Cooling-Off Periods by State – A Guide for Private Home Sellers

A cooling-off period is a legally defined timeframe that allows buyers to reconsider their purchase and, if necessary, withdraw from the sale without completing the transaction.

The conditions of a cooling-off period depend on:

The method of sale – No cooling-off periods apply to auction sales.
State-specific regulations – Different States have varying timeframes and financial penalties if a buyer chooses to withdraw.

Here’s a breakdown of cooling-off periods across Australia, along with important legal considerations.

Cooling-Off Periods by State

New South Wales (NSW)

Duration: 5 business days from contract exchange.
Termination Deadline: 5:00 PM on the final day.
Withdrawal Process: Buyer must provide written notice to terminate.
Penalty Fee: 0.25% of the purchase price is deducted from the deposit.
Modifications: Buyers and sellers may waive, shorten, or extend this period via a written agreement.

Queensland (QLD)

Duration: 5 business days, starting when the buyer receives their signed contract copy.
Termination Deadline: 5:00 PM on the fifth business day.
Penalty Fee: 0.25% of the purchase price, deducted from the deposit.
Deposit Refund Timeline: Within 14 days of cancellation.
Modifications: The cooling-off period can be waived or shortened in writing.

Victoria (VIC)

Duration: 3 business days from contract exchange.
Termination Process: Buyer must notify the seller in writing.
Penalty Fee: The greater of $100 or 0.2% of the purchase price is deducted.
Exceptions: Properties purchased within three days of a public auction do not qualify for cooling-off rights.

Western Australia (WA)

Mandatory Cooling-Off Period: None.
Voluntary Cooling-Off Period: Sellers and buyers may include one in the contract.
Penalty Fee (if cooling-off is included): The greater of $100 or 0.2% of the purchase price.

South Australia (SA)

Duration: 2 business days.
Triggering the Cooling-Off Period:
- If the buyer receives Form 1 disclosure before signing, the cooling-off period starts upon contract exchange.
- If Form 1 is delivered after contract signing, the cooling-off period begins once Form 1 is received.
Vendor Obligations: Sellers are bound to the sale once contracts are exchanged—only buyers may cancel.
Penalty Fee: The greater of $100 or 0.2% of the purchase price.

Tasmania (TAS)

Mandatory Cooling-Off Period: None.
Legal Position: Once contracts are signed and exchanged, the sale is final—similar to auction sales.

Australian Capital Territory (ACT)

Duration: 5 business days from contract exchange.
Termination Deadline: 5:00 PM on the last business day.
Penalty Fee: 0.25% of the purchase price is deducted from the deposit.
Modifications: The cooling-off period can be altered in writing.

Northern Territory (NT)

Duration: 4 business days.
Termination Deadline: Before the end of the fourth business day.
Penalty Fee: None—buyers can withdraw without financial loss.
Modifications: The cooling-off period can be waived, reduced, or extended within the contract agreement.

Key Considerations for Sellers

Cooling-off periods protect buyers, allowing time for contract reviews, financing finalization, or property inspections.
Once contracts are exchanged, sellers cannot cancel the sale—only buyers have cooling-off rights.
Auction sales do not allow cooling-off periods—all transactions are final once bidding concludes.
Sellers should consult a conveyancer or solicitor to ensure compliance with State-specific regulations.

Final Thoughts

Understanding cooling-off periods helps private sellers manage buyer expectations and streamline the legal process. Each State has unique rules, but in general:

✅ Auction sales do not have cooling-off periods.

✅ Penalties for buyer withdrawal vary by State (except in NT).

✅ Legal compliance ensures smooth transactions—seek expert guidance if needed.

Looking for legal support? salebyhomeowner.com.au connects sellers with trusted conveyancers to ensure secure contract preparation and settlement assistance.