Can you change your mind after settlement?

If you have just bought a home in Melbourne and wake up the next morning thinking you have made a mistake, you are not the first. Property decisions are emotional as well as financial. The big question is simple: can you change your mind after settlement?

The short answer is almost always no. Once settlement is complete, the deal is final and title has moved. There are still options if something is wrong, but they are not the same as backing out. This guide explains the timing, the rules in Victoria, and what you can do if you are having second thoughts.

What Settlement Actually Means in Victoria

Settlement is the handover day that the contract has been building towards. On settlement day the balance of the price is paid, the title is transferred into your name and you take possession of the property unless you agreed otherwise. Rates and outgoings are adjusted so the seller pays them up to and including the day of settlement and you take over from the day after. In Victoria, land transfer duty is usually paid at or shortly after settlement, and you cannot be registered on title until duty is paid.

Put simply, settlement is the finish line. Once you cross it, ownership has changed.

Can You Change Your Mind After Settlement?

In most cases, no. By the time settlement has taken place, you have become the registered owner and the seller has been paid. The contract has been performed. There is no general right to unwind a completed sale just because you changed your mind.

That does not mean you have no rights if something is wrong. It means the type of remedy changes. Instead of cancelling the sale, you may be looking at warranty claims, insurance claims, or legal claims for misrepresentation or breach. Those paths can deliver repairs or compensation, but they rarely result in the entire contract being reversed after settlement.

Ways to Exit Before Settlement

Before we talk about remedies after settlement, it helps to understand the escape hatches that exist beforehand. If you are still within one of these windows, act quickly.

Cooling Off Period

For most private sales of residential property and small rural land in Victoria, you have a short cooling off period of three clear business days after you sign. If you cool off correctly in writing, you will get back your money less the greater of $100 or 0.2 per cent of the purchase price.

Important exceptions: Cooling off does not apply to:

• Auction purchases
• Properties used mainly for industrial or commercial purposes
• Where you signed another contract for the same property on the same terms

Because the window is tiny, do not wait. Written notice has to be given to the seller or the seller's agent at the address for service listed in the contract.

Contract Conditions (Finance and Inspections)

Many private sale contracts are negotiated with conditions, like being subject to finance approval or a building and pest inspection. If your finance is refused and the contract lets you end the deal on that basis, you can withdraw before settlement without relying on cooling off.

Common conditional clauses include:

• Finance approval
• Sale of an existing home
• Building and pest inspection results

The exact wording of your contract matters. If you are on the clock, get written advice from a conveyancer or solicitor before any deadline passes.

Section 32 Problems and Rescission Before Settlement

In Victoria, the seller must give you a Section 32 statement that discloses key information about the property before you sign. If the seller fails to provide a proper statement, provides false information, or leaves out required information, the law gives buyers the right to rescind the contract, but crucially this right is designed to be exercised before settlement.

Critical timing: If you discover a Section 32 problem and you want to walk away, you must act before settlement. Leave it too late and rescission may not be available, forcing you to consider other remedies instead.

What You Can Still Do After Settlement

Now to the heart of the question. You have settled, something is not right and you want to know your options. Here are the main avenues to consider.

Building Defects and Statutory Warranties

If you discover building issues after settlement, you may be protected by statutory warranties that apply to domestic building work for up to 10 years from the occupancy permit or certificate of final inspection. For work over a certain value, there is also domestic building insurance that can respond if the builder has died, disappeared or become insolvent.

Disputes can be taken to Domestic Building Dispute Resolution Victoria if you cannot resolve them with the builder. These rights survive changes of ownership, which is why they are still available after you settle.

Practical tip for inner Melbourne homes: Track down the builder's details through council if you do not have them, document the problems with photos and dates, and write to the builder clearly describing the defect and the outcome you want.

Misleading or Deceptive Conduct by Agents or Sellers

Australian Consumer Law prohibits misleading or deceptive conduct in trade or commerce. Real estate agents are required to give truthful and complete information about the property, and misleading conduct can lead to legal remedies such as compensation.

Note that while agents are clearly caught by the ACL, whether a private seller is caught depends on whether the sale was in trade or commerce. Getting advice here is essential.

If you believe the sales campaign misled you about something material, gather the advertising, emails and any statements you relied on. These claims usually focus on loss or damage rather than reversing the sale after settlement.

Paperwork Issues and Adjustments

Sometimes post-settlement problems are not about the structure itself but about paperwork or money that should have been adjusted. If rates, owners corporation fees or water charges have not been correctly apportioned, your conveyancer can engage with the other side to correct the figures.

If you discover you paid too much duty because of an error, you may be able to apply to the State Revenue Office for a reassessment refund within prescribed time limits.

If You Try to Pull Out Late

What happens if you simply do not settle on time or refuse to complete? Most Victorian contracts allow the party who is ready, willing and able to complete to:

• Charge penalty interest
• Issue a default notice
• Pursue further rights if you do not fix the default

In serious cases, the seller may terminate the contract, keep your deposit and claim damages. None of this is pleasant, which is why it pays to act early if you are getting cold feet.

A Melbourne Buyer's Quick Checklist If You Are Wavering

1. Check your cooling off window: If you signed a private sale contract and it has been fewer than three clear business days, you may be able to cool off by giving written notice. Remember the exceptions for auctions and other categories, and the small deduction from your refund.
2. Look for live contract conditions: If you have a subject to finance clause and your lender has refused approval, you may be able to end the contract under that clause. Time limits and notification rules apply, so read the wording carefully.
3. Re-check the Section 32 statement: Missing or false disclosure can create a right to rescind before settlement, but speed is everything. Get advice immediately if you think the disclosure was defective.
4. Use your final inspection: You are entitled to a pre-settlement inspection in the week before settlement. If something has changed since contract, report it and ask for repairs before you settle. This is often the last chance to sort things while you still have leverage.
5. If settlement has already happened: Move from exit mode to remedy mode. For building issues, look at statutory warranties and the insurer position. For misleading conduct, collect evidence and get legal advice on an ACL or misrepresentation claim. For money or paperwork errors, ask your conveyancer to pursue adjustments or a duty reassessment with the SRO.

Frequently Asked Questions

I bought at auction. Can I cool off?

No. Victorian cooling off rights do not apply to properties bought at auction, nor to contracts signed within three clear business days before or after an auction.

Can I hand the keys back after settlement and unwind the sale?

No. Settlement is completion. Title has transferred and the seller has been paid. If there is a problem, your focus shifts to warranties, insurance or compensation rather than cancellation.

What if I find serious structural defects after I move in?

You may be able to claim under the statutory building warranties that apply to domestic building work for up to 10 years, and in some cases under domestic building insurance where the builder has died, disappeared or become insolvent. Disputes can be taken to Domestic Building Dispute Resolution Victoria.

The agent's ad overstated the land size. Do I have a case?

Agents must not mislead or deceive. If you suffered loss due to misleading or deceptive conduct, you may have a claim under Australian Consumer Law. Whether the private seller is caught by the ACL depends on whether they were acting in trade or commerce, so get advice about who to pursue and what evidence you need.

We settled, then realised we overpaid duty. Can we get money back?

Possibly. The State Revenue Office provides a path to apply for a reassessment refund in certain circumstances. Check the SRO's current refund guidance and time limits.

What if the other side is late to settle?

Standard Victorian practice is for the ready party to charge penalty interest and issue a default notice. If the default continues, termination and damages can follow. Your conveyancer will guide you through the steps.

Key Takeaways for Melbourne Property Buyers

• After settlement, you generally cannot change your mind and cancel the purchase. Your rights shift to repairs or compensation.
• If you are still pre-settlement, act fast. Cooling off, contract conditions and Section 32 rescission are all time sensitive.
• Keep records. Photos from the final inspection, emails from the agent and copies of the Section 32 statement matter.
• For building defects, look at statutory warranties and the DBDRV pathway.
• For advertising that misled you, talk to a lawyer about an ACL claim.
• For money matters like duty, check the SRO's refund pages.

Conclusion and Next Steps

Buying a home in Melbourne is a big call. Once settlement happens, the law treats the deal as complete. That is why the period before settlement is where most of the true exit options live. After settlement, your focus shifts to fixing problems and recovering loss where the law allows. If you are unsure where you stand, do not guess. Bring your contract and Section 32 to a professional and get an answer you can rely on.

Get Professional Help

If you want clear guidance tailored to your situation, contact Pearson Chambers Conveyancing for friendly, plain-English advice. We are happy to provide a free Section 32 contract review before you commit.

Phone: 03 9969 2405
Email: contact@pearsonchambers.com.au