Cooling-off periods when buying property, state by state
A cooling-off period lets a buyer withdraw from a signed contract within a set number of business days, usually for a small penalty. It is set by each state's legislation, ranges from five business days down to none, applies only to private-treaty sales, and never applies to auctions anywhere in Australia. Because the rules and triggers vary and are occasionally amended, confirm the current position for your contract with a conveyancer before relying on it.
The cooling-off period by state
Each state and territory sets its own cooling-off rule in legislation, so the period, the penalty and even the moment the clock starts differ depending on where you buy. The table below is the residential private-treaty position; treat it as orientation, and confirm the current rule for your specific contract.
| State / Territory | Cooling-off period | Penalty to withdraw |
|---|---|---|
| NSW | 5 business days | 0.25% of price; waivable by a s66W certificate |
| VIC | 3 clear business days | $100 or 0.2% of price, whichever is greater |
| QLD | 5 business days | 0.25% of price |
| ACT | 5 business days | 0.25% of price |
| NT | 4 business days | Varies |
| SA | 2 clear business days | Varies; period starts when the Form 1 is served |
| WA | None | Protect yourself with contract conditions instead |
| TAS | None | Protect yourself with contract conditions instead |
Off-the-plan purchases often carry a longer period (commonly around ten business days), and the rules can differ again for those and for commercial sales — another reason to confirm with your conveyancer rather than rely on the headline number.
How the period is counted
When the clock starts and stops
The period generally starts when you receive a copy of the contract signed by both parties, and ends at 5pm on the final business day — so weekends and public holidays do not count, and a contract received late on a Friday gives you more calendar time than the number of days suggests. To exercise the right you must give written notice before the deadline, so diarise the exact date rather than estimating it.
States with a different trigger
Not every state starts the clock at signing. In South Australia, for example, the period runs from when the seller serves the Form 1 vendor's statement, not from the contract date. Differences like this are precisely why the safe move is to have your conveyancer confirm the exact deadline for your contract.
What it costs to use it
Cooling off is rarely free, but it is cheap relative to the alternative. The penalty is set by legislation and is typically a small percentage of the price — around 0.25% in several states, and in Victoria the greater of $100 or 0.2%. Against the cost of being locked into a purchase you have come to regret, it is a modest price for an exit. These figures are legislated and change only occasionally, but they do change, so treat the numbers here as a guide and confirm the current penalty before you rely on it.
The auction trap
There is no cooling-off period at auction — in any state. The moment the hammer falls you are unconditionally bound. In Victoria the protection also drops away for private sales made within three business days either side of a scheduled auction. If you are buying at auction, all your due diligence has to happen before you bid — see auction-day due diligence.
No cooling-off (WA, TAS): use conditions
Where there is no statutory cooling-off period, your protection is the contract itself. Make the offer subject to conditions — finance approval, a satisfactory building and pest inspection — and have a solicitor or settlement agent review it before you sign. An unconditional offer in these states locks you in with no exit, so the conditions are doing the job the cooling-off period does elsewhere.
Frequently asked questions
How long is the cooling-off period when buying a house?
It depends on the state: five business days in NSW, Queensland and the ACT, four in the NT, three in Victoria, two in South Australia, and none in WA or Tasmania. It applies to private-treaty sales only, and the rules are occasionally amended, so confirm the current position for your contract.
Is there a cooling-off period at auction?
No. There is no cooling-off period for properties bought at auction anywhere in Australia — an auction purchase is unconditional. In Victoria the protection also does not apply to private sales within three business days either side of an auction.
What does it cost to pull out during the cooling-off period?
Usually a small penalty deducted from your deposit — commonly around 0.25% of the purchase price (in Victoria, $100 or 0.2%, whichever is greater). It is far cheaper than being locked into a purchase you regret. Confirm the current figure, as penalties are set by legislation and can change.
When does the cooling-off period start and end?
Generally when you receive the contract signed by both parties, ending at 5pm on the final business day; weekends and public holidays are excluded. Some states use a different trigger — in South Australia it runs from when the Form 1 is served — so confirm the exact deadline.
What if my state has no cooling-off period?
In WA and Tasmania there is no statutory cooling-off period, so make your offer subject to conditions such as finance and a satisfactory inspection, and have it reviewed before signing. An unconditional offer leaves you no way out.
Can the cooling-off period be waived?
In some states, yes — in NSW a buyer can waive it with a s66W certificate signed by their solicitor or conveyancer, which makes the contract immediately binding. Vendors sometimes ask for this in competitive sales; take advice before agreeing.
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