What is the cooling off period?

This is something we always highlight to a buyer. The term cooling off period means the same for any off-the-plan purchase. Should you be buying an Apartment, townhouse or house and land the disclosure is equally managed. However, the cooling off period and rules vary between each state of Australia. As we are domiciled in Melbourne, we wanted to share this information in relation to Victoria only.

In Victoria the cooling off period for a residential off-the-plan purchase is fourteen days. This is written clearly within the first two-three pages of the contract of sale.

This is to the benefit of the buyer/purchaser. The purchaser has this time to consider the offer and ensure they want to proceed. The cooling-off period is effective from the date the purchaser signs the contract of sale. This is not crossed referenced to the vendors signature. If the vendor has signed a few days after the purchase, the cooling off period still commences from th date the purchaser signed the contract of sale.

In the event the purchaser wishes to exit from the contract within the cooling off period, the buyer will be entitled to the refund of any money paid, less $100 or 0.2% of the purchase price, whichever is greater.

Please note the cooling off period is an important inclusion to any off-the-plan contract. As an off-the-plan contract is unconditional you must use your cooling off period wisely. Once you past the pre-disclosed date, you are contractually obliged to settle the property when the date of settlement arises.

There are a few events where a cooling off period would not apply when buying off-the-plan. This should be discussed with your solicitor before considering purchasing. Please contact us if you’d like to learn more. We can introduce you to an independent legal representative who can help you further.

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While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.

Mar 2018