Real Estate Sale Contract Cooling Off Period Vic
What is a Cooling Off Period?
A cooling off period is a timeframe where a purchaser can cancel or withdraw from a contract without any penalties or legal repercussions. In Victoria, the cooling off period for real estate sale contracts is three business days.
When Does the Cooling Off Period Start?
The cooling off period starts from the day the purchaser signs the contract of sale or receives a copy of the contract, whichever comes last. It is important to note that weekends and public holidays are not included in the cooling off period.
How to Cancel a Contract During the Cooling Off Period?
The purchaser must provide written notice to the vendor or the vendor's agent within the cooling off period to cancel the contract. The notice must be in writing, signed by the purchaser, and delivered to the vendor or vendor's agent in person, by post, or by email.
What Happens to the Deposit?
If the purchaser cancels the contract during the cooling off period, the deposit paid will be refunded in full. However, if the purchaser fails to cancel the contract within the cooling off period, the deposit may be forfeited.
Are There Any Exceptions to the Cooling Off Period?
Yes, there are exceptions to the cooling off period. For example, if the purchaser has engaged a legal practitioner to review the contract before signing, the cooling off period may not apply. Additionally, if the property is sold at auction, there is no cooling off period.
What Happens After the Cooling Off Period?
After the cooling off period, the contract becomes binding on both parties, and the purchaser is legally obligated to complete the sale. If the purchaser fails to complete the sale, the vendor may take legal action to recover any losses incurred.
Why is the Cooling Off Period Important?
The cooling off period provides purchasers with an opportunity to review the contract and seek legal advice before committing to the purchase. It also protects purchasers from being pressured into signing a contract without fully understanding the terms and conditions.
Conclusion
Understanding the cooling off period is essential for anyone looking to purchase real estate in Victoria. It provides a safety net for purchasers and ensures that they have enough time to review the contract and seek legal advice before committing to the purchase.