The cooling-off period exists as consumer protection, giving you time to review the contract thoroughly and seek legal advice if needed. If you withdraw during this period, you must provide written notice and pay a penalty of $100 or 0.2% of the price, whichever is greater — the seller returns the remaining deposit. Cooling-off doesn't apply to: auction purchases; properties bought within 3 business days before or after an auction; industrial or commercial properties; farms exceeding 20 hectares; repeat contracts with identical terms; or purchases by estate agents or corporate entities. Don't leave it until the last minute — you must notify your conveyancer early enough for them to communicate your decision to the seller before the 5pm deadline; simply telling your conveyancer by that time isn't enough.
At a glance
| Rule | Victoria |
|---|---|
| Cooling-off window | Three clear business days |
| Penalty to withdraw | $100 or 0.2% of the price, whichever is greater |
| When it doesn't apply | Auction purchases; properties bought within 3 business days before or after an auction; industrial or commercial properties; farms exceeding 20 hectares; repeat contracts with identical terms; or purchases by estate agents or corporate entities |
What the penalty and timeline look like (illustrative)
The penalty is $100 or 0.2% of the price, whichever is greater — so at normal house prices it is the 0.2%. The clock starts the day after you sign, and weekends and public holidays are not counted. For example:
| Purchase price | 0.2% penalty | You sign on | Cooling-off ends |
|---|---|---|---|
| $700,000 | $1,400 | Monday | 5pm Thursday |
| $950,000 | $1,900 | Friday | 5pm Wednesday (weekend excluded) |
| $1,200,000 | $2,400 | Tuesday | 5pm Friday |
This assumes no public holidays fall in the window — a holiday pushes the deadline out by a day.