Cooling off gives an eligible purchaser a short period after signing a private-sale contract to reconsider the purchase. It is not a general right to withdraw from any property contract. The purchaser must give written notice to the vendor or the vendor's agent within the statutory period and comply with the applicable requirements.
If the purchaser validly cools off, the vendor is generally entitled to retain the greater of $100 or 0.2% of the purchase price from the money paid, and the balance must be refunded. The right does not apply to a purchase at public auction or within three clear business days before or after a publicly advertised auction of the property. Other exclusions include certain commercial or industrial property, rural land exceeding 20 hectares used mainly for farming, some repeat contracts for the same property and purchases by specified corporate or real estate industry buyers.
A cooling-off right is different from a contractual condition, such as finance approval or a satisfactory building report. A purchaser who has no cooling-off right may still be able to end the contract if a properly drafted contractual condition is not satisfied, but only in accordance with that condition.
This is the kind of matter CMK Legal's property and conveyancing team handles.
Check the exact signing date, the auction history, the purchaser's legal status and the property type. Do not assume an email or phone call is enough: obtain advice on the required notice and make sure it is served before the deadline.
Law referenced: Sale of Land Act 1962 (Vic) s 31; Consumer Affairs Victoria guidance on private sales.