Have you signed a Contract of Sale of Land to buy a property in Victoria, and now have buyer’s remorse? You may be able to end the Contract during the cooling-off period, but not without making sure your situation checks all the right boxes.
Section 31 of the Sale of Land Act 1962 (Vic) provides for the circumstances in which you can terminate a Contract during a cooling-off period. It is a form of consumer protection introduced to provide the underdog with an extra helping hand.
If you can answer ‘yes’ to all of the following items, then chances are you have a right to terminate the Contract:-
- Can you give written notice (email or hand-delivered letter) to the Vendor within three (3) clear business days from the date that you (the Purchaser) signed the Contract?
For example, if you signed the Contract on Monday, 20 March 2023, then you have until 11.59pm on Thursday, 23 March 2023, to ensure an email reaches the server of the Vendor, the Vendor’s lawyer/conveyancer, and/or the Vendor’s Real Estate Agent (copy them all in; the more the better). You can also hand-deliver a letter/note to one of their addresses rather than sending an email, if you wish.
Another example, if you signed on Friday, 10 March 2023, where the Monday is the Labour Day Public Holiday, you would have until 11.59pm on Thursday, 16 March 2023.
Where time permits, your own conveyancer/lawyer should send this email on your behalf, but if it’s 10.00pm on the final day, send the email directly without waiting. - Are you prepared to lose 0.2% of the purchase price (with a minimum of $100) from your deposit? On a purchase price of $1,000,000.00, this would be $2,000.00.
- The Purchaser listed in the Contract is not a company or other corporate entity;
- You are not and have never been an Estate Agent yourself, or the director of a company which is/was an Estate Agent;
- The property is not used primarily used for industrial or commercial purposes;
- The property is not more than 20 hectares (49.42 acres) and primarily for used for farming;
- You did not buy the property at a public auction;
- You did not sign the Contract within three (3) clear business days either side of the scheduled public auction; and
- You have not previously signed a separate Contract to buy this property from this Vendor on substantially the same terms, and then that Contract didn’t proceed.
How did you go?
Of course, we recommend that you also chat with your specialist property lawyer/conveyancer to work through your particular circumstances.
An alternative to the cooling-off period to keep in mind, is that if the Vendor hasn’t yet supplied you with the Contract signed by the Vendor, then you can withdraw your offer instead as it’s not a binding Contract until both parties have signed.
It is important to not simply rely on other conditions such as the Contract being subject to finance or subject to pest and/or building inspections because each of these has its own set if specific criteria to meet before you can terminate the Contract on those bases.
The best advice of all is to contact us for thorough Contract and Vendor Statement advice before you sign the Contract. That way you won’t be pressured to make a difficult decision against a ticking clock!
Contact our experienced and friendly property team to discuss your conveyancing transaction and allow us to guide you through the sometimes-daunting process. You can email us anytime at reception@wvblawyers.com.au or call during business hours 03 5625 2544.
Authors:
Tessa Hoogerbrugge – Partner
Disclaimer: The information in this post is general in nature. This does not constitute legal advice and should not be relied on as such. Please contact one of our Lawyers if you are seeking advice about a specific legal matter.
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