What is cooling-off period?
Cooling-off is a statutory window (typically 3-5 business days, varying by state) after signing a property contract where the buyer can withdraw with a small penalty, usually 0.20-0.25% of the purchase price.
Cooling-off is the statutory withdrawal window after a buyer signs a property contract. The buyer can rescind for any reason during the window with a small penalty, typically 0.20-0.25% of the purchase price. The period varies by state: NSW 5 business days, VIC 3 business days, QLD 5 business days, SA 2 business days, WA no statutory cooling-off, TAS no statutory cooling-off, ACT 5 business days, NT 4 business days.
Cooling-off does NOT apply to auction purchases, once the hammer falls or contracts are exchanged on auction day, you're committed without a cooling-off window. This is why pre-auction due diligence (pre-approval, building & pest inspection, contract review by your conveyancer) is much more critical for auction buyers.
The cooling-off penalty is paid out of the deposit. The remainder of the deposit is refunded. Cooling-off can be waived by the buyer (some sellers require this to consider 'pre-auction' or 'firm' offers); waiving it is legally binding and should only be done with conveyancer advice.
Also called
cooling off period · rescission period
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General information only, not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.