repossessed property)
- If the buyer voluntarily waives the cooling-off period by signing a prescribed certificate from a legal practitioner — note this is a deliberate choice by the buyer, not an automatic consequence of getting legal advice
The most important exception for most buyers is the auction rule. If you're planning to bid at auction, you have no cooling-off rights — so your due diligence (including reviewing the Section 32) must be complete before you bid.
How do I exercise my cooling-off rights?
To withdraw during the cooling-off period, you must give written notice to the vendor or their agent before 5pm on the last day of the cooling-off period. The notice can be delivered by hand, post, email, or fax to the vendor's address specified in the contract.
It's strongly recommended that you send the notice by email (with read receipt) and also call the agent to confirm receipt. Keep a copy of everything.
Can the cooling-off period be extended?
Yes — by agreement with the vendor. If you need more time to review the Section 32 or get building and pest inspections done, you can request an extension. The vendor is not obliged to agree, but many will if asked reasonably.
What the Section 32 must say about cooling-off
The Section 32 is required to include a statement about the buyer's cooling-off rights. This is a statutory warning that must appear in the document. If it's missing, the vendor may be in breach of the Sale of Land Act.
What should I do during the cooling-off period?
- Have your conveyancer or solicitor review the Section 32 and contract in full
- Arrange a building and pest inspection
- Confirm your finance approval with your lender or broker
- Check the zoning and planning certificates for any restrictions
- Read all special conditions in the contract carefully
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