You have a right to terminate the contract for any reason, including if you change your mind. This right exists only for a limited time and is called a Cooling-off Period.
The Cooling-off Period ends at 5pm on the third clear business day after the Buyer signs the Contract.
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 next business day after the Buyer signs the Contract.
When does the cooling-off period end?
The cooling-off period ends at 5pm on the third clear business day after the Buyer signs the Contract.
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 3 clear 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, they must give the Seller a written notice and pay a penalty of $100 or 0.2% of the price, whichever is greater. The Seller must refund the balance of the deposit (if any) to the Buyer as soon as possible.
When a cooling-off period does not apply?
The cooling-off provisions do not apply if:
- you purchase the property at a publicly advertise edauction;
- you purchase the property within 3 clear business days before or after a publicly advertised auction;
- the property is used primarily for industrial orcommercial purposes;
- the property is more than 20 hectares in size and isused primarily for farming;
- you and the seller previously signed a contract for the same property in substantially the same terms; or
- you are an estate agent or a corporate body.
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.
What happens if I cool-off?
If you terminate the Contract during the cooling-off period, the Seller is entitled to retain $100 or 0.2% of the Contract price, whichever is greater. The balance of any deposit must then be returned to you.
