Cooling-Off Period in Victoria

Changing your mind after signing a property contract?

In Victoria, buyers have a short “cooling-off period” that lets them withdraw from a property purchase – but strict rules and time limits apply. Here’s what you need to know before you act.

What is a cooling-off period?

The cooling-off period is a short window of time (3 business days) where a buyer can legally cancel the Contract of Sale after signing, without needing to give a reason.

It’s designed to give buyers a moment to rethink their decision — especially if they feel rushed, uncertain, or discover new information about the property.

How long is the cooling-off period in Victoria?

The standard cooling-off period is 3 clear business days starting from the day the buyer signs the contract.
Weekends and public holidays don’t count as business days.
The clock starts ticking the next business day after both parties have signed the contract.

Example:
If you sign on Wednesday, your cooling-off period expires at 5pm on Monday (assuming no public holidays in between).

How to cancel during the cooling-off period

To cancel (or “rescind”) the contract during the cooling-off period:

Provide written notice to the seller or their agent stating that you’re cancelling the contract.
Make sure it’s received within the 3-day window — not just sent.
The seller will refund your deposit, but may keep $100 or 0.2% of the purchase price (whichever is greater) as a penalty.

Example:
For a $700,000 property, the seller may retain $1,400 (0.2%) if you withdraw during the cooling-off period.

When the cooling-off period doesn’t apply

The cooling-off period does not apply in certain situations:

You bought the property at a public auction (or within 3 days before or after one).
You’re a company buying the property (not an individual).
The property is not in Victoria.
You’ve previously signed a similar contract for the same property.

In these cases, once the contract is signed, it’s legally binding — and you can’t back out without penalty.

Should you use the cooling-off period?

The cooling-off period can be helpful if:

You feel pressured to sign quickly and want to double-check details.
Your lender or legal advisor hasn’t fully reviewed the contract.
You uncover an issue with the property after signing.

But use it wisely — it’s not a free pass to walk away casually. Sellers may still retain part of your deposit, and it can strain future negotiations if you later want to re-offer.

Common mistakes to avoid

Misunderstanding when the cooling-off period applies

Some buyers think every sale has a cooling-off period — but auctions and certain private sales are excluded.

Not realising the 3-day period starts the moment the buyer signs

Many think it starts when both parties sign, or when the vendor signs later. Nope - countdown starts as soon as the buyer signs the contract.

Thinking you can cancel without any penalty

A termination fee (up to 0.2% of the purchase price) still applies. (Example: $800k property → $1,600 fee.)

Missing the deadline to give written notice

Missing the deadline to give written notice.

Do you need a lawyer or conveyancer?

While a cooling-off period offers protection, having a conveyancer on your side ensures you can use that protection correctly and avoid costly mistakes.

Legal Protection

Process & Compliance Support

Having professional guidance ensures you don’t lose your cooling-off rights or miss critical deadlines.

Need Help with Your Contract?

Don’t navigate your property contract alone. Haitch Conveyancing’s experienced team will review every detail and ensure you’re fully protected from start to finish.