In a Victorian private sale, the deposit amount and settlement terms are flexible and negotiated between the vendor and buyer. Once the contract is signed, the buyer has a 3-day cooling-off period, during which they can withdraw, though this may result in a partial loss of the deposit.
Private treaty sales allow for significantly more negotiation around deposits than auctions. This flexibility is frequently utilised for properties with higher price ranges ($3M+) or lifestyle properties across the Mornington and Bellarine Peninsulas.
Deposit flexibility and negotiation
Vendors can accept, reject, or counter offers at any time during a private campaign. This allows for customisation of deposit amounts and settlement dates to suit the vendor’s financial position or the buyer’s constraints.
The 3-day cooling-off period
Unlike auctions, private sales in Victoria include a 3-day cooling-off period for the buyer after the contract is signed. If a buyer exercises this right, the sale does not proceed, and the vendor may retain a portion of the deposit.
Market pressures on buyer deposits
Listed stock competition is rising as more vendors gain confidence, which increases buyer leverage. We are seeing some buyers push for lower deposits as they navigate the reduced buyer pool caused by 2026 rate hikes.
The CGT timing risk
The Capital Gains Tax (CGT) event is triggered on the date the contract is signed, not the settlement date. Vendors aiming to settle in a different financial year to lower their tax liability must be careful, as the signature date determines the tax year.
Frequently asked questions
Can I negotiate a higher deposit in a private sale?
Yes. Because private treaty processes are more flexible on deposit amounts and settlement terms than auctions, vendors can negotiate these specifics when countering a buyer’s offer. This is common for higher-value properties or those with complex settlement requirements.
What happens if a buyer pulls out during cooling-off?
In Victoria, buyers in a private sale have a 3-day cooling-off period after signing the contract. If they withdraw during this window, the contract is cancelled, and the buyer may forfeit a small percentage of the deposit to the vendor.
Why are Melbourne investors divesting in 2026?
Investors are reacting to the cumulative effect of land tax rises, VRLT expansion, the Short Stay Levy, and reduced landlord flexibility due to tenancy law reforms. Many who were pushed into unsustainable negative cash flow by 2022–2023 RBA rate rises are now exiting.
How does the Short Stay Levy affect my property’s value?
For non-PPR properties, a fixed charge component of the Emergency Services and Volunteers Fund Levy increases from 1 July 2026. These ongoing costs, alongside Victoria’s heavy property tax burden in 2026, can compress net rental yields and influence buyer offers.
When should I sign the contract to save on CGT?
To minimise tax, consider signing the contract during a low-income year, such as during retirement or part-time work. Because the CGT event is the contract signing date, not the settlement date, the timing of the signature is the critical factor.
Questions to ask your agent
- How is the current increase in listing competition in the eastern suburbs affecting the deposit amounts buyers are offering?
- Given my current income, should we aim to sign the contract before 30 June 2026 to potentially lower my CGT liability?
- Are you seeing an increase in owner-occupier interest in this area due to the current divestment by investors?
This article contains general market information based on data current as at April 2026. It does not constitute financial, legal, or real estate advice specific to your property or circumstances. For an appraisal and tailored advice, speak with a Fletchers agent in your area.