The cooling-off period in Victoria — what it actually means

The short version

Under section 31 of the Sale of Land Act 1962 (Vic), a buyer of residential or small rural land generally gets a 3 clear business day cooling-off period after signing the contract. If you change your mind in that window, you can end the contract — but you forfeit a penalty of $100 or 0.2% of the purchase price, whichever is greater.

"Clear business days" excludes the day you signed, weekends and public holidays — so it's a little longer in practice than three calendar days.

When cooling-off does NOT apply

This is the important part, because the exceptions are common. You do not get a cooling-off period if:

• You bought at a public auction. The sale is binding the moment the hammer falls.
• You signed within 3 clear business days before or after a publicly advertised auction for that property.
• The property is used mainly for industrial or commercial purposes.
• The land is more than 20 hectares and used mainly for farming.
• The buyer is an estate agent or a corporate body, or the buyer has bought under terms previously negotiated through an agent.

Because the auction-adjacent exception catches private sales signed just before or after an advertised auction, it's worth knowing exactly when and how you signed.

How to use it (if you have it)

To cool off, you give the vendor (or their agent) written notice within the 3 clear business days. The deposit is refunded, less the penalty. Cooling-off exists so you can do final due diligence — finance, building and pest, owners corporation checks — and step back if something unexpected turns up. Use the window for exactly that.

Why it matters

Whether you have a cooling-off period changes how much homework has to be done before you sign. If you're buying at auction, or just before or after one, there's no safety net: the contract and the Section 32 have to be fully understood beforehand, because once you've signed you're committed.

What to check before you sign

1. Do you actually get a cooling-off period? Confirm none of the exceptions apply to how you're buying.
2. Know the deadline. Count 3 clear business days — exclude the signing day, weekends and public holidays.
3. Front-load due diligence near an auction. If there's no cooling-off, finance and inspections come first, not after.
4. Read the Section 32 either way. Cooling-off is a buffer, not a substitute for understanding the contract.

Common questions

Is the Victorian cooling-off period the same as NSW?

No. Victoria is 3 clear business days with a penalty of $100 or 0.2% of the price; NSW is a different length and penalty. Don't assume the rules carry across state lines.

Can the vendor ask me to waive cooling-off?

Victoria doesn't use the NSW-style waiver certificate. Here, cooling-off either applies or it doesn't, based on how you bought — most often it's removed because the sale was at, or close to, a public auction.

What does the penalty come to?

$100 or 0.2% of the purchase price, whichever is greater. On a $700,000 purchase that's $1,400; on a $400,000 purchase it's $800.