What is cooling off?

Cooling off is the purchaser’s right to end a contract for the sale of real estate within 3 clear business days of the day that they sign the contract (please note that this is not necessarily the date that the vendor signed the contract, which is not relevant here).

To cool off, you or your legal representative must either give the vendor or the vendor’s agent written notice that you are ending the contract or leave the notice at the address of the vendor or the vendor’s agent to end this contract within the 3 clear business days.

If you cool off, you are entitled to a refund of all the money you have paid except for $100.00 or 0.2% of the purchase price (whichever is the greater).

The 3-day cooling-off period does not apply if:

• you bought the property at or within 3 clear business days before or after a publicly advertised auction; or
• the property is used primarily for industrial or commercial purposes; or
• the property is more than 20 hectares in size and is used primarily for farming; or
• you and the vendor have previously signed a contract for the sale of the same land in substantially the same terms; or
• you are an estate agent or a corporate body.

For more information about cooling off, please contact Glenferrie Conveyancing in Northcote on 03 9815 2351.