Queensland Cooling Off Period for Property Buyers
Buying a property is a big commitment, but for many residential property contracts in Queensland, buyers have a short period after signing to reconsider their decision.
This is known as the cooling off period.
It can provide an important protection for buyers, but it is not a free cancellation window and it does not apply to every property purchase. Understanding when it starts, when it ends and what happens if you use it can help you avoid an expensive misunderstanding.
What is the cooling off period in Queensland?
For many residential property contracts in Queensland, the statutory cooling off period is 5 business days.
Generally, the period starts on the day the buyer receives a copy of the contract signed by both parties. If the signed contract is received on a weekend or public holiday, the cooling off period starts on the next business day.
The period ends at 5pm on the fifth business day.
The exact timing matters. If you are considering terminating a contract, speak with your solicitor as early as possible rather than waiting until the final afternoon.
Can a buyer simply change their mind?
In some circumstances, yes.
A buyer who has not waived the cooling off period may terminate the contract during that period by giving the required written notice.
However, terminating under the cooling off provisions can come with a cost.
The seller may deduct a termination penalty of up to 0.25% of the purchase price from the deposit.
For example, on a $700,000 property, 0.25% is $1,750.
That is why the cooling off period should not be treated as a casual way to make an offer without being ready to proceed.
Does every property purchase have a cooling off period?
No.
One of the most important exceptions is a property purchased at auction.
If you are the successful bidder at a Queensland property auction, there is generally no cooling off period. Auction purchases are usually unconditional, which means buyers should complete their due diligence before bidding.
The cooling off period also does not apply to certain contracts entered into shortly after an unsuccessful auction where the buyer was a registered bidder, as well as some other excluded transactions.
Can it be waived or shortened?
Yes.
A buyer can waive the cooling off period or shorten it by giving written notice.
This can sometimes form part of negotiations, particularly in a competitive market, but giving up that protection should not be done without understanding the consequences.
Once waived, you should not assume you can simply change your mind after signing.
Cooling off is different from contract conditions
The cooling off period is also different from conditions such as finance or building and pest.
A finance condition, building and pest condition and the statutory cooling off period operate differently and can give rise to different rights and obligations.
Being within the cooling off period does not mean you should ignore the dates and requirements in the rest of your contract.
Before you sign
A contract for the purchase of property creates legal obligations.
Before signing, make sure you understand the contract, any special conditions, the relevant dates and whether the cooling off period will apply to your transaction.
If you are buying at auction, obtaining legal advice before auction day is particularly important because the usual cooling off protection generally will not be available if you are the successful bidder.
Need help reviewing a contract?
Jet Legal can review your Queensland property contract and explain the conditions, key dates and obligations that apply to your purchase.
Send your contract through to our team before you sign so you know exactly what you are agreeing to.
General information only. This article does not constitute legal advice. Your rights and obligations depend on your individual contract and circumstances.