How it works

When does the cooling off period begin and end?

The statutory cooling off period is 5 business days. It generally begins on the day the buyer receives a copy of the contract signed by both parties, not on the day the buyer signs. If the signed contract is received on a weekend or public holiday, the period begins on the next business day. Receipt by an authorised representative, such as a solicitor acting on the buyer's behalf, can also start the period.

The cooling off period applies to the buyer only. It generally covers relevant residential property contracts, including houses, units, townhouses and residential land, and does not generally apply to commercial or primary production property.

Business days exclude weekends and Queensland public holidays, so a contract received on a Friday before a long weekend can give buyers more calendar time than five days might suggest. The period ends at 5pm on the fifth business day.

Important: Have the exact start and end date confirmed by your solicitor rather than calculating it yourself. Miscounting business days or missing a public holiday is an easy mistake with real consequences.

Exceptions

When does the cooling off period not apply?

The statutory cooling off period does not apply in every circumstance. The exceptions below are the ones set out in the legislation.

1
A sale by auction
There is no statutory cooling off period for a property sold at auction. Arrange building and pest inspections, finance approval and legal review before auction day. The Buying at Auction guide covers the full process.
2
A follow-up sale after an unsuccessful auction
If a property is passed in at auction, a private treaty contract with a registered bidder from that auction is exempt if it is entered into before 5pm on the second business day after the auction.
3
An option contract
A sale contract formed through the exercise of an option is exempt, as is the option contract itself.
4
Buying three or more lots at once
A buyer purchasing at least three lots at the same time is exempt from the statutory cooling off period.
5
A publicly listed corporation or its subsidiary
A buyer that is a publicly listed corporation, or a subsidiary of one, is exempt.
6
The State or a statutory body
A purchase by the State of Queensland or a statutory body is exempt.
Waiving the period

Waiving or shortening the cooling off period

A buyer may waive or shorten the cooling off period by written notice to the seller or the seller's agent. A contract can already be binding while still subject to cooling off and other conditions, so waiving the period does not create the contract's binding force. It removes a termination right that would otherwise exist for the remainder of the period.

Because that right is being reduced or given up, it is worth considering carefully and, where possible, with legal advice before agreeing, particularly if building and pest inspections or finance approval are not yet complete.

Using the cooling off period

How to terminate during the period

1
Confirm the deadline
Confirm the exact end date and time with your solicitor before deciding.
2
Decide whether to terminate
Contact your solicitor as soon as you are considering withdrawing, so they can guide the process and the timing.
3
Give signed written notice
Signed written notice of termination must reach the seller or the seller's authorised agent before 5pm on the final day. Arranging this through your solicitor, where possible, helps ensure it is delivered correctly and on time.

This page is general information, not legal advice. The cooling off period has specific legislative requirements and strict time limits. A Queensland solicitor should be engaged before signing a contract and before attempting to terminate one.

Deposit deductions

Deposit deductions and refunds

If a buyer validly terminates during the cooling off period, the seller may deduct an amount of up to 0.25% of the purchase price from the deposit paid. This is a maximum, not an automatic or fixed amount. The seller must refund the remaining deposit within 14 days after termination. The contract ends once valid notice has been given within the period; the legislation does not make payment of this amount a condition of that termination.

On a $1,500,000 purchase, the maximum deduction would be $3,750. On a $2,500,000 purchase, it would be $6,250.

A practical point

A seller may ask a buyer to waive or shorten the cooling off period as part of an offer. Before agreeing, understand how that right would change and seek legal advice where appropriate. Cooling off should not replace contract review, finance preparation or property investigations before signing.