Cooling-Off Period

You have a right to terminate the contract if you change your mind. This right exists only for a limited time, and is called a Cooling-off Period.

The Cooling-off Period starts on the day a Buyer receives from the Seller or the Real Estate Agent a copy of the Contract signed by both parties or, if that day is not a business day, on the next business day.

If the Seller signed the Contract before the Buyer, the Cooling-off Period starts on the day the Buyer signed the Contract and communicated their acceptance to the Seller.

When does the cooling-off period start for a Contract?

If the cooling-off period applies to a Contract, the cooling-off period starts on the day the Buyer receives from the Seller or the real estate agent a copy of the Contract signed by both parties or, if that day is not a business day, on the next business day. If the Seller signed the Contract first, the cooling-off period starts on the day the Buyer signed the Contract and communicated this acceptance to the Seller.

When does the cooling-off period end?

The cooling-off period ends at 5pm on the fifth business day.

What is a cooling-off period?

The Cooling-off period is a critical consumer protection mechanism that allows buyers to withdraw from a contract within a specified time frame without incurring significant penalties. This period, typically five business days, serves as a safeguard against impulsive or pressured decisions. 

It allows buyers to review the terms of the contract thoroughly, seek legal advice if necessary, and ensure that the decision aligns with their best interests. The conditions attached to the Cooling-off period, such as the precise timing of its commencement, are designed to ensure clarity and fairness for both parties involved in the transaction. 

Understanding and utilising the Cooling-off period effectively can prevent future disputes and financial losses, emphasising the importance of being well-informed about one’s rights in contractual agreements.

What happens if the Buyer terminates the Contract during the cooling-off period?

If the Buyer terminates during the Cooling Off Period, the Seller may retain a penalty of 0.25% of the purchase price from the deposit paid under the Contract. The Seller must refund the balance of the deposit (if any) to the Buyer within 14 days of termination.

How can the Buyer shorten or waive the cooling-off period?

The Buyer can shorten the cooling-off period or waive the benefit of it entirely by giving written notice to the Seller.

When does a cooling-off period apply?

The Property Occupations Act 2014 cooling-off provisions apply to the sale of residential property, except where:

• it is used primarily for industry, commerce or primary production;
• sold by auction, or the Contract was entered into, no later than 5pm on the second clear business day after the Property was passed in at auction with a registered bidder
• sold by exercise of an option granted under an earlier agreement by the same parties
• where the Buyer is:
  • a publicly listed corporation or a subsidiary of a publicly listed corporation
  • the State or a statutory body
  • purchasing at least three lots at the same time (even if under separate contracts).

How do I cool-off?

It is critical that you  communicate your decision to the Seller prior to 5pm on the last day of the cooling-off period. It is not enough to tell your Conveyancer by that time, you need to give your conveyancer enough time to communicate that you are cooling-off. Don’t leave it until the last minute.

Can I cool-off on a property I buy at Auction?

No, there is no ability to cool-off on Auction property transactions.

Does  the Cooling-off period apply to my property purchase?

A contract is exempt from the cooling-off period for:

• a sale by auction
• a follow-up sale after an unsuccessful auction (before 5pm on the second business day), in which the buyer was a registered bidder
• an option contract (or a sale contract formed as the result of an option contract).

The cooling-off period also doesn’t apply if the buyer is:

• a publicly listed corporation (or their subsidiary)
• the State or a statutory body
• buying at least 3 lots at the same time (whether or not in the same contract).

How long does the Cooling-off period last?

The time limit to exercise any Cooling-off rights is five business days only and  subject to a range of conditions.

When does the Cooling-off period start in a property transaction?

• If applicable to your Contract, the Cooling-off period starts on the day you receive from the Seller (or the Seller's agent) a copy of the Contract signed by both parties or, if that day is not a business day, on the next business day.
• If the Seller signed the Contract before you did, the Cooling-off period starts on the day you signed the Contract and communicated your acceptance to the Seller.

What happens if I cool-off?

If you terminate the Contract during the cooling-off period, the Seller is entitled to retain 0.25% of the Contract price. The balance of any deposit must then be returned to you.

How do I cool-off?

It is critical that you  communicate your decision to the Seller prior to 5pm on the last day of the cooling-off period. It is not enough to tell your Conveyancer by that time, you need to give your conveyancer enough time to communicate that you are cooling-off. Don’t leave it until the last minute.

Can I cool-off on a property I buy at Auction ?

No, there is no ability to cool-off on Auction property transactions.