Understanding the Cooling Off Period in Property Contracts

Buying a home is a significant decision, and sometimes, circumstances may change after signing a contract. That's where the cooling off period comes into play, offering buyers in Queensland a window of opportunity to reconsider their decision without facing severe penalties.

At BestLife Legal, we believe in empowering our clients with knowledge, so let's delve into the details of the cooling off period in property contracts.

What is the Cooling Off Period?

In Queensland, the standard REIQ contract allows for a cooling off period of 5 business days. This means that after signing a contract to purchase a residential property, you have five business days to reassess your decision and, if necessary, withdraw from the contract.

Exceptions to the Rule

It's essential to understand that certain scenarios exempt you from the cooling off period:

• Contracts for properties sold at auction

• Contracts entered into within 2 business days of an unsuccessful auction

• Contracts where the buyer was a registered bidder at the auction
  

When Does it Start and End?

The cooling off period begins upon receiving a copy of the contract signed by both parties. If you receive the contract on a non-business day, the period commences on the next business day. It ends at 5:00 pm on the 5th business day after it starts.

Termination and Penalties

During the cooling off period, you have the right to terminate the contract by giving written notice to the seller and their agent before 5:00 pm on the final day. However, be aware that the seller is entitled to retain 0.25% of the total purchase price as a penalty, deducted from the deposit paid under the contract.

Waiving the Cooling Off Period

You have the option to waive or shorten the cooling off period by giving written notice to the seller. It's important to note that waiving the cooling off period on an unconditional contract means relinquishing your right to terminate, except under unusual circumstances.

Why Waive?

Waiving the cooling off period may make your offer more competitive, especially in a competitive market where multiple buyers are vying for the same property. It can also provide the seller with greater certainty of your commitment to the purchase, which may be advantageous in negotiations.

Seek Legal Advice

Navigating property contracts can be complex, and it's essential to seek professional advice when making significant decisions. Our team of experienced lawyers at BestLife Legal is here to provide guidance and support throughout your property transaction journey. Don't hesitate to reach out if you have any questions or concerns.

The above is general information only, and should not be considered or treated as legal advice.