A cooling off period gives you time to cancel the contract if you change your mind. In Queensland, the period is 5 standard business days and starts when you or your representative receives the contract signed by both you and the seller.
You can choose to waive your right to cool off or to shorten the period. However, you cannot extend the time beyond 5 business days.
The cooling off period ends at 5pm on the 5th business day. If you do not exercise your cooling off rights, you must continue with the purchase (subject to any terms and conditions).
It is important to know that if you exercise your cooling off rights, you must pay a termination penalty of 0.25% of the purchase price. This amount is usually taken from the deposit that has been paid.
When does a cooling off period not apply?
You will not have the benefit of a cooling off period if you purchase a property:
- At auction
- Within 2 business days after an unsuccessful auction where you were a registered bidder
How do I exercise my cooling off right?
You must give written notice to the seller if you want to cancel the contract within the cooling off period. Your representative can do this on your behalf.
Your instructions to your representative must be provided in writing (by email).
