When the contract has been formed (ie. both the seller and buyer have signed and dated the contract) under a private treaty (ie. not on-auction terms) the buyer has 5 working days to terminate the contract
without cause.
In Queensland, terminating the contract during the cooling off period will incur a statutory penalty of 0.25% of the purchase price.
If a buyer waives the cooling off period on an unconditional contract, termination without cause will be a breach of contract and will at the least result in loss of deposit plus compensation for the cost of reselling the property.
A buyer may waive their cooling off period for a number of reasons. For example, they may wish to make their offer more competitive in a situation where there are a number of other buyers wishing to buy the property – waiving the cooling off period may provide the seller with a higher level of certainty. Waiving a cooling off period is also common for land purchases, where no building and pest inspection is required and the buyer has secured finance or is making a cash offer.
A cooling off period is separate from other conditions in the contract being met.
If the other conditions in the contract are not met within their respective time frames, the contract may still be terminated in or outside of the cooling off period, or whether the cooling off period was waived or not.
*This article provides general information and opinions only and should not be mistaken for, or relied upon as legal advice. It is strongly recommended you contact a legal professional before making any decisions. You may also be interested in: