What Is a Cooling Off Period?

A cooling off period lets you reconsider your home purchase within the specified time.

A cooling off period allows you to change your mind about the purchase of your home as long as you do so within the time stated.

Cooling off periods vary between states and territories, so it’s important to check with your solicitor to make sure the cooling off period applies before signing a contract.  Cooling off periods only apply to private treaty sales, not properties bought at auction.

Reasons why you may withdraw during the cooling off period

Some common reasons include:

  • The home loan application is not approved by a lender
  • A building and pest inspection or strata report reveal previously unknown issues with the property
  • A buyer’s financial situation changes, like losing their job, and they can no longer afford the property

How does withdrawal process work?

If you wish to withdraw from the purchase contract, you will need to notify the seller’s real estate agent in writing of your intention to withdraw from the purchase.  Your solicitor or conveyancer will be able to assist with preparing a letter on your behalf and delivering it to the agent before the end of the final day of the cooling off period.

The article is provided for general information and has been prepared and provided without considering any person’s financial situation, needs or objectives. You should consider its appropriateness to your own situation before making any decisions.

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