So you’ve signed a contract to buy a property in Queensland—but now you’re having second thoughts. Can you back out of it? In some cases, yes—but only if you act quickly.
In Queensland, most residential property contracts (excluding auctions) come with a 5 business day “cooling-off period.” This legal provision offers buyers a short window of time to reconsider their decision.
🧊 What Is the Cooling-Off Period?
The cooling-off period is your legal right as a buyer to cancel the contract without providing any reason, as long as it’s done within the set time limit.
This period starts from the day you receive a fully signed contract from the seller and lasts 5 clear business days. Business days exclude weekends and public holidays.
⏱️ Key Facts to Know:
- When it starts: The cooling-off period begins the day you, the buyer, receive the signed contract.
- Duration: It lasts 5 business days—weekends and public holidays do not count.
- How to cancel: You must provide written notice to the seller (or their agent/lawyer) within this timeframe.
- Termination fee: The seller is entitled to deduct up to 0.25% of the purchase price as a penalty if you cancel.
💡 Example:
If your purchase price is $600,000, cancelling within the cooling-off period could cost you $1,500 in termination fees.
❗ When Does the Cooling-Off Period NOT Apply?
The cooling-off period is not available in the following situations:
- You purchase the property at auction
- You sign the contract within 2 business days after a property was passed in at auction
- You waive your cooling-off rights in writing (often done to make an offer more competitive)
⚠️ Important: Waiving your cooling-off rights may increase your legal and financial risk. We strongly recommend seeking legal advice before doing so.
✅ Your Legal Responsibilities as the Buyer
If you wish to exercise your cooling-off rights, it is critical to act within the allowed timeframe and follow correct procedures. This includes:
- Giving written notice to the seller or their agent before the 5-day period expires
- Ensuring the notice is clear and unambiguous
- Retaining evidence that notice was properly delivered (e.g., email confirmation or registered post receipt)
Failing to meet these requirements may result in the termination being invalid—meaning you remain bound by the contract.
📎 Learn More from Reputable Sources:
📞 Need Help Cancelling a Contract?
If you’ve signed a residential property contract in Queensland and are reconsidering your decision, W & G Lawyers can help you understand your legal rights and options. Whether you’re within the cooling-off period or facing more complex circumstances, our property law team is here to assist.
👉 Contact W & G Lawyers Today for confidential legal advice and guidance.
Disclaimer
This article is intended for general informational purposes only and does not constitute legal advice. It should not be relied upon as a substitute for legal advice specific to your circumstances. Property transactions can involve significant legal and financial consequences.
For guidance specific to your contract or situation, please contact W & G Lawyers to speak with an experienced property solicitor.