Generally, getting out of a property contract in Victoria after signing is difficult, as it’s a legally binding agreement. However, there are specific circumstances where rescission – cancellation of the contract – may be possible, or where a vendor might be able to legitimately terminate.
As of December 2025, the most common route involves a ‘subject to sale’ clause, included during negotiation. This allows the buyer to terminate if they cannot sell their existing property. However, this is less favoured currently in Melbourne, particularly in the Eastern Suburbs where demand remains relatively strong. A solicitor’s advice is crucial here. Other grounds, such as fraudulent misrepresentation by the other party, or a significant defect discovered during the building and pest inspection period (typically 10-14 days), may also allow for termination. Currently in Melbourne, buyers are increasingly thorough with inspections, and vendors are proactively disclosing known issues to avoid later disputes. The cooling-off period, typically three business days, allows buyers to withdraw, but incurs a penalty of 0.25% of the purchase price. Vendors can terminate if the buyer defaults on a payment or fails to fulfil a contractual obligation. In 2026, we anticipate continued scrutiny of contracts, with buyers and vendors alike seeking clear and comprehensive documentation. Preparing your property for sale with professional photography (typically $500-$1,500) and styling ($2,000-$8,000) can minimise potential issues arising from perceived defects.
Successfully navigating contract termination requires legal expertise and a thorough understanding of Victorian property law.