Cooling Off Period
in Victoria
Stepping into the
Victoria Property Market?
What Exactly Is a Cooling Off Period for Real Estate in VIC?
So, How Long Is the Cooling Off Period in Victoria?
More Things
You Should Know
Are there any exceptions to this rule?
Like many laws, this one isn’t absolute. There are specific scenarios where the cooling off period doesn’t hold ground:
- If your property sale is three business days before or after a publicly advertised auction, the cooling off period doesn’t come into play.
- Did you previously negotiate with the same parties for the same property? That previous interaction removes the cooling-off privilege for subsequent discussions.
- If you’re an estate agent or making the purchase via a corporate entity, like a company, the cooling off period is null.
Can the cooling off period be bypassed in VIC?
It might sound counterintuitive, but there are moments when waiving the cooling off period is a strategic move. In hyper-competitive property markets, relinquishing this safety period can make your bid more enticing to sellers. But remember that it’s a decision loaded with risk, as you’re trading away a valuable protective right.
Missed the window but want to back out?
Terminating a property sale after the cooling-off window can be complex and costly. However, there might be some lifelines:
- Confirm if your offer was indeed the one accepted by the vendor or if they countered. That detail could help you terminate a contract after a cooling off period.
- Dive into the contract’s nuances. Is there a clause or condition that might be your exit ticket
- Sometimes, a technical error or oversight can come to your rescue.
- If the Section 32 vendor statement holds discrepancies, it could question the sale’s legitimacy.
However, navigating these waters requires expertise. So, if you’re facing the same situation, promptly seeking legal counsel is your best bet to ensure minimal fallout.
What happens after a cooling off period in Victoria?
Once the three-day window wraps up, the contractual obligations solidify. If you’ve done your due diligence and are content with your decision, the property journey ahead is straightforward. However, should doubts persist after this window, retreating becomes more complex and potentially costlier.
When exactly does the clock start ticking?
It’s essential to realise that the countdown begins the instant the purchaser puts pen to paper, irrespective of when the vendor reciprocates. Even if the vendor signs the contract of sale days later, that doesn’t influence this timeline.
Decided to change your mind? Here’s the cost
Opting to change lanes during the cooling off period does come with a price tag. Victoria mandates that those who back out pay the greater sum of either $100 or 0.2% of the property’s purchase price. Think of it as a minor inconvenience fee for the vendor, who now must restart their selling process.
HOW LONG IS
THE COOLING OFF PERIOD IN VIC?
Steps to Cancel
During the Cooling Off Period in VIC
It’s OK to change your mind on a property purchase. That’s the purpose of a cooling off period, after all. But how can you terminate a contract during the given window? Simply follow these steps:
Consult a Solicitor
Before any hasty decisions, it’s prudent to liaise with your solicitor. They’ll provide clarity on your position and potential repercussions.
Submit a Written Notice
If you’re resolute about retracting, formally notify the seller’s agent in writing. Be sure it’s done before the cooling-off period ends.
Be Aware of Penalties
Be prepared for a minor financial hit. As mentioned, cancelling during the cooling off period in VIC might mean parting with 0.2% of the purchase price. It’s a small price for a change of heart.
Let Cooling Off Period Help Kickstart Your Real Estate Journey
Ready to take the next step toward your dream home? Contact brokers today, and let’s start your journey toward financial security and homeownership excellence. We’re excited to be a part of your story!