What Is A Cooling Off Period under a Contract of Sale?

If you have signed a Contract for the sale of a residential or a small rural property, the Contract will allow for a cooling off period. The time will allow you to consider the offer made, and starts from the date that you sign the Contract, not the date the seller signs it.

If during this period you decide that you no longer want to purchase the property, you can cool off by meeting the requirements of the Contract and notifying the relevant parties. This will entitle you to a full refund of any money paid by way of deposit, except for $100.00 or 0.2% of the purchase price (whichever is more), if you end the Contract this way.

However, there are circumstances where the cooling off period will not apply. These circumstances can be if you bought the property at a publicly advertised auction, the property is used for industrial or commercial purposes or is more than 20 hectares in size and is used primarily for farming. These are just a few reasons why it is best for our office to check the Contract and Vendor Statement before you sign.

If you would like more information regarding a Contract of Sale and its cooling off period, please contact our office on (03) 9707 1155.