Advice for buyers

1	After I made an offer to buy, the property was destroyed or damaged. Can I withdraw from the offer?
2	I recently bought a property that was destroyed or damaged in the bushfires. What should I do?

Advice for sellers

1	Can I accept an offer to buy a property that was destroyed or damaged?
2	Can I settle a contract of sale for a property that was damaged or destroyed?
3	I have received an unexpected offer to buy my property. What should I do?

Advice for buyers
1. After I made an offer to buy, the property was destroyed or damaged. Can I withdraw from the offer?		You have three business days after you make a written offer, to 'cool-off' and withdraw your offer. You can only do this by giving written notice to the seller or to their estate agent. If the three-day cooling off period has finished and the seller has accepted your offer, you may have a right to end the contract of sale and to a full refund of your deposit, but only if the house is destroyed or damaged to the extent that it is unfit for human occupation. You should seek advice from a legal practitioner or a conveyancer regarding withdrawing an offer during the cooling off period and/or to end the contract.
[Back to questions]
2. I recently bought a property that was destroyed or damaged in the bushfires. What should I do?		You may have a right to end the contract of sale and to a full refund of your deposit if you have not taken possession of the property. The right to end the contract only applies where the house is destroyed or is damaged to the extent that it is unfit for human occupation. To end a contract under these circumstances you must do so in writing within 14 days after becoming aware of the destruction or damage to the house. You should seek advice from a legal practitioner or a conveyancer about ending the contract. If the property is damaged but is still liveable, it is the responsibility of the seller to undertake and pay for any repairs. From the time when you signed the contract to when you take possession of the property, any insurance policy that the seller has will also benefit you, unless you have separate coverage. You should obtain the details of the seller’s insurance and the level of cover. Consider seeking expert advice to assist you to assess the extent and cost of the repairs needed to the house. Discuss any repairs with the seller.
[Back to questions]

Advice for sellers

 

1. Can I accept an offer to buy a property that was destroyed or damaged?		You can accept the offer. However, the buyer may have three business days after signing the contract of sale to ‘cool-off’ and withdraw from the sale and have any deposit paid back in full. The buyer may also end the contract if the house has been destroyed or damaged so that it is unfit for human occupation. If the offer is conditional, the buyer may still end the contract depending upon the conditions of the offer. You should seek advice from a legal practitioner or a conveyancer.
[Back to questions]
2. Can I settle a contract of sale for a property that was damaged or destroyed?		That will depend upon the damage to the property. If the house on the property has been destroyed or substantially damaged to the extent that it is unfit for human occupation, the buyer can end the contract before taking possession of the property. The buyer has 14 days from the date of becoming aware of the damage or destruction of the house, to end the contract. If the buyer ends the contract, you must refund any money paid by the buyer. If the property is damaged but is still liveable, you are responsible for undertaking and paying for any repairs. Contact your insurer and consider seeking expert advice to assess the extent and cost of the repairs to the house. Consult a legal practitioner or conveyancer about whether the sale can be settled and your obligations to repair the house.
[Back to questions]
3. I have received an unexpected offer to buy my property. What should I do?		If you are approached to sell your property, regardless of whether your house has been damaged or destroyed, take your time to consider the offer. Talk to other people in your local area about the amount of the offer and to experts such as estate agents, conveyancers and legal practitioners. Carefully consider your overall financial position before accepting any offer. Contact Consumer Affairs Victoria if you think that you have accepted an unfair offer.

The Real Estate Guide (PDF | 782KB) can provide guidance if you decide to sell your property.

Please contact Consumer Affairs Victoria if you require a printed copy or further information.