Buyers in Victoria have a 3-business-day cooling-off period after signing a private treaty contract. But Section 31 of the Sale of Land Act 1962allows that protection to be waived. A buyer can sign a section 31 statement before contract signing (or at signing) confirming they’ve received independent legal advice and agree to waive cooling-off. Once waived, you can’t change your mind. Vendors and agents often pressure buyers to sign section 31 statements, particularly for properties listed for auction-then-private-treaty.
This guide covers when waiver applies, when buyers should refuse to waive, and the mechanics of a valid section 31 statement.
When cooling-off applies
| Sale method | Cooling-off applies? | Waiver via s31 possible? |
|---|---|---|
| Private treaty | Yes (3 business days) | Yes |
| Auction (sold at) | No — never applies | N/A |
| Auction (sold within 3 days post-auction) | No | N/A |
| Auction passed in, sold on same day | No | N/A |
| Auction passed in, sold next week (private) | Yes | Yes |
| Buyer is a real estate agent / corporation | No (commercial buyer) | N/A |
What cooling-off lets you do
During cooling-off, you can rescind the contract for any reason whatsoever:
- Found a better property
- Building inspection found problems
- Finance hasn’t been approved (you’d still rely on subject-to-finance)
- Family circumstances changed
- Genuine change of mind
You forfeit a small “termination fee” — the greater of $100 or 0.2% of the purchase price. On a $700,000 purchase, that’s $1,400. The remaining deposit is returned in full.
How section 31 waiver works
A valid section 31 waiver requires:
- Independent legal advice.The buyer must obtain advice from a legal practitioner who is not the vendor’s legal representative or working for the agent.
- Statement signed before contract. The waiver statement must be given to the vendor either before contract signing or at the time of signing.
- Specific written form. The statement must be in the form prescribed by section 31(5).
- Solicitor’s certification. The legal practitioner certifies they advised the buyer.
If any element is missing, the waiver is invalid and cooling-off rights remain.
When agents request waiver — and what they’re actually saying
Agents commonly request waiver for:
- Auction-aftermath sales. Auction passed in; sold within days to highest bidder. Vendor wants certainty.
- Auction-style private treaty. Vendor wants the contract to be locked in, like an auction.
- Pressure tactics.“Other buyers are interested — sign the waiver to confirm your offer.”
- Vendor needs settlement certainty. Vendor has contracted to buy elsewhere and needs guaranteed deposit.
The agent’s ask is fundamentally: “Give up your right to walk away.” That’s a substantial buyer protection. Don’t hand it over without thought.
When buyers should refuse to waive
- Building inspection not yet complete.Cooling-off gives you 3 business days to commission and get back inspection results. Without it, you’re committed regardless of findings.
- Finance not yet approved. Even with subject-to- finance protection, cooling-off provides additional safety net.
- Section 32 not fully reviewed. 3 days is the minimum time to read the disclosure documents.
- No professional review yet. Cooling-off gives time for solicitor and conveyancer review.
- You’re uncertain.If you’re asking yourself “am I sure?”, don’t waive.
If you decide to waive — the cost-benefit
Sometimes waiver is reasonable:
- Property has been thoroughly inspected over multiple visits
- Section 32 reviewed by your solicitor before signing
- Finance pre-approved unconditionally
- Vendor offers price reduction in exchange for waiver (typical: 0.5–1.5% of purchase price)
- You genuinely intend to proceed and would never use cooling-off
If waiver is requested, ask: “What discount do I get for giving up my rights?” A meaningful discount makes waiver a commercial trade rather than a one-sided giveaway.
The independent legal advice requirement
Don’t accept advice from:
- The vendor’s solicitor
- A solicitor recommended by the agent (potential conflict)
- A lawyer at the agent’s law firm
- An online or template-only service that doesn’t actually advise you
Get genuinely independent advice from a solicitor of your own choosing. Cost: $300–$1,500. The advice should specifically address waiver implications, not just the contract generally.
What to ask before signing a section 31
- What protections am I giving up?
- What if my building inspection finds significant issues?
- What if my finance isn’t approved?
- What discount or concession am I receiving in exchange?
- Has my solicitor reviewed the Section 32 thoroughly?
Ready to check your contract? Upload your Section 32 or Contract of Sale at precontractreview.com for a pre-contract check — typically in just a few minutes.