The buyer’s right, on the sale contract
This page is about the buyer’s cooling-off on the contract of sale. It is a different right from the cooling-off some states give a seller on an agency agreement, such as NSW’s one business day after signing with an agent unless the seller waived it on the approved form, which does not arise when there is no agent. In NSW, when a home is sold by private treaty, the buyer has a cooling-off period and the vendor does not have the same right; NSW lists sellers among those with no cooling-off period, because once contracts are exchanged the seller is legally bound to complete the agreement.
The deadline, the notice and the deposit, state by state
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NSW
- The window
- 5 business days. It runs from the moment of exchange until 5pm on the fifth business day after exchange day. For a property sold off the plan, the period is 10 business days.
- What you keep
- A buyer who withdraws pays the vendor 0.25% of the purchase price, which works out to $250 for every $100,000. Because of that, NSW notes, a buyer can pay 0.25% to exchange, with the balance (usually 9.75%) due before the cooling-off period ends.
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VIC
- The window
- Three clear business days, on residential and small rural properties sold privately, at any price, with exceptions that include a purchase within three clear business days before or after a public auction. It runs from the date the buyer signs the contract, not the date you sign it.
- How notice comes
- In writing, to you, your estate agent or other agent.
- What you keep
- The buyer is entitled to a full refund of money paid, usually the deposit, less $100 or 0.2% of the purchase price, whichever is greater.
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QLD
- The window
- 5 business days, starting the day the buyer receives their copy of the contract with both parties’ signatures; if that falls on a weekend or public holiday, it starts on the next business day.
- How notice comes
- In writing, to you or your agent, by 5pm on the 5th day, delivered in person, by email or by fax.
- What you keep
- You may keep a penalty of up to 0.25% of the purchase price out of the deposit, and must refund the rest within 14 days.
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SA
- The window
- 2 clear business days, beginning when the buyer receives the vendor’s statement (Form 1) or when the contract is signed, whichever happens last. The buyer need give no reason.
- What you keep
- Not covered here.
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ACT
- The window
- It begins when the contract is made and ends at 5pm on the 5th working day after that.
- What you keep
- The buyer forfeits 0.25% of the purchase price to the seller, and that amount may be recovered from the deposit.
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NT
- The window
- It starts the day the contract is last signed by either party and exchanged. Its length is not covered here.
- What you keep
- The Territory’s page says the buyer can cancel without penalty or explanation.
- Changing it
- The buyer and seller can negotiate and agree to shorten it, lengthen it or drop it.
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WA
Western Australia has no mandatory cooling-off period for real estate contracts. A buyer who needs a loan completes and signs the contract’s finance clause box, and if the lender does not grant the loan, the contract will not bind the buyer.
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TAS
Not covered here.
Each state also lists sales with no cooling-off at all, auctions among them; the official pages in the sources below set them out.
When a buyer pulls out late
Queensland says that after 5pm on the final day, the buyer must follow through on the contract and buy the property, which remains subject to the terms of the contract.
A buyer who fails to complete after that is a matter for your solicitor or conveyancer. Victoria’s page for sellers advises seeking independent legal advice if a buyer defaults on the contract or the deposit. In Western Australia, a buyer who cannot meet the agreed settlement date may have to pay penalty fees to the seller.
A buyer who leaves before anything is signed has not walked away from a sale at all: job 03 sets out when a sale becomes binding in each state.