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What Every Buyer Should Know About Cooling-Off Period QLD
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You’ve just signed the contract on a Cairns property. The excitement is real, but 24 hours later, doubt creeps in. Maybe the building inspection you rushed through wasn’t thorough enough. Maybe your mortgage broker’s just flagged something unexpected. Or maybe you’ve realised the property’s not quite right.
Here’s the good news: in Queensland, you’re not trapped. The cooling-off period in QLD gives you five business days to walk away from a residential property contract – legally and without losing your entire deposit.
With Queensland’s property market surging (the state recorded 531,573 property sales worth $498.4 billion in 2024), that five-day window matters more than ever. Competition’s fierce, decisions happen fast, and buyers need every protection available.
Quick Answers
- You have 5 business days to cancel a residential property contract after signing
- The period ends at 5pm on the fifth business day – not a minute later
- The Seller has the right to claim 0.25% of the purchase price from you if you cancel during this time
- Written notice is required before the deadline to terminate the contract
- Some sales are exempt, including properties purchased at auction
- Be in writing (email, letter, or fax are acceptable)
- Clearly state your intention to terminate the contract
- Include the property address and contract details
- Be delivered before the deadline
- Purchase price: $650,000
- Penalty: $1,625 (0.25% of $650,000)
- Deposit paid: $32,500 (5%)
- You receive back: $30,875
- Properties purchased at auction
- Sales within two business days after an unsuccessful auction (if you were a registered bidder)
- Contracts formed through exercising an option
- Sales to publicly listed corporations or their subsidiaries
- Complete building and pest inspections before signing
- Confirm unconditional finance approval
- Have your conveyancer review the contract thoroughly
- Understand you’re committing 100% – backing out means losing your full deposit and potentially facing legal action
What Is the Cooling Off Period in QLD?
The cooling-off period in QLD is a legal safeguard built into residential property contracts under the Property Occupations Act 2014. It gives buyers the right to cancel a contract of sale within five business days of receiving the fully signed contract – no questions asked, no explanations required.
Think of it as a pressure valve. Property decisions happen under stress, with agents, timelines, and market competition all pushing buyers to commit fast. The cooling-off period creates breathing space to review your decision with a clear head.
It’s not a loophole or negotiating tactic. It’s a consumer protection measure designed to prevent buyers from being locked into major financial commitments before they’ve had time to properly assess the property, confirm their finance, or seek professional advice from a conveyancer in Cairns or elsewhere in Queensland.
How Long Is the Cooling-Off Period in Queensland?
The cooling-off period in QLD lasts exactly five business days. But there’s a catch: business days only. Weekends and public holidays don’t count.
Here’s how it works: if you receive the signed contract on a Friday afternoon, the period doesn’t start until Monday. It then runs Monday through Friday (assuming no public holidays), ending at 5pm sharp on Friday.
That 5pm deadline is non-negotiable. Even if your termination notice arrives at 5.01pm, you’ve lost your right to cancel under the cooling-off period. The contract becomes binding, and walking away could mean losing your entire deposit plus facing potential legal action from the seller.
When Does the Cooling Off Period Start?
The cooling-off period starts the day you receive a copy of the contract signed by both you and the seller. Not when you sign. Not when the agent emails it. When you receive the fully executed contract.
If that day falls on a Saturday, Sunday, or public holiday, the period begins on the next business day.
If there’s ever a dispute about when you received the contract, the onus is on the seller to prove the delivery date. Keep records of all correspondence.
How to Cancel a Residential Property Contract During Cooling Off
To terminate a contract during the cooling-off period, you must provide written notice to the seller or their agent before 5pm on the fifth business day.
The notice must:
Don’t wait until the last minute. Email servers crash, letters get delayed, and faxes jam.
And here’s a critical point: telling your conveyancer or solicitor isn’t enough. They need time to prepare and send the formal termination notice on your behalf. Don’t assume they can do it instantly.
What Does It Cost to Cancel During the Cooling-Off Period?
You won’t walk away free. The seller is legally entitled to retain 0.25% of the purchase price from your deposit. The rest of your deposit must be refunded within 14 days.
Example:
Is $1,625 worth avoiding a $650,000 mistake? For most buyers facing genuine concerns about the property, finance, or personal circumstances, the answer is yes.
When the Cooling Off Period Doesn’t Apply
Not every residential property sale in Queensland includes a cooling-off period. The exemptions matter, particularly in competitive markets where sellers often push for these conditions.
The cooling-off period does NOT apply to:
In Cairns and regional Queensland, auction sales are less common than private treaty sales, so most buyers will have cooling-off rights. But always check your contract and confirm with your conveyancer.
Can You Waive the Cooling Off Period?
Yes. Buyers can waive or shorten the cooling-off period by providing written notice to the seller. In hot markets like Cairns, waiving cooling-off rights can make your offer more attractive to sellers.
But waiving this protection is risky. You’re removing your safety net before you’ve completed inspections, confirmed finance, or reviewed the contract with your solicitor.
If you’re considering waiving your cooling-off rights:
Never waive cooling-off rights just because an agent suggests it. Get independent legal advice first.
What to Do During the Cooling-Off Period
Many buyers see the cooling-off period as a safety net: something you only rely on if the purchase starts to unravel. But it can also be a valuable window to confirm key details and move forward with greater confidence.
That said, it’s important to be realistic about what can actually be achieved in five business days. Some steps, such as finance approval and inspection bookings, often take longer. For that reason, wherever possible, buyers should complete their due diligence before signing the contract, rather than relying on the cooling-off period alone.
If you have signed the contract quickly in order to get the ball rolling, it’s best to use this time to finalise checks already underway, and seek urgent legal advice if you have any last minute concerns.
If you feel confident in your decision, you can proceed as normal. Otherwise, you may exercise your right to terminate the contract if serious concerns arise.
When Professional Help Matters
The cooling-off period in QLD gives you time, but time’s useless without expertise. Building inspectors spot structural issues. Pest controllers find termites. And conveyancing solicitors identify contract problems that could cost you thousands.
Your conveyancer reviews the contract for unusual clauses, confirms settlement timelines, checks title searches for encumbrances or easements, and ensures you understand exactly what you’re buying. They’ll also handle the termination paperwork if you decide to cancel – and do it correctly so you don’t lose your cooling-off rights through administrative errors.
At Cairns Conveyancing Solicitor, we’ve seen buyers discover deal-breaking issues during the cooling-off period countless times. An undisclosed drainage easement. A building approval that was never finalised. A zoning issue that prevents the planned renovation. These things don’t emerge until your conveyancer digs into the details.
Don’t wait until day four to engage professional help. Contact a conveyancer as soon as you sign the contract. Those five business days pass faster than you think.
Frequently Asked Questions
Can I cancel a property contract after signing in Queensland?
Yes, if the contract includes a cooling-off period (most residential property contracts do). You have five business days from receiving the signed contract to terminate it by providing written notice before 5pm on the fifth business day.
How much will I lose if I cancel during the cooling-off period?
You’ll forfeit 0.25% of the purchase price, which the seller deducts from your deposit. The remaining deposit must be refunded to you within 14 days.
Do all Queensland property sales have a cooling-off period?
No. Properties purchased at auction, sales within two business days after an unsuccessful auction (if you were a bidder), option contracts, and sales to corporations are exempt from cooling-off provisions.
Can I extend the cooling-off period in Queensland?
Only with the seller’s written agreement. The seller isn’t obligated to grant an extension, and without their consent, the standard five business days stands.
What happens if I miss the 5pm deadline?
You lose your right to cancel under the cooling-off period. The contract becomes binding, and walking away could mean losing your entire deposit and facing legal consequences.