Last updated: November 2026
You have just signed a contract on a private sale. The clock is now running, and most buyers do not realise how little time they have to get a building inspection done.
Here is the short version. In Victoria, a buyer of residential property can usually end the contract within 3 clear business days of the day they sign it, under section 31 of the Sale of Land Act 1962. Weekends and public holidays do not count. If you cool off, you get your money back except for $100 or 0.2% of the price, whichever is more. There is no cooling-off period if you buy at auction or within 3 clear business days before or after a publicly advertised auction.
This guide explains how the cooling-off period works, when it does not apply, and how to fit a professional inspection into it.
How the cooling-off period works
- Length: 3 clear business days
- Starts: the first business day after you sign, even if the vendor signs later
- Excludes: weekends and public holidays
- How to end the contract: written notice to the vendor or the vendor’s agent within the period
- Cost to cool off: you forfeit $100 or 0.2% of the purchase price, whichever is more
On a $900,000 home, 0.2% is $1,800. That is a fraction of what a hidden structural or termite problem can cost.
Example timeline
You sign on | Day 1 | Day 2 | Day 3 (last day to cool off) |
Monday | Tuesday | Wednesday | Thursday |
Wednesday | Thursday | Friday | Monday |
Friday | Monday | Tuesday | Wednesday |
If a public holiday falls inside the window, the deadline moves out by a day. Confirm your exact deadline with your conveyancer.
When there is no cooling-off period
Consumer Affairs Victoria lists the situations where a buyer usually cannot cool off. The ones that matter most to home buyers are:
- You bought at a publicly advertised auction, or on the day of the auction
- You bought within 3 clear business days before or after a publicly advertised auction
- The property is used mainly for commercial or industrial purposes
- You are buying as a company or you are an estate agent
- You have previously signed a contract for the same property in similar circumstances
If you are buying at or around auction, your inspection must happen before you bid. Read do I need a building inspection before the auction.
How to fit a building inspection into 3 business days
- Book before you sign if you can. If you are close to agreeing on a price, book the inspection now. It can always be moved.
- Ask the agent for access the same day. Most delays come from waiting for keys or a time that suits a tenant.
- Choose a combined building and pest inspection. Termite damage is one of the most expensive surprises in Melbourne homes, and one visit covers both. See our building and pest inspections.
- Attend if you can. You can walk through the findings with the inspector on site.
- Read the report the day it arrives. Buy Wise reports are delivered within 24 hours of the inspection. Our guide to reading a pre-purchase inspection report shows you what to focus on.
- Decide before Day 3 ends. Cool off in writing, renegotiate, or proceed.
Cooling off vs a building inspection condition
Cooling off is not the only protection. Before you sign, you can ask your conveyancer to add a special condition making the contract subject to a satisfactory building and pest inspection.
| Cooling-off period | Subject to building and pest condition |
Automatic? | Yes, in most private sales | No, it must be negotiated into the contract |
Time allowed | 3 clear business days | Whatever the condition says |
Cost to exit | $100 or 0.2% of the price | Usually none if the condition is not met |
Available at auction? | No | Rarely, auction contracts are unconditional |
Best for | Quick private sales | Buyers who need more time or certainty |
Vendors in a competitive market may resist a condition, so cooling off is often all you have. That is why speed matters.
What to do after the report comes back
- No major issues: proceed with confidence
- Issues you can live with: get quotes and use them to negotiate the price
- Serious structural, damp or termite problems: consider cooling off in writing before the deadline
Always read the report alongside the Section 32 vendor statement.
What Homeowners Say
“They identified two major defects in a property I was about to purchase, issues that would have cost me thousands. The report was comprehensive, clear, and very professional, giving me full confidence in making an informed decision.” – Noreen Ross-Gilder
Key Takeaways for Melbourne Buyers
- Victoria gives most private sale buyers 3 clear business days to cool off after signing.
- Cooling off costs $100 or 0.2% of the price, whichever is more.
- There is no cooling off at auction or within 3 clear business days either side of one.
- Book your building and pest inspection the moment you sign, or before.
- A subject to building and pest condition gives more time, but must be negotiated before signing.
Book your inspection now or call 1800 289 947.
Frequently Asked Questions
External Resources
- Consumer Affairs Victoria – Cooling-off period for property contracts
- Law Institute of Victoria – Contract of Sale of Land
- Standards Australia – AS 4349.1 Inspection of Buildings
About the Author
PHILIP GUILDEA – Director of Buy Wise Inspections
Philip Guildea, known as Phil, is the Director of Buy Wise Inspections. Phil is originally from Ireland, but he moved to Australia in 2011. He has extensive experience in construction, inspection, and property management.
Phil started his career in construction as an apprentice carpenter. He then worked for his father’s construction company and later started his own successful construction business. He has worked on custom-designed homes, residential building projects, and major infrastructure projects all over Australia.
Phil is a licensed pest technician, a registered builder, a qualified carpenter, and a licensed pool safety barrier inspector. His broad background gives him a practical understanding of how buildings are designed, constructed, maintained, and inspected.
At Buy Wise Inspections, Phil conducts pre-purchase building and pest inspections, termite inspections, new home inspections, quality control inspections, pool safety barrier inspections, special purpose inspections, and building advice on alteration or addition possibilities.
His method is based on clear communication, useful reporting, and ensuring that buyers know the true state of a property before they make big decisions.
Disclaimer: This article provides general information only and does not constitute building, pest, legal, or financial advice. Cooling-off rights depend on how and when you buy. Confirm your deadline with a qualified conveyancer or solicitor and obtain an independent professional building and pest inspection tailored to the specific property.