How long is the cooling-off period in Victoria?

When you buy residential or small rural property by private sale in Victoria, the cooling-off period is 3 clear business days. It starts when you sign the contract, and 'clear' business days exclude the day you sign, weekends and public holidays. There is no cooling-off period for auction purchases.

What is the penalty for cooling off in Victoria?

If you withdraw during the cooling-off period in Victoria, you get a full refund of any money paid, less $100 or 0.2% of the purchase price, whichever is greater. On a $600,000 purchase that penalty is $1,200; on a $700,000 purchase it is $1,400. The flat $100 only applies to very low-value purchases.

Is there a cooling-off period when buying at auction in Victoria?

No. There is no cooling-off period for a property bought at a public auction in Victoria, and none for a contract signed within 3 clear business days before or after a public auction. You are committed as soon as you sign, so all due diligence must be completed beforehand.

Is Victoria's cooling-off period the same as New South Wales?

No. Victoria's cooling-off period is 3 clear business days with a penalty of $100 or 0.2% of the price, whichever is greater. New South Wales gives 5 business days with a 0.25% penalty. Both states remove the cooling-off period entirely for auction purchases.

Cooling-off period in Victoria: how the 3 clear business days work

When you buy a home in Victoria by private sale, you usually get a cooling-off period of 3 clear business days after you sign the contract. It is a short safety window to change your mind. It is shorter than in some other states, it starts from the day you sign (not the day the seller signs), and it does not apply at all in several situations, so it is worth knowing exactly how it works before you sign anything.

What the cooling-off period is

The cooling-off period is a statutory right that lets a residential or small rural property buyer in Victoria withdraw from a private-sale contract shortly after signing, for a small penalty, and recover the rest of any money paid. It exists so that a buyer who signed quickly, or who finds a problem straight after signing, is not locked in with no way out.

It is not a licence to renegotiate the price, and it is not a substitute for doing your checks before you sign. It is a narrow, time-limited exit, and it disappears the moment the 3 business days pass.

The 3 clear business days, explained

The period is 3 clear business days. Two details matter for an anxious buyer trying to work out their exact deadline:

It starts when you sign, not when the seller signs and returns the contract. As Consumer Affairs Victoria puts it, the period begins when you sign the contract.
"Clear" business days means you do not count the day you sign, and you do not count weekends or public holidays. So if you sign on a Monday with no public holidays that week, your three clear business days are Tuesday, Wednesday and Thursday, and your right to cool off runs to the end of that Thursday.

Because the maths depends on weekends and public holidays, always have your conveyancer or lawyer confirm the exact final day and time for your contract rather than counting it yourself.

The penalty if you withdraw

If you use the cooling-off period to pull out, you are entitled to a full refund of any money you paid, less $100 or 0.2% of the purchase price, whichever is greater. For a typical residential price the 0.2% figure is the one that applies, because it is larger than $100:

On a $600,000 purchase, the penalty is $1,200 (0.2% of $600,000).
On a $700,000 purchase, the penalty is $1,400 (0.2% of $700,000).

The flat $100 floor only bites on very low-value purchases, where 0.2% would be less than $100. The rest of any deposit or holding money is returned to you.

How to exercise the cooling-off period

To cool off, you must give the seller (or their estate agent) written notice that you are ending the contract, and it must be given before the 3 clear business days expire. Simply going quiet is not enough; the notice must actually be delivered in time. Your conveyancer or lawyer normally prepares and serves this notice for you, which is another reason to have them engaged before you sign, not after.

When there is no cooling-off period

The cooling-off period does not apply in the following situations. If any of these describes your purchase, you are committed as soon as the contract is signed, with no statutory window to withdraw:

Auction purchases: property bought at a public auction, or within 3 clear business days before or after a public auction. If you buy at auction, or sign a contract just before or just after one, there is no cooling-off period.
Commercial or industrial property: property used mainly for industrial or commercial purposes.
Large farms: property over 20 hectares used mainly for farming.
Re-signing the same terms: where you previously signed a contract for the same property on the same terms.
Agent or corporate buyers: where the buyer is an estate agent or a corporate body.

Buying at auction in Victoria? Because there is no cooling-off period at auction, and none in the three clear business days on either side of one, all your checks, including reviewing the Section 32 statement and arranging finance and inspections, must be done before you raise your hand. You cannot rely on a cooling-off window that does not exist.

The Section 32 statement and your right to rescind

The cooling-off period is separate from, and sits alongside, another important Victorian protection: the Section 32 vendor statement. Before you sign, the seller must give you a signed Section 32 statement disclosing the property's title, easements and covenants, planning zone and overlays, outgoings, connected services and more, under the Sale of Land Act 1962 (Vic). If that statement is false, incomplete, or was not given, a purchaser may have a right to rescind (end) the contract before settlement, which can extend well beyond the three-day cooling-off window. The two rights are worth understanding together, because the cooling-off period is short while the Section 32 rescission right addresses defective disclosure. The statement and the rescission right are covered in full in the Section 32 vendor statement guide.

Victoria versus New South Wales

Cooling-off rules are set state by state, and Victoria's are not the same as New South Wales'. The headline difference is length:

Victoria: 3 clear business days, penalty of $100 or 0.2% of the purchase price, whichever is greater.
New South Wales: 5 business days, penalty of 0.25% of the purchase price.

Both states remove the cooling-off period entirely for auction purchases. If you are comparing states, see our NSW cooling-off period guide and the cooling-off period by state comparison, which sets out every state and territory side by side.

Practical tips for Victorian buyers

Do your checks before you sign. Three clear business days is not long enough to arrange finance, a building and pest inspection and a full contract review from scratch. Read the Section 32 statement and have it reviewed before you sign.
Know your exact deadline. Ask your conveyancer to confirm the final day and time in writing, allowing for weekends and public holidays.
Remember auctions carry no cooling-off period. If you might bid, complete all due diligence beforehand.
Serve notice properly if you withdraw. Written notice to the seller or their agent, delivered before the period expires, is what actually ends the contract.

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Conveyancing Explained provides general information about property transactions in Australia. It is not legal advice and does not create a client relationship. For advice on your situation, engage a licensed conveyancer, settlement agent, or property solicitor in your state or territory.