At eConvey, we believe in empowering our clients with knowledge. One of the key aspects of property transactions in Victoria is the cooling-off period. Let’s delve into what it means and how it works.

What is the Cooling-off Period?

In Victoria, the cooling-off period is a specific timeframe during which a buyer can legally withdraw from a property purchase without facing significant financial penalties. This period typically lasts for three clear business days, although the exact duration may vary depending on the terms negotiated in the contract of sale.

How Does the Cooling-off Period Work?

The cooling-off period commences once the buyer signs the contract of sale and receives a copy of it. It’s important to note that the seller does not have a cooling-off period.

During the cooling-off period, the buyer has the right to withdraw from the contract by providing written notice to the seller or their agent. This notice must be delivered before the cooling-off period expires.

If the buyer withdraws during the cooling-off period, they are generally required to pay a penalty known as the “cooling-off fee”. This fee is usually a small percentage of the purchase price (typically 0.2%) and is paid to the seller.

Are There Any Exceptions?

Yes, there are certain circumstances where the cooling-off period may not apply. These include if the property is purchased at an auction, if the buyer waives their cooling-off rights in writing, if the property is purchased by an estate agent or a corporate body, or the purchase is for commercial property.

Why Legal Advice is Important

At eConvey, we strongly recommend buyers to seek legal advice before signing a contract of sale and during the cooling-off period to ensure they understand their rights and obligations. While the cooling-off period provides a degree of flexibility, buyers should carefully consider their decision before signing a contract, as withdrawing during the cooling-off period still incurs some financial cost.

eConvey Pulse

In summary, the cooling-off period is a crucial aspect of property transactions in Victoria. It provides buyers with a safety net, allowing them to withdraw from a property purchase within a specific timeframe without facing significant financial penalties. However, it’s essential for buyers to understand their rights and obligations during this period. At eConvey, we’re here to guide you through every step of your property journey, ensuring you’re well-informed and confident. For more information, call us on 03 5976 2700 or visit our website at econvey.com.au.