Making an offer on a property can be exciting, but buyers sometimes change their minds before the seller has accepted the offer.
This can happen because:
- The buyer finds another property.
- The buyer changes their financial plans.
- The buyer receives new information about the property.
- The buyer decides the price is too high.
- The buyer wants to negotiate different terms.
- The buyer simply no longer wants to proceed.
So, can a buyer withdraw an offer before the seller signs the Contract of Sale?
Generally, a buyer can withdraw their offer before the seller accepts it.
Consumer Affairs Victoria states that in a private sale, a buyer can withdraw their offer at any time before the seller accepts it.
However, it is important to understand the difference between making an offer and entering into a binding Contract of Sale.
When does a property offer become binding in Victoria?
For a private property sale, the buyer will generally make an offer by signing the Contract of Sale.
The seller accepts that offer by also signing the contract.
Consumer Affairs Victoria explains that the property is sold when both the buyer and seller have signed the Contract of Sale.
This means the timing of the seller’s acceptance can be important.
For example:
Buyer signs contract → Offer made → Seller has not signed → Buyer may withdraw
But:
Buyer signs contract → Seller signs → Contract formed → Different rules apply
Once both parties have signed, the buyer should not assume they can simply withdraw the offer because they have changed their mind.
Can I withdraw my offer after signing the contract?
This is where buyers need to be careful.
A buyer may sign the Contract of Sale as an offer to purchase the property.
If the seller has not yet accepted the offer, the buyer may generally withdraw it before acceptance.
However, if the seller has already accepted the offer by signing the contract, the transaction may have become binding.
At that point, the buyer may need to consider whether a cooling-off right or another contractual or legal right applies.
You should not assume that simply telling the agent you have changed your mind will end the contract.
How do I withdraw my offer?
If you decide that you no longer want to proceed before the seller has accepted your offer, it is sensible to communicate the withdrawal clearly and promptly.
Depending on how the offer was made, this may involve communicating with:
- The real estate agent
- The seller directly, if there is no agent
- Your conveyancer or legal practitioner
It is better to make the withdrawal clear rather than simply stop responding to the agent.
Keep a record of your communication.
If you are unsure whether the seller has already accepted the offer, speak with your conveyancer before taking further action.
What if the seller has already signed?
If the seller has already signed the Contract of Sale, the buyer may need to consider whether a cooling-off period or another right to end the contract applies.
Consumer Affairs Victoria states that a property is sold when both parties have signed the contract.
For an eligible private sale of residential or small rural property, a buyer may have a three clear business day cooling-off period.
The cooling-off period generally starts from the date the buyer signs the contract, not the date the seller signs it. There are important exceptions.
If you think you want to withdraw after the seller has signed, get advice promptly rather than assuming the offer can simply be cancelled.
What if the agent says the seller has accepted verbally?
A verbal conversation can create confusion.
Consumer Affairs Victoria explains that a property is sold when the buyer and seller have signed the Contract of Sale.
If the agent tells you that the seller has verbally accepted your offer, but you are unsure whether the seller has actually signed the contract, ask for confirmation of the contract’s status.
Do not rely on assumptions about whether the seller has accepted the offer.
What if I made an offer by text message or email?
Property negotiations can happen through different communication methods.
However, the important question is whether a binding Contract of Sale has been formed.
For a private property sale, the Contract of Sale is the key document and the property is sold when both parties have signed it.
If you have made an offer through email, text message or another communication channel and are unsure whether you are legally committed, have the circumstances reviewed before taking further action.
Can the seller accept another offer after I make an offer?
If your offer has not yet been accepted, the seller may continue considering other offers.
Consumer Affairs Victoria notes that sellers may receive more than one offer during negotiations.
This is one reason buyers may want to include a clear expiry date for their offer.
Consumer Affairs Victoria recommends that buyers consider writing a date into the contract by which the offer will lapse.
What happens to the deposit if my offer is withdrawn?
If your offer has not been accepted by the seller, Consumer Affairs Victoria states that the deposit will be returned to the buyer if the seller does not accept the offer.
The exact circumstances should still be checked, particularly if there is uncertainty about whether the seller has accepted the offer or whether a contract has been formed.
What if I want to change my offer instead?
You may decide that you do not want to completely withdraw but instead want to change:
- The purchase price
- The settlement date
- The deposit
- A special condition
- A finance condition
- A building and pest condition
- Inclusions or exclusions
If the seller has not accepted the offer, the parties may negotiate different terms.
However, make sure the agreed terms are properly recorded in the Contract of Sale before you sign.
Consumer Affairs Victoria recommends that buyers check the contract carefully, including the price, deposit, settlement period, conditions and inclusions.
What should I do before making an offer?
Before signing a Contract of Sale as an offer, make sure you understand what you are signing.
Check:
- The property address
- Purchase price
- Deposit
- Settlement date
- Finance conditions
- Building and pest conditions
- Inclusions and exclusions
- Special conditions
- Section 32 Vendor Statement
- Any other terms that may affect your purchase
A contract review before signing can help you understand the document before you make your offer.
What if I am not sure whether my offer has been accepted?
This is a situation where you should avoid guessing.
Ask the agent whether the seller has signed the Contract of Sale and ask for a copy of the signed contract if appropriate.
If you have concerns about whether a binding contract has been formed, contact your conveyancer or legal practitioner promptly.
Common mistakes buyers make
Assuming a verbal acceptance means the property is sold
The signed Contract of Sale is critical to determining whether the property has been sold.
Waiting too long to withdraw
If you have decided not to proceed and the seller has not yet accepted your offer, communicate your withdrawal promptly.
Signing before reviewing the contract
Signing the contract as an offer is an important step. Do not assume you can simply change your mind later.
Confusing withdrawal with cooling-off
Withdrawing an offer before acceptance is different from exercising a cooling-off right after a contract has been formed.
Not keeping records
Keep copies of emails, messages and documents relating to your offer.
How can Prox Conveyancing help?
At Prox Conveyancing, we help Victorian buyers understand their Contract of Sale before signing and assist with the conveyancing process from contract through to settlement.
If you are considering making an offer and want to understand the contract before signing, our Contract Review service can help you identify important terms and conditions before you commit to the purchase.
Frequently Asked Questions
Can I withdraw my property offer before the seller signs?
Generally, yes. Consumer Affairs Victoria states that a buyer can withdraw an offer at any time before the seller accepts it.
What if I signed the contract but the seller has not signed?
The buyer’s signed contract can constitute an offer. If the seller has not accepted it, the buyer may generally withdraw the offer before acceptance.
What if the seller has already signed?
The situation is different once both parties have signed. You may need to consider cooling-off rights or other contractual or legal rights.
Can I withdraw an offer by text message?
The safest approach is to communicate clearly and keep a record. If you are unsure about the status of the contract, speak with your conveyancer or legal practitioner.
Will I get my deposit back if the seller rejects my offer?
Consumer Affairs Victoria states that the deposit will be returned if the seller does not accept the offer.
Can I change my offer instead of withdrawing it?
You may be able to negotiate different terms before the seller accepts the offer. Make sure any agreed terms are properly recorded.
Should I get the contract reviewed before making an offer?
It can be helpful, particularly if you are signing the Contract of Sale as your formal offer. Understanding the contract before signing can help you identify important conditions and obligations.
Final Thoughts
A buyer’s offer and a binding Contract of Sale are not necessarily the same thing.
In a Victorian private sale, a buyer can generally withdraw an offer before the seller accepts it. Once both parties have signed, however, different rules apply.
If you are unsure whether your offer has been accepted or whether you are already bound by a contract, get advice promptly.
About the Author
Meet Sally
Sally Kwok is a Licensed Conveyancer and the Director of Prox Conveyancing. With more than 16 years of experience in the conveyancing industry, she is committed to helping buyers and sellers navigate Victorian property transactions with confidence. Sally is passionate about providing clear communication, practical guidance and personalised service throughout every stage of the conveyancing process.
👉 Learn more about Sally on our About page.
About Prox Conveyancing
Prox Conveyancing is a Victorian conveyancing practice providing professional conveyancing services for residential property transactions across Victoria. We assist buyers, sellers, investors and families with a wide range of conveyancing matters, delivering personalised service, transparent communication and professional support from contract through to settlement.
👉 Learn more about Prox Conveyancing on our About page.
This article provides general information only and is not legal advice. Every property transaction is unique, and the information above may not apply to your particular circumstances. If you require advice about your specific situation, please contact a qualified legal professional or licensed conveyancer.