Backing out of a property purchase in Victoria after signing a Section 32 and a contract of sale is difficult and carries significant consequences. As of December 2025, the process is governed by the contract terms and Victorian legislation, and generally requires valid legal grounds.
Currently in Melbourne, the standard 3-5 week inspection period allows buyers to conduct due diligence – building and pest inspections, legal reviews, and finance approval. Once this period concludes, the contract becomes binding. While a ‘cooling-off’ period exists for auctions, it’s not standard for private treaty sales, which are common in the Eastern Suburbs. If a buyer attempts to withdraw without a valid reason (like a failed finance clause or a significant undisclosed property defect), they risk forfeiting their deposit, potentially 10% of the purchase price. Sellers in 2026 are increasingly relying on comprehensive contracts and thorough disclosure statements to minimise these risks. Fletchers’ process emphasises clear communication and detailed property preparation, including professional photography (typically $500-$1,500) and styling (ranging from $2,000 to $8,000) to accurately represent the property and reduce the likelihood of post-contract disputes. The market in December 2025 shows buyers are prioritising properties with clear presentation and renovation potential, meaning accurate representation is vital.
Successfully withdrawing from a Victorian property purchase is complex and requires legal advice; the contract of sale is the governing document.