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, and the seller returns the remaining deposit. Cooling-off doesn't apply to: purchases at a publicly advertised auction; properties bought within 3 business days before or after a publicly advertised auction; industrial or commercial properties; farms exceeding 20 hectares; repeat contracts with substantially the same terms; or purchases by estate agents or corporate entities. Don't leave it until the last minute. Your written notice must reach the seller or their agent within the three clear business days, so give your conveyancer enough time to pass it on.
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 | Purchases at a publicly advertised auction; properties bought within 3 business days before or after a publicly advertised auction; industrial or commercial properties; farms exceeding 20 hectares; repeat contracts with substantially the same 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 | End of Thursday |
| $950,000 | $1,900 | Friday | End of Wednesday (weekend excluded) |
| $1,200,000 | $2,400 | Tuesday | End of Friday |
This assumes no public holidays fall in the window, and a holiday pushes the deadline out by a day.
