Cooling Off Period in Victoria: 3 Days, 5 Costly Exceptions

The cooling off period in Victoria gives you 3 clear business days after you sign a private sale contract to change your mind and walk away. It isn’t free. You lose $100 or 0.2% of the price, whichever is more, and it doesn’t apply at all if you buy at auction or close to one.

Below I cover how long the cooling off period is, what it costs, how to use it, the 5 situations where you don’t get one, and why I’d rather you never need it.

Key points

You have 3 clear business days from the day you sign, not the day the seller signs.
Weekends and public holidays don’t count, so Melbourne Cup Day can push your deadline out.
Cooling off costs the greater of $100 or 0.2% of the price. On an $800,000 home that’s $1,600.
You cool off by giving written notice to the seller or the seller’s agent. You don’t need a reason.
There’s no cooling off at auction, within 3 clear business days before or after an advertised auction, or when you buy through a company.

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How Long Is the Cooling Off Period in Victoria?

It’s 3 clear business days, under section 31 of the Sale of Land Act 1962. Consumer Affairs Victoria says the period starts from the date you sign the contract, not the date the seller signs it. It covers residential property, and rural property under 20 hectares, bought by private sale.

“Clear” means the day you sign doesn’t count. Saturdays, Sundays and public holidays don’t count either. Melbourne Cup Day, Tuesday 3 November 2026, is a public holiday in metropolitan Melbourne, so a contract signed on Monday 2 November gives you Wednesday, Thursday and Friday. Ask your conveyancer to confirm the exact deadline the day you sign.

How Much Does It Cost to Cool Off?

If you cool off, the seller can keep $100 or 0.2% of the purchase price, whichever is greater. Everything else you’ve paid comes back to you. At Inner North prices, 0.2% is always the bigger number:

$600,000 apartment: $1,200
$800,000 townhouse: $1,600
$1,200,000 house: $2,400

That’s a real cost, though it’s small next to buying the wrong property. It also doesn’t cover any money you’ve spent on inspections or legal fees before you pulled out.

How Do You Cool Off on a Property in Victoria?

You give written notice to the seller or the seller’s agent before the period ends. You don’t have to give a reason. Email works, but get confirmation that it was received, and keep a copy.

Tell your conveyancer before you send anything. They can word the notice, check the deadline and deal with the refund of your deposit, less the amount the seller is allowed to keep.

When Doesn’t the Cooling Off Period Apply? 5 Exceptions

Consumer Affairs Victoria lists the situations where you have no right to cool off. These are the ones that catch buyers out:

1. You buy at auction, or close to one

There’s no cooling off when you buy at a public auction. It also doesn’t apply if you sign within 3 clear business days before or after a publicly advertised auction. That includes buying the property before auction day, or negotiating with the agent after it’s passed in. See CAV’s guide to buying at auction.

2. The property is mainly commercial or industrial

Shops, offices and warehouses used mainly for commercial or industrial purposes don’t carry a cooling off period.

3. It’s a farm over 20 hectares

Farming land over 20 hectares, used mainly for farming, is excluded.

4. You signed a contract for the same property before

If you previously signed a contract for the same property on substantially the same terms, you don’t get a second cooling off period.

5. You’re an estate agent or you buy through a company

Cooling off doesn’t apply when the buyer is an estate agent or a corporate body. If you’re buying through a company, including a self-managed super fund with a corporate trustee, plan on having no cooling off period at all.

One rule you may still see in older guides: getting legal advice before you sign no longer takes away your right to cool off. That exception was removed in 2012.

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Is a Cooling Off Period the Same as a Finance or Building Clause?

No. Cooling off is a right the law gives you on most private sales, and it ends after 3 clear business days whatever happens. A finance clause or a building inspection clause is a special condition you negotiate into the contract, with its own deadline and its own terms.

If your loan approval or building report won’t be ready within 3 business days, cooling off won’t protect you. Ask for the condition in the contract before you sign, and have your conveyancer check the wording.

What I Tell Buyers Before They Sign a Private Sale

Treat cooling off as a safety net, and do your checks before you sign. On a $1.2 million Preston house, changing your mind costs $2,400, and at auction you can’t change your mind at all.

Before my clients sign, their conveyancer has read the section 32 and the contract, they have pre-approval from their lender, and the building inspection is done or written into the contract. If you’re buying your first home, my first home buyer guide covers the schemes and the steps to take before you inspect.

Frequently Asked Questions

How long is the cooling off period in Victoria?

3 clear business days from the day you sign the contract. The day you sign, weekends and public holidays don’t count.

How much do you lose if you cool off in Victoria?

The seller can keep $100 or 0.2% of the purchase price, whichever is greater. On an $800,000 property that’s $1,600. The rest of what you’ve paid is refunded.

Is there a cooling off period at auction in Victoria?

No. There’s no cooling off if you buy at a public auction, or if you sign within 3 clear business days before or after a publicly advertised auction.

How do I cool off on a property contract?

Give written notice to the seller or the seller’s agent before the 3 clear business days end. You don’t need to give a reason. Speak to your conveyancer first and keep proof the notice was received.

Does the cooling off period apply if I buy through a company?

No. Cooling off doesn’t apply when the buyer is a corporate body or an estate agent, so a purchase through a company, including an SMSF with a corporate trustee, has no cooling off period.

The cooling off period in Victoria is short and it costs money to use. Know your deadline the day you sign, and do the checks that matter before you sign rather than after.