Cooling-off periods: why you must check your state before you sign

A cooling-off period is a window of time after you sign a contract to buy a property during which you may be able to withdraw from the purchase. It exists to give buyers a short breathing space after a decision that is usually made under pressure. It is one of the most useful protections a buyer has — and one of the most misunderstood.

It is not the same everywhere

Property law in Australia is state and territory law. That means the length of the cooling-off period, whether a penalty applies if you use it, how the period is counted (business days or calendar days) and whether it applies at all are all set differently depending on where the property is. A buyer who has purchased in one state cannot assume the same rules apply in the next.

We deliberately do not publish a state-by-state table here, because the rules change and a stale number is worse than no number. The place to confirm the current rule is your state’s consumer-affairs or fair-trading body, and the person to confirm what applies to your contract is your solicitor or conveyancer.

When there is no cooling-off period at all

In most jurisdictions, buying at auction means there is no cooling-off period. Some contract types and some circumstances can also remove or shorten it — for example where a buyer has waived it, or where the sale is structured in a particular way. This is precisely why the question has to be asked before the pen comes out: once the contract is signed, the answer is already fixed.

Four questions to ask your solicitor before you sign

1. Does a cooling-off period apply to this sale?
2. How long is it, and from what moment does it start counting?
3. Is there a penalty for using it, and how much?
4. Exactly how do I exercise it if I need to — in writing, to whom, by when?

Get the answers in writing. If the answer to the first question is “no”, make sure your finance and inspections are in order before you sign, because there will be no second chance.

Where TNC Group fits

We do not give legal advice. Our job is to make sure every client has a solicitor or conveyancer reviewing the contract before signing, that these four questions are asked, and that the finance and property timelines are lined up so that the cooling-off period — if there is one — is never the thing that saves the deal.

Next step

If you want the legal, finance and property sides of your purchase managed together, book a free 15-minute call: https://leads.leads.tncgroup.com.au/widget/booking/VIiJOVAo7mhEsE3xLNrb

General information only — not legal advice. Cooling-off rules vary by state and territory and by the type of sale, and change over time. Speak to your solicitor or conveyancer about the contract in front of you.