What is a cooling-off period?

A standard contract for buying a home in Queensland comes with a five day cooling-off period. This allows the buyer to cancel the contract should they not want to go ahead with the sale. The buyer may be charged a percentage of the total purchase price for cancelling during this period, depending on the state the purchase is being made in. It might be a good idea to find out from your solicitor what the current situation is in your state before signing the contract.

When does the cooling-off period start?

The period starts on the day the buyer receives the signed contract – the contract must be signed by both the seller and the buyer. If the signed contract is received on a weekend or public holiday the period will start on the next business day.

When does the cooling-off period end?

The period ends on the final (5^th) day of the period at 5pm. After this time the contract cannot be cancelled unless other conditions such as finance or building/ pest issues arise and cancellation is allowed for within the signed contract.

How to cancel a sale within the cooling-off period

To cancel the contract during the period the buyer must give written notice to the seller (or seller’s agent) and deliver it before 5pm on the 5^th day of the period. The notice must be signed by the buyer.

Can a cooling-off period be waved?

A period can be shortened or waived by providing written notice to the seller (or seller’s agent).

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