Cooling-Off Periods Explained: A State-by-State Guide for Private Sellers

When selling property privately in Australia, it’s essential to understand cooling-off periods—a legal window that allows buyers to reconsider their decision after signing a contract. These periods vary across states and territories and can impact the timing and certainty of your sale.

Let’s break down how cooling-off periods work, what they mean for sellers, and the rules in each state.

What Is a Cooling-Off Period?

A cooling-off period is a legally defined timeframe during which a buyer can withdraw from a signed contract of sale—typically without completing the purchase. It’s designed to give buyers time to:

• Finalise finance

• Conduct inspections

• Seek legal advice

• Reassess their decision

Important: Cooling-off periods apply only to private treaty sales. Auction sales are final—no cooling-off rights apply once the hammer falls.

Cooling-Off Periods by State and Territory

New South Wales (NSW)

• Length: 5 business days from the date of contract exchange

• Deadline: Ends at 5:00 PM on the fifth business day

• How to Cancel: Buyer must give written notice

• Penalty: 0.25% of the purchase price is forfeited

• Flexibility: Can be waived or varied by written agreement

Queensland (QLD)

• Length: 5 business days from when the buyer receives the signed contract

• Deadline: 5:00 PM on the fifth business day

• Penalty: 0.25% of the purchase price

• Refund Timeline: Deposit returned within 14 days

• Modifications: Can be shortened or waived in writing

Victoria (VIC)

• Length: 3 business days from contract signing

• Cancellation: Buyer must notify the seller in writing

• Penalty: Greater of $100 or 0.2% of the purchase price

• Exclusions: No cooling-off if purchased within 3 days of a public auction

Western Australia (WA)

• Mandatory Period: None

• Optional Period: Can be added to the contract by agreement

• Penalty (if included): Greater of $100 or 0.2% of the purchase price

South Australia (SA)

• Length: 2 business days

• Start Date:

  • If Form 1 is provided before signing, the period starts at contract exchange

  • If Form 1 is given after signing, the period begins upon receipt

• Seller Obligation: Cannot cancel once contracts are exchanged

• Penalty: Greater of $100 or 0.2% of the purchase price

Tasmania (TAS)

• Cooling-Off Period: Not available

• Legal Effect: Contracts are binding once signed—similar to auction conditions

Australian Capital Territory (ACT)

• Length: 5 business days from contract exchange

• Deadline: 5:00 PM on the final business day

• Penalty: 0.25% of the purchase price

• Modifications: Can be adjusted by written agreement

Northern Territory (NT)

• Length: 4 business days

• Deadline: Before close of business on day four

• Penalty: None—buyers can withdraw without financial loss

• Modifications: Can be waived, shortened, or extended in the contract

What Sellers Need to Know

• Only buyers can use the cooling-off period—sellers are bound once contracts are exchanged

• Auction sales are final—no cooling-off applies

• Penalties for buyer withdrawal vary by state

• Legal advice is essential to ensure your contract complies with local laws

Final Thoughts

Understanding cooling-off periods is crucial for private home sellers. It helps you:
✅ Set realistic expectations

✅ Avoid legal missteps

✅ Navigate buyer withdrawals with confidence

Each state has its own rules, so working with a qualified conveyancer or solicitor is the best way to protect your interests.

Need help preparing your contract or navigating state-specific rules? Visit salebyhomeowner.com.au to connect with trusted legal professionals and access expert support for your private sale.