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Buying
Cooling-off periods, state by state
How long you have to change your mind after signing a contract in NSW, Victoria, Queensland and WA, and what it costs if you do.
By Mia Callahan
· 3 min read
A cooling-off period gives a buyer a short window after signing a contract to pull out of the purchase. It exists so that people who sign quickly, often under pressure at an open home, have time to finish their checks. It is not the same in every state, and in some situations it does not apply at all. Here is how it works where we sell, in plain terms.
New South Wales
For most residential purchases by private treaty, the buyer has a cooling-off period of five business days, starting from the day contracts are exchanged. If you withdraw during that time, the seller can keep 0.25% of the purchase price. On a $1.5 million house that is $3,750, which is real money but far less than the cost of buying the wrong home.
The cooling-off period can be shortened or waived if the buyer's solicitor signs a certificate, known as a section 66W certificate. Sellers sometimes ask for this when several buyers are competing. Only agree to it once your inspections and finance are finished.
Victoria
In Victoria the period is three business days from the day you sign. If you end the contract during that time, the seller can keep the greater of $100 or 0.2% of the price. The notice must be in writing, and it is worth having your conveyancer send it so the timing is beyond dispute.
Queensland
Queensland also gives five business days, but the clock starts when the buyer receives a copy of the contract signed by both parties. Terminating during the cooling-off period means paying the seller 0.25% of the purchase price. Like NSW, the period can be waived or shortened by agreement.
Western Australia
WA is the odd one out: there is no automatic cooling-off period for residential property. Once you sign an offer and acceptance and the seller accepts, you are bound by it, subject to any conditions written into the contract. That is why WA buyers rely heavily on special conditions, such as a finance clause or a building inspection clause, which let them withdraw if something specific goes wrong.
When there is no cooling-off at all
In NSW, Victoria and Queensland, a property bought at auction has no cooling-off period. The same usually applies if you buy on the same day the property was passed in at auction. When the hammer falls, the contract is unconditional, so every check has to be done before you bid.
That means getting the building and pest report, reading the contract and strata documents with your conveyancer, and having formal finance approval in place before auction day. If any of that is not ready, it is safer not to bid.
What to do during the cooling-off period
Treat the window as working time, not a safety net you might not need. In a typical week we would expect a buyer to:
- Book the building and pest inspection for the first or second day.
- Send the contract to a conveyancer if they have not already reviewed it.
- Confirm the lender's valuation and unconditional approval.
- Get a home insurance quote, especially for coastal, flood-prone or bushfire-prone areas.
- Visit the property again at a different time of day.
A note on deadlines
Business days exclude weekends and public holidays, and the deadline usually ends at 5 pm on the last day. If you are going to withdraw, do it in writing and early. A notice sent at 5.02 pm can be argued about; one sent at noon cannot.
The rules above are a general summary and do change from time to time. Your conveyancer or solicitor should confirm exactly what applies to your contract before you sign.
