The cooling-off period in Victoria gives buyers a limited timeframe after signing a contract of sale to withdraw from the purchase, subject to a penalty. It’s a standard part of the property transaction process designed to offer buyers some recourse after making a significant financial commitment.
As of December 2025, the cooling-off period is typically three business days, commencing the day after the contract is signed. It applies to most sales made by private treaty, which are common in Melbourne’s Eastern Suburbs – areas like Balwyn and Doncaster where family homes are in high demand. During this period, a buyer can rescind the contract, however, they forfeit 0.25% of the purchase price to the vendor. It’s important to realise that cooling-off periods don’t automatically apply to properties sold at auction, or to properties with a ‘section 32’ statement that explicitly states the cooling-off period doesn’t apply. In 2026, we anticipate continued buyer caution, meaning the cooling-off period will remain a relevant consideration for sellers. Vendors should prepare for the possibility of a rescission, even in a market with moderate growth of 3-6% forecast. Fletchers’ client update technology ensures vendors are immediately informed of any cooling-off period activity.
The cooling-off period provides a short window for buyers to finalise due diligence, but it also introduces a degree of uncertainty for sellers.