A buyer wishes to exercise their cooling-off rights in Victoria. What is the maximum penalty they may face for cancelling the contract?
Correct Answer
A) 0.2% of the price or $100, whichever is greater
Under section 31 of the Sale of Land Act 1962, a buyer who ends the contract during the cooling-off period is entitled to a refund of all money paid except $100 or 0.2% of the purchase price, whichever is greater, which the vendor may keep.
Why This Is the Correct Answer
Section 31 of the Sale of Land Act 1962 lets the vendor keep $100 or 0.2% of the purchase price, whichever is greater, when a buyer cools off. Everything else the buyer has paid must be refunded.
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A buyer purchases a property in Queensland for $750,000 with a 42-day settlement period. If they exercise their cooling-off rights, what is the maximum penalty they would pay?
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