What is a Cooling-Off Period and how does it effect you?

Understanding the concept of a cooling off period is important if you are purchasing residential property in Queensland.

In Queensland, the Buyer has the benefit of a 5-day statutory cooling off period. This gives the Buyer an option to cancel the contract during the cooling-off period should they decide that they do not want to proceed with the purchase.

Cooling off periods do not apply where:

• The property was sold at auction;

• The Buyer is a publicly listed corporation;

• If the coolingoff period has been waived by the Buyer (before the Contract Date); or

• If it has been shortened by the Buyer (after the Contract Date)

The Timing:

The beginning of the cooling-off period commences on the day the Buyer (or its solicitor) receives the contract.

The cooling-off period ends at 5:00 pm on the 5^th Business Day after the period starts.

Penalty for Cancelling During the Cooling-Off Period

The Seller is entitled to deduct 0.25% of the total purchase price from the Buyer’s deposit held in trust.

The balance of the deposit must be refunded within 14 days of the Seller receiving written notice of cancellation.

Its important buyers understand how this process works, particularly if you sign an unconditional contract. Our experienced solicitors and conveyancers can help you with this process.

Disclaimer: This advice is general in nature and is not intended to be legal advice. If you would like legal advice, please call our office on (07) 5619 0440 and we would be pleased to assist you.