In Victoria, the Sale of Land Act allows a purchaser who signs a Contract to purchase real estate to terminate the Contract, under certain conditions, and “cool off.”
To be able to effectively “cool off” and terminate the Contract; the Purchaser must satisfy the following:-
1. The Purchaser must notify the Vendor within 3 clear business days from the day the Purchaser signed it.
2. The sale must be for residential land and not other land used primarily for commercial or industrial purposes.
3. The sale must not be for land larger than 20 hectares used primarily for farming.
4. The Purchaser must not have previously entered a Contract for the same property.
5. The Purchaser is not an estate agent or a corporate body (e.g. a company).
6. The sale is not at or within 3 clear business days before or after a publicly advertised auction.
Important to note that “cooling off” also costs the Purchaser money. The Purchaser who cools off must pay $100 or 0.2% of the purchase price, whichever is higher.
If you have any questions about your property purchase or sale, please don’t hesitate to contact our friendly team at Bond Conveyancing, a Property Law Firm.
We are here to help.