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I have just confirmed there is NO cooling off period on residential leases in NSW. I suspect the same for Victoria. This link from NSW Fair Trading is very informative about this issue...

With some contracts there is a statutory cooling-off period - I would check if that is the case with a lease. If not, the solicitor's letter is just to scare you. (We received a solicitor's letter over the matter of a new fence with our neighbour, threatening us with legal action. Very...