A cooling off period gives you time to cancel the contract if you change your mind. In Victoria, the period is 3 clear business days and starts when you sign the contract (not the date the seller co-signs).
- Clear excluding the day you sign.
- Business days excludes weekend and public holidays.
- Your cooling off period may therefore be running before you receive the exchanged contract.
If you do not exercise your cooling off rights, you must continue with the purchase (subject to any terms and conditions).
It is important to know that if you exercise your cooling off rights, you must pay a termination penalty of 0.2%* of the purchase price. This amount is usually taken from the deposit that has been paid.
When does a cooling off period not apply?
You will not have the benefit of a cooling off period if you purchase a property:
- At auction
- Within 3 clear business days before or after a publicly advertised auction
- You are an estate agent
The purchase is a corporate body (company) - The property is more than 20 hectares in size and is used primarily for farming
- The property is used primarily for industrial or commercial purposes
- You and the vendor previously signed a contract for the sale of the same land in substantially the same terms.
How do I exercise my cooling off right?
You must give written notice to the seller if you want to cancel the contract within the cooling off period. Your representative can do this on your behalf.
Your instructions to your representative must be provided in writing.
*If based on the purchase price the 0.2% amount is less than $100, the fee will be $100.
