Key points
- Most buyers of residential property in Victoria have three clear business days after signing to withdraw from the contract.
- If you withdraw, the seller can keep $100 or 0.2% of the purchase price, whichever is more.
- There is no cooling-off period for purchases at a public auction, or within three clear business days before or after a publicly advertised auction.
- Notice must be given in writing within the cooling-off period, so act quickly and get advice.
How the cooling-off period works
Under the Sale of Land Act 1962 (Vic), a buyer of residential property can usually end the contract within three clear business days after signing it. The count starts the business day after you sign. Weekends and public holidays don’t count, and the date the seller signs doesn’t change the timing.
For example, if you sign on a Thursday, the three clear business days are generally Friday, Monday and Tuesday, so your notice should be given by the end of Tuesday (assuming no public holidays).
How to use your cooling-off right
To withdraw, you must give written notice to the seller or the seller’s agent or legal representative within the cooling-off period. A simple signed letter or email can be enough, but it’s important to send it to the right person, keep proof of delivery, and not leave it to the last minute. We can prepare and send the notice for you.
What it costs to withdraw
If you end the contract during the cooling-off period, the seller is entitled to keep $100 or 0.2% of the purchase price, whichever is greater. On a $750,000 purchase, for example, that’s $1,500. The rest of your deposit is refunded.
When cooling-off doesn’t apply
There is no cooling-off right in a number of situations, including where:
- you buy at a public auction;
- you buy within three clear business days before or after a publicly advertised auction of the property;
- the property is used mainly for industrial or commercial purposes;
- the land is more than 20 hectares and used mainly for farming;
- you are an estate agent or a company; or
- you and the seller previously made a similar contract for the same land.
If one of these applies, you’re committed once you sign, so it’s essential to have the contract and Section 32 vendor statement reviewed before you sign or bid.
After the cooling-off period ends
Once the cooling-off period has passed, you can generally only end the contract if the contract itself allows it, for example under a finance clause or another special condition, or if the seller has failed to meet a legal obligation. That’s why the special conditions you negotiate before signing are so important.
Get advice before you sign
Cooling-off is a safety net, not a plan. The best protection is a contract review before you commit. Asher Freeman Lawyers helps buyers across Victoria with conveyancing and contract reviews, usually for a fixed fee.
Frequently asked questions
How long is the cooling-off period in Victoria?
Three clear business days after you sign the contract. Weekends and public holidays don't count.
How much do I lose if I cool off?
The seller can keep $100 or 0.2% of the purchase price, whichever is greater. The rest of your deposit is refunded.
Is there a cooling-off period if I buy at auction?
No. There's no cooling-off period for purchases at a public auction, or within three clear business days before or after a publicly advertised auction.
Can I cool off by phone?
No. Notice must be given in writing within the cooling-off period. Keep proof that it was delivered.
This article is general information about Victorian and Australian law as at 8 October 2026. It is not legal advice. Contact us for advice about your situation.
