A property in Victoria is sold at public auction. Which of the following statements about the cooling-off period is correct?
Correct Answer
C) No cooling-off period applies to a property bought at a public auction.
Under section 31 of the Sale of Land Act 1962, the cooling-off right does not apply to a property sold at a publicly advertised auction, or sold within 3 clear business days before or after one. Other exceptions include land used mainly for industrial or commercial purposes, farming land over 20 hectares, a buyer who is an estate agent or corporate body, and a previous contract between the same parties on substantially the same terms.
Why This Is the Correct Answer
The Sale of Land Act 1962 excludes cooling-off for a property sold at a publicly advertised auction, and for sales within 3 clear business days before or after that auction. Auction buyers bid knowing the contract is binding when they sign.
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