Information Centre · Property & Conveyancing
Cooling-Off Rights When Buying Property in Victoria Explained
Who can cool off under section 31 of the Sale of Land Act 1962 (Vic), how the three clear business days are counted, how a purchaser-signed notice must be served, and what happens to the deposit. General information only, not legal advice.
Key points
- Where section 31 of the Sale of Land Act 1962 (Vic) applies, a purchaser may end the contract for any reason by a notice the purchaser has signed, given or left within three clear business days after the purchaser signed the contract.
- A business day excludes Saturdays, Sundays and any day the whole or part of which is observed as a public holiday throughout Victoria; the signing day is not counted, so a Monday signing with no statewide holiday gives Tuesday, Wednesday and Thursday.
- The signed notice may be given to the vendor, the vendor's agent or the estate agent engaged to sell the land, or left at the vendor's contract address for service, the agent's address or the estate agent's address; a phone call or verbal message is not enough.
- If the contract lacks the conspicuous cooling-off notice required by section 31(6), section 31(7) lets the purchaser rescind at any time before becoming entitled to possession or rents and profits, which is separate from the three-day right.
- After valid termination the purchaser recovers all money paid except the greater of $100 or 0.2% of the price: on a $900,000 purchase with $45,000 paid, the vendor may retain $1,800 and $43,200 is refundable.
- Section 31 does not apply to land used primarily for industrial or commercial purposes, farming land over 20 hectares, publicly advertised auction sales and sales on, or within three clear business days before or after, the auction day, repeat contracts between the same parties in substantially the same terms, or estate-agent and corporate-body purchasers.
- Any term excluding, modifying or restricting the right is void; the period cannot be changed, though a vendor may separately agree in writing to a later termination. Cooling off is not a finance or inspection condition.
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Cooling off gives some Victorian property purchasers a short statutory window to walk away from a contract for any reason. The window is narrow, the exclusions are technical, and the notice must be signed and delivered in a way the statute recognises. Mistakes about any of these can invalidate the notice or put reliance on it in doubt.
This guide explains the right under section 31 of the Sale of Land Act 1962 (Vic) as at 25 September 2026: eligibility, counting the three clear business days, signing and serving the notice, the separate right that arises where the contract omits the required cooling-off notice, the amount the vendor may retain, the exclusions, and what to do immediately if you want to end a contract.
Wider buying topics are covered in our guides on buying property in Victoria, buying at auction and Section 32 vendor statements, which are linked where relevant rather than repeated.
Who has the right
Section 31 applies to a contract for the sale of land, with any chattels, other than land used primarily for industrial or commercial purposes and land of more than 20 hectares used primarily for farming. Within that scope, section 31(2) allows a purchaser who has signed the contract to give notice to the vendor, before the expiration of three clear business days after signing, that the purchaser wishes to terminate. Where the purchaser has signed that notice and given it in accordance with the section, the contract is terminated.
No reason is needed. The right belongs to the purchaser, not the vendor, and it is removed entirely where one of the exclusions in section 31(5) applies, including auction sales and corporate purchasers. These are explained below.
Counting the three clear business days
Section 30 defines a business day as any day except a Saturday or Sunday, or any other day the whole or any part of which is observed as a public holiday throughout Victoria. The period is three clear business days, so the day on which the purchaser signed is not counted.
Example 1: no public holiday. A purchaser signs on a Monday. No statewide public holiday falls in the following days. Tuesday, Wednesday and Thursday are the three clear business days. The signed notice must be validly given or left within that period.
Example 2: a statewide public holiday. A purchaser signs on Friday 5 June 2026. Saturday 6 and Sunday 7 June are excluded, and Monday 8 June 2026 is the King's Birthday, a public holiday observed throughout Victoria. The three clear business days are Tuesday 9, Wednesday 10 and Thursday 11 June 2026.
Take care with Melbourne Cup Day and similar days. Melbourne Cup Day is not observed throughout Victoria, because some councils substitute a different local holiday. Whether a particular day counts depends on the statutory test, not on whether it is a holiday where the purchaser lives.
The Act does not set a cut-off time such as 5 pm on the final day. However, the contract's notice provisions, office hours at the recipient's address and questions about when an email or delivery was received can all create risk near the end of the period. Aim to serve the notice well before the final day.
Signing dates and contract formation
Section 31 counts from the day the purchaser signed the contract. Whether a binding contract has been formed is a separate question of contract law. In a typical private sale, the purchaser signs first, which operates as an offer, and a contract is formed only when the vendor accepts.
- Purchaser signs and vendor accepts on the same day: the period runs from that day.
- Purchaser signs and vendor accepts later: the period still runs from the purchaser's signing, so part or all of it may pass before the vendor signs. Until acceptance there is ordinarily no concluded contract, and a purchaser may be able to withdraw the offer under general contract principles, which is a different step from cooling off.
- Vendor rejects or counteroffers: a change to price or terms may amount to a counteroffer rather than acceptance. If the purchaser later signs or initials the changed terms, questions arise about when the purchaser “signed” the operative contract.
- Several purchasers sign at different times: the relevant signing date may be disputed. Counting from the earliest signature is the cautious approach.
- Electronic signatures on different dates: the platform's audit trail usually records when each party signed. Retain it, because it may decide the calculation.
Where the chronology is anything other than simple, the documents and communications should be examined before the deadline is assumed.
The purchaser-signed notice
Section 31(2) requires more than written notice. The contract is terminated where the purchaser has signed the notice and given it in accordance with the section. A clear notice should identify the property, the contract (parties and date) and the purchaser's decision to terminate under section 31 of the Sale of Land Act 1962 (Vic).
The safest practice is for every purchaser named in the contract to sign the notice. Section 30 provides that “purchaser” includes a person acting as agent for the purchaser, but a lawyer, relative or buyer's advocate should not simply sign in the purchaser's place without first confirming their authority and how the statutory wording applies. If a purchaser is overseas or unavailable, raise it immediately so the method of signing can be settled in time.
Electronic signatures may be capable of satisfying a signature requirement under the Electronic Transactions (Victoria) Act 2000 (Vic) if its conditions are met, including conditions about identifying the signatory, the reliability of the method and consent. Where time permits, a handwritten signature on a notice that is then scanned and delivered, alongside a verifiable electronic signature, reduces argument.
Who can receive the notice
Section 31(3) provides that the signed notice must, within three clear business days after the purchaser signed the contract, either:
- be given to the vendor, an agent of the vendor, or the estate agent engaged or appointed by the vendor to sell the land; or
- be left at the vendor's address for service specified in the contract, the address of the vendor's agent, or the address of the estate agent engaged or appointed by the vendor to sell the land.
The selling estate agent is now an expressly authorised recipient. The estate agent was added to section 31(3) in 2017, and section 31A validates earlier notices given to an estate agent in accordance with the amended provision, while preserving the rights of the parties in the Supreme Court proceeding known as Tan v Russell and in other proceedings about such notices already commenced at that time.
Section 15(1) separately provides that a written notice required or authorised by the Act is sufficiently served on a person if it is (a) served personally or left at the person's last known place of abode in Victoria, or (b) served personally or by post on the person's legal practitioner or conveyancer named in the contract or otherwise authorised by the person to act in the particular matter. Section 15 is limited to those methods: it does not validate every form of delivery to a lawyer or conveyancer, and it says nothing about email. The vendor's named lawyer or conveyancer is a sensible additional recipient, but only personal service or post engages section 15. Where post is used, service must still be achieved within the statutory period, so post alone is risky close to the deadline.
Email and electronic notice
It helps to separate four situations:
- A signed written notice given or left in accordance with section 31(3) is the statutory method.
- A telephone call or purely verbal message is not a signed notice and is insufficient.
- Email or other electronic delivery is a separate question from section 15. It may be effective, but that depends on whether it gives or leaves the signed notice as section 31 requires, what the contract says about electronic notices and addresses, the Electronic Transactions (Victoria) Act 2000 (Vic), the recipient's authority, and proof of when the notice was sent and received. Neither universal validity nor universal invalidity should be assumed.
- Serving more than one authorised recipient (for example the selling agent by hand and email, and the vendor's lawyer by email) by methods that can be proved is prudent and costs little.
Keep the signed notice, sent emails with attachments, delivery records and any acknowledgement.
If the contract omits the cooling-off notice
Section 31(6) requires a contract to which section 31 applies to contain a conspicuous notice advising the purchaser that they may, within three clear business days after signing, give notice that they wish to terminate. This is a substantive statutory requirement, not a formatting detail.
If the notice is missing, section 31(7) allows the purchaser to rescind the contract at any time before becoming entitled to possession or to the receipt of rents and profits. That right is distinct from ordinary cooling off and may remain available long after the three clear business days have passed, often until settlement.
Whether a notice is present, and whether it is conspicuous enough, can be contested. If you think the notice is missing or inadequate, obtain urgent legal advice before taking any step that affects your position.
What the vendor may retain
Section 31(4) provides that after a valid termination the purchaser is entitled to the return of all money paid under the contract except the greater of $100 or 0.2% of the purchase price, which the vendor may retain.
Worked example
- Purchase price: $900,000
- 0.2% of $900,000 = $1,800 (greater than $100)
- Money paid by the purchaser: $45,000
- Vendor may retain: $1,800
- Refundable: $45,000 − $1,800 = $43,200
This assumes the contract was validly terminated under section 31.
Section 31(4) is framed as a retention from money paid. It does not, in its terms, give the vendor a separate debt claim where less than the retained amount has been paid; if that arises, advice should be taken on the facts. Where a deposit is held by an estate agent, lawyer or conveyancer, notify the stakeholder promptly so the refund can be processed. The Act does not fix a number of days for the refund, and a dispute about validity can delay release.
A purchaser who tries to end the contract outside section 31, or after the period has expired, may instead be treated as in default and face very different consequences, including loss of the deposit and a damages claim.
Statutory exclusions
Section 31 does not apply to land used primarily for industrial or commercial purposes, or to land of more than 20 hectares used primarily for farming (both limbs are required). Under section 31(5), it also does not apply where:
- the sale is by publicly advertised auction;
- the land is sold within three clear business days before the day on which a publicly advertised auction of that land is to be held, on the day on which it is held, or within three clear business days after the day on which it was held;
- the vendor and purchaser have previously entered into a contract for the sale of the same land in substantially the same terms; or
- the purchaser is an estate agent within the meaning of the Estate Agents Act 1980 (Vic), or a corporate body.
Mixed-use and rural land. A shop with a dwelling above, or a lifestyle block, turns on its primary use, which is a question of fact. Rural land of 20 hectares or less, or larger land not used primarily for farming, is not excluded on that ground.
Earlier contracts. The repeated-contract exclusion requires that the same vendor and purchaser have previously entered into a contract for the same land in substantially the same terms. A purchaser-signed offer that was never accepted is not automatically such a contract; whether one was formed depends on the documents and communications.
Auctions. The auction exclusions and bidding process are covered in our guide to buying property at auction in Victoria.
Companies, trusts and nominees
The exclusion for a corporate body in section 31(5)(d) generally captures a company or other incorporated purchaser. It should not be confused with an owners corporation or “body corporate” in a strata scheme.
A trust is not ordinarily itself the contracting party. The question is who the named purchaser is: a company acting as trustee (including the corporate trustee of a self-managed superannuation fund) is a corporate body, while individual trustees are not. Nomination clauses do not change the statutory eligibility of the purchaser who signed the contract, and a nomination carries its own contract and duty consequences. The purchasing entity should be settled with advice before signing.
Waiver and extension
Section 31(8) makes void any provision in the contract or in another document that excludes, modifies or restricts a right conferred on the purchaser by section 31.
The statutory period itself is always three clear business days. A vendor may separately agree to give the purchaser an additional contractual right to terminate, to accept a later termination, or to rescind by agreement. These are contractual arrangements; they do not change section 31. Any such arrangement should be unequivocal, in writing, signed by or on behalf of the vendor, and in place before the statutory deadline. An informal assurance from an estate agent that the vendor “won't mind” a late notice does not extend the statutory right.
Cooling off compared with other exit rights
Cooling off is only one route out of a contract. The table is a high-level summary; each right has its own conditions.
| Right | Source | Trigger | Basic timing |
|---|---|---|---|
| Ordinary cooling off | Sale of Land Act s 31(2)–(4) | Any reason, if s 31 applies and no exclusion does | Within three clear business days after the purchaser signs |
| Missing cooling-off notice | Sale of Land Act s 31(6)–(7) | Contract lacks the required conspicuous notice | Any time before the purchaser is entitled to possession or rents and profits |
| Finance condition | Contract special condition | Loan not approved, as defined in the condition | By the date and method stated in the condition |
| Building, pest or due-diligence condition | Contract special condition | As defined in the condition (for example, an unsatisfactory report) | By the date and method stated in the condition |
| Vendor statement rescission | Sale of Land Act s 32K | False or missing information in, or failure to give, a signed Section 32 statement, subject to the s 32K(4) court exception | Before the purchaser accepts title and becomes entitled to possession or rents and profits |
| Destruction or damage | Sale of Land Act s 34 | Dwelling-house destroyed or damaged so as to be unfit for occupation before the purchaser is entitled to possession or rents and profits | Written notice to the vendor or their lawyer or conveyancer within 14 days after becoming aware |
| Off-the-plan rights | Sale of Land Act Pt I (including s 9AE and the sunset provisions) | Specified off-the-plan events, such as a plan not registering in time | As provided by each provision |
| Contractual or general-law termination | Contract terms and general law | Serious breach, misrepresentation or other recognised grounds | Depends on the ground and the contract |
For more detail, see our guides on Section 32 vendor statements and rescission, building and pest inspection conditions, off-the-plan purchase rights and finance and other conditions when buying property.
Urgent purchaser checklist
If you want to end a contract you have just signed:
- Record exactly when each purchaser signed, including any electronic audit trail.
- Obtain the complete signed contract and Section 32 statement.
- Check whether the property was advertised for auction and on what date.
- Confirm the land use, the land area and the identity of each purchaser.
- Check whether the same parties previously entered into a similar contract for the land.
- Inspect the contract for the conspicuous section 31 cooling-off notice.
- Calculate the period using the section 30 business day definition.
- Prepare an unequivocal notice signed by every purchaser.
- Serve it using one or more section 31(3) pathways (and, if also using section 15, personal service or post on the vendor's named lawyer or conveyancer); treat any email as additional, not a substitute.
- Keep sent items, attachments, delivery evidence and acknowledgements.
- Notify the stakeholder holding the deposit.
- Obtain immediate advice if validity is disputed or the period may have expired.
Settlement mechanics, including electronic conveyancing through PEXA, are not affected by cooling off, but a terminated contract should be withdrawn from any workspace already opened.
Current law and 2026 reforms
This guide states the law in force on 25 September 2026. The Consumer Legislation Amendment Act 2026 (Vic) (No. 36 of 2026) received Royal Assent on 8 September 2026. Its Sale of Land Act 1962 (Vic) amendments commence as follows:
- Already operative: the off-the-plan amendment in Division 2 of Part 9 (section 113A, inserting section 9AEA(3)) commenced on 9 September 2026, the day after Royal Assent.
- Not yet operative: Division 1 of Part 9 (making the Section 32 statement available from a “sale availability time”, written notice of changes, and related amendments to sections 30, 32, 32K and 32L) commences on a day to be proclaimed, or on 1 June 2027 if not proclaimed earlier. The deposit-release amendments (sections 106 to 108, including new sections 26A and 26B) commence on a day to be proclaimed, or on 1 July 2027 if not proclaimed earlier.
The Act does not amend section 31, so the cooling-off right described in this guide is unchanged. Once the Section 32 changes commence, they will affect when purchasers receive vendor disclosure, which our Section 32 guide addresses.
Frequently asked questions
How long is the cooling-off period in Victoria?
Where section 31 of the Sale of Land Act 1962 (Vic) applies, the purchaser may end the contract by a signed notice given or left within three clear business days after the purchaser signed the contract. The day of signing does not count, and Saturdays, Sundays and any day the whole or part of which is observed as a public holiday throughout Victoria are not business days. If a purchaser signs on a Monday and no statewide public holiday intervenes, the three clear business days are Tuesday, Wednesday and Thursday.
Does the purchaser have to sign the cooling-off notice?
Yes. Section 31(2) terminates the contract where the purchaser has signed the notice and given it in accordance with the section. The safest course is for every purchaser named in the contract to sign the notice. If a purchaser cannot sign in time, or someone else is proposed to sign on their behalf, the authority and the statutory wording should be checked urgently before relying on that method.
Who can receive the cooling-off notice?
Under section 31(3), the signed notice may be given to the vendor, an agent of the vendor, or the estate agent engaged or appointed by the vendor to sell the land. Alternatively, it may be left at the vendor's address for service specified in the contract, the address of the vendor's agent, or the address of that estate agent. Section 15(1) separately provides that a written notice under the Act is sufficiently served if it is served personally on the vendor or left at the vendor's last known place of abode in Victoria, or if it is served personally or by post on the vendor's legal practitioner or conveyancer named in the contract or otherwise authorised by the vendor to act in the matter. Section 15 does not itself validate email or other electronic delivery.
Can a cooling-off notice be sent by email?
Possibly, but not safely by assumption. Email is a means of delivery, not a substitute for a signed notice. Whether an emailed notice is effective can depend on the signature on the notice, the Electronic Transactions (Victoria) Act 2000 (Vic), the contract's terms about electronic notices and addresses, and proof of when it was sent and delivered. A telephone call or purely verbal message is not enough. Prudent practice is to send a signed notice to more than one authorised recipient by methods that can be proved, well before the deadline.
Does cooling off apply before or after an auction?
Not in the auction windows. Section 31(5) excludes a sale by publicly advertised auction, and a sale within three clear business days before the day of a publicly advertised auction of that land, on the auction day, or within three clear business days after the auction was held. A contract signed outside those windows is not excluded merely because the property was once offered at auction.
Does a company purchaser receive cooling-off rights?
No. Section 31(5)(d) excludes a purchaser that is a corporate body, which generally means a company or other incorporated purchaser. It also excludes a purchaser who is an estate agent within the meaning of the Estate Agents Act 1980 (Vic). Whether a trust purchase is excluded depends on who the named purchaser is: an individual trustee is assessed differently from a corporate trustee.
What if the contract omits the cooling-off notice?
Section 31(6) requires a contract to which section 31 applies to contain a conspicuous notice advising the purchaser of the right to end the contract within three clear business days. If that notice is missing, section 31(7) allows the purchaser to rescind at any time before becoming entitled to possession or to receipt of rents and profits. This is a separate and potentially much longer right than ordinary cooling off, and it should be assessed urgently by a lawyer.
How much does the vendor retain if I cool off?
After a valid termination under section 31, the purchaser is entitled to the return of all money paid under the contract except the greater of $100 or 0.2% of the purchase price, which the vendor may retain. On a $900,000 purchase, 0.2% is $1,800. If the purchaser had paid $45,000, the vendor may retain $1,800 and $43,200 is refundable.
Can the three-day cooling-off period be extended?
The ordinary cooling-off period under section 31(2) remains three clear business days, and a term that excludes, modifies or restricts the purchaser's section 31 rights is void. Separately, if the conspicuous notice required by section 31(6) is missing, section 31(7) gives the purchaser a distinct statutory right to rescind before becoming entitled to possession or to receipt of rents and profits; that is not a contractual extension. A vendor may, however, separately agree to give the purchaser a contractual right to terminate later, or agree to a later rescission. That is a contractual arrangement, not an extension of section 31, and it should be documented clearly in writing and signed before the statutory deadline. An informal assurance from an agent does not extend the statutory right.
Does cooling off depend on finance approval?
No. Cooling off does not depend on finance, a building inspection or any other condition, and the period does not pause while a purchaser waits for a loan approval or report. Finance and inspection protections come from special conditions in the contract, each with its own wording, notice requirements and deadlines.
What if I signed an earlier contract for the same property?
Section 31(5)(c) excludes cooling off where the vendor and purchaser have previously entered into a contract for the sale of the same land in substantially the same terms. The test is whether an earlier contract was actually entered into, not merely whether the purchaser signed an earlier document. An earlier signed offer that the vendor never accepted is not automatically the same thing, so the documents and chronology need to be examined.
What should I do if the deadline may already have passed?
Get legal advice immediately and do not assume the position is lost. The calculation may turn on the exact signing date, whether a statewide public holiday intervened, or when the contract was actually formed. Other rights may also be available, including rescission under section 31(7) if the cooling-off notice is missing from the contract, rescission under section 32K for vendor statement defects, or a finance or inspection condition. Keep every document and message in the meantime.
Does cooling off apply to off-the-plan purchases?
It can. Section 31 applies to an off-the-plan contract in the same way as any other contract for the sale of land, subject to the ordinary exclusions. Off-the-plan purchases also carry separate statutory rights, including rescission rights and sunset clause protections, which operate independently of cooling off.
Official sources
- Sale of Land Act 1962 (Vic), authorised version (ss 15, 30, 31, 31A, 32–32K, 34)
- Electronic Transactions (Victoria) Act 2000 (Vic)
- Consumer Legislation Amendment Act 2026 (Vic), No. 36 of 2026, as made
- Consumer Affairs Victoria: Buying property by private sale (cooling off)
Current law as at 25 September 2026. Legislation can change; obtain advice on your own contract before acting.
How we can help
Because the window is measured in business days, call us as soon as you decide you may want out. Our conveyancing and property team, including Julian McIntyre, can:
- assess urgently whether section 31 applies to your contract;
- prepare a purchaser-signed cooling-off notice and serve it on the authorised recipients; and
- assess alternative termination or rescission rights where cooling off is unavailable or may have expired.
Property & Conveyancing
Signed a contract and want out? Call before the window closes.
We assess whether section 31 applies, prepare and serve purchaser-signed cooling-off notices, and advise on other termination or rescission rights where cooling off is unavailable or may have expired.
This article is general information only and does not constitute legal advice. Please obtain advice tailored to your circumstances.