A cooling off period gives a property buyer the right to withdraw from a contract of sale within a set number of days after signing, without losing their deposit. It is one of the most commonly misunderstood protections in Australian property law.
How Long Is the Cooling Off Period in Each State?
| State | Cooling Off Period | Penalty to Cancel |
|---|---|---|
| Victoria | 3 business days | 0.2% of purchase price |
| NSW | 5 business days | 0.25% of purchase price |
| Queensland | 5 business days | 0.25% of purchase price |
| Western Australia | None (standard contracts) | N/A |
| South Australia | 2 business days | No penalty |
| ACT | 5 business days | 0.25% of purchase price |
When Does the Cooling Off Period NOT Apply?
- Properties purchased at auction
- Properties purchased on the same day as auction (passed in)
- Commercial properties
- Properties sold between related parties
- Where a buyer waives the cooling off period in writing (section 66W certificate in NSW)
Can I Negotiate During the Cooling Off Period?
Yes. The cooling off period is often used by buyers to complete building and pest inspections and then return to the vendor for a price reduction if issues are found. A Collings Property Advisor can help you use this period strategically.
Do I Get My Deposit Back If I Cool Off?
You get most of your deposit back — minus the penalty percentage. The remaining deposit held in trust is returned to you.
How Can a Collings Property Advisor Help?
Collings Property Advisors help buyers understand their rights during the cooling off period, manage building inspection outcomes and negotiate price reductions where defects are identified — all for a fixed fee of $4,500 + GST.
FAQs
Can the vendor cool off from a property sale?
No. The cooling off period applies to buyers only. Once a vendor signs a contract, they are bound to it.
What happens if I cool off at auction?
Properties purchased at auction do not have a cooling off period. This is one of the key risks of buying at auction without professional advice.
Can I extend my cooling off period?
In some states, cooling off periods can be extended by agreement between buyer and seller — your solicitor or conveyancer can arrange this.
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