Cooling-Off Period in Victoria (2026)

What cooling-off is in VIC

Victorian residential property buyers have a statutory right to withdraw from a private-treaty contract within 3 clear business days of signing, without needing to give the seller any reason. The right is granted by section 31 of the Sale of Land Act 1962 (Vic). It exists because residential property is a large, emotionally-charged purchase and buyers sometimes commit before they’ve had time to think.

How long the period is

The period is 3 clear business daysfrom the date the contract is signed by both parties. "Clear business days" excludes weekends, public holidays, and both the day you sign and the day you withdraw.

Example: contract signed by both parties on Monday afternoon. Cooling-off period runs Tuesday, Wednesday, and Thursday business days. Your written notice must be delivered to the seller or seller’s agent before the end of business on Thursday. Leave it to Friday morning and the contract is binding.

If a public holiday falls in the middle (e.g. Melbourne Cup Day), that day doesn’t count and the period effectively extends by a day.

When cooling-off doesn’t apply

The Sale of Land Act 1962 lists specific exclusions where cooling-off rights do not apply:

• Auction purchases: contracts entered into at a publicly advertised auction.
• Pre-auction and post-auction purchases: contracts signed within 3 clear business days before or after a publicly advertised auction (preventing sellers from losing auction protections through last-minute private negotiation).
• Passed-in auction sales: properties passed in at auction then sold within 3 clear business days afterward.
• Estate agent buyers: contracts where the buyer is a licensed estate agent or a corporate body.
• Commercial / industrial property: some non-residential property categories.

Residential private-treaty sales not falling into the above categories DO have cooling-off rights. The most common buyer scenario where cooling-off doesn’t apply is auction, and auction is also where buyers most need protection, which is why thorough pre-auction due diligence matters.

The penalty if you withdraw

The seller can keep the lesser of $100 or 0.2% of the purchase price. On a $500,000 property that’s $1,000. On a $1.5M property that’s $3,000. The rest of any deposit you’ve paid must be refunded to you within 14 days.

Importantly, this 0.2%/$100 penalty is the seller’s full and final remedy. They cannot pursue you for additional damages for withdrawing during cooling-off, even if they had been planning to accept a higher offer in the meantime.

How to withdraw properly

To exercise cooling-off rights, you must give written notice to the seller or seller’s estate agent before the cooling-off period ends. Key practical points:

• Written notice only. Phone calls and verbal statements don’t count. Notice can be email or letter.
• Belt and braces. Best practice: signed letter delivered by hand (with photo evidence) AND email AND registered post.
• Send to the seller or seller’s estate agent. Either is sufficient under the Act, but going via the agent is the easier path because they’ll have a process for it.
• Don’t leave it to the last day. If the agent is out of office on Thursday afternoon and your email goes unread until Friday, you’ve missed the window.
• Your conveyancer handles this. Tell your conveyancer immediately when you decide to withdraw; they’ll send formal notice on the day they receive instructions.

Cooling-off and auctions

Auction contracts are unconditional from the fall of the hammer. There is no cooling-off period and no path to renegotiate or withdraw. The exclusion extends 3 business days either side of the auction date for purchases of the same property, so you can’t escape auction terms by negotiating a private sale on the auction-day-minus-1 either.

This makes pre-auction due diligence (building and pest, contract review, finance pre-approval) much more important in Victoria than in private treaty. Read our property auction guide and the due diligence checklist.

Section 32 and other rescission rights

Cooling-off is one withdrawal mechanism. There are others:

Section 32 deficiencies

Under section 32K of the Sale of Land Act 1962, a buyer may rescind the contract (at any time before settlement, without the cooling-off penalty) if the seller failed to disclose certain matters in the Section 32 vendor statement that they were legally required to include. Examples: undisclosed encumbrances, planning matters, building permits, owners corporation issues, GAIC (Growth Areas Infrastructure Contribution) status.

This is rescission territory and requires legal advice. If your conveyancer finds a material undisclosed matter in the Section 32 after cooling-off has ended, they may still be able to extract you from the contract.

Special conditions in the contract

Private treaty contracts often include "subject to" conditions: subject to finance, subject to building and pest, subject to sale of buyer’s existing property. If these conditions aren’t satisfied by the dates specified, the contract terminates and your deposit is refunded, without the 0.2% penalty. These are an alternative to (or in addition to) cooling-off and often give a longer, less penalised withdrawal path.

Practical advice

• Plan to use cooling-off as your last-resort exit only. Better path: do due diligence before signing.
• Have your conveyancer review the contract and Section 32 the day after you sign, leaving you 2 business days to act on anything they flag.
• Have a final discussion with your broker about whether your finance pre-approval is solid for this specific property.
• If you’re withdrawing, decide by end of day 2 so day 3 is for executing the notice, not deciding.
• Always use written notice. Email, signed letter, and registered post. Photograph or scan the proof of delivery.
• Check the contract for any waiver of cooling-off the seller might have included. Some contracts (rarely) ask buyers to waive cooling-off; don’t sign that without legal advice.