The cooling-off period is often misunderstood by buyers in Queensland. While it provides an opportunity to reconsider a purchase, it’s not a “free exit” from the contract—and that’s where many people get caught out.
In most residential contracts, buyers are entitled to a 5 business day cooling-off period starting from when they receive a fully signed contract. During this time, a buyer can terminate the contract for any reason. However, what’s often overlooked is that this comes at a cost.
If a buyer exercises their right to terminate during the cooling-off period, the seller is entitled to retain a termination penalty—currently 0.25% of the purchase price. On an $800,000 property, that’s $2,000.
Many buyers are surprised to learn that changing your mind isn’t entirely consequence-free. Another common misconception is that the cooling-off period replaces the need for proper due diligence.
In reality, buyers should still rely on building and pest conditions, finance clauses, and professional advice to protect their position. The cooling-off period is more of a safety net than a strategy. It’s also important to know that the cooling-off period can be waived, often in competitive markets, or may not apply in certain circumstances (such as at auction).
Understanding how the cooling-off period actually works can help buyers make informed decisions—and avoid costly surprises.
Our friendly Property Officers at McNamara Law are here to help should you need advice in this regard. Please contact us on 1300 285 888.
