A cooling-off period in Victoria gives buyers a limited timeframe after signing a contract of sale to withdraw from the purchase, typically with a financial penalty. It’s a standard part of the property transaction process designed to offer buyers some recourse after making a significant commitment.
As of December 2025, the cooling-off period is generally three business days, although it can be five business days for purchases made at auction or on weekends/public holidays. It’s important to realise that this applies to most private treaty sales, but not to auctions. Currently in Melbourne, particularly in the Eastern Suburbs where competition for family homes is strong, buyers often waive the cooling-off period to make their offer more appealing. Sellers should be aware that if a buyer *does* exercise their cooling-off rights, they forfeit 0.25% of the purchase price plus GST. In 2026, we anticipate continued pressure on buyers to waive this period, especially for well-presented properties in desirable school zones. Preparation costs, such as styling (typically $2,000-$8,000) and professional photography ($500-$1,500), are often undertaken to minimise the risk of a buyer needing to cool off due to concerns about the property’s presentation.
The cooling-off period provides a limited window for buyers to conduct final checks, but it’s not a substitute for thorough due diligence before signing a contract.