When purchasing residential property in Queensland, buyers are entitled to a statutory cooling-off period under the Property Occupations Act 2014 (QLD). This cooling-off period allows buyers a short timeframe to reconsider their decision to purchase the property.

The cooling-off period is five business days and begins on the first business day after the Buyer receives a copy of the fully executed contract signed by all parties, as outlined in Section 166 of the Property Occupations Act 2014 (QLD). If the contract is received on a weekend or public holiday, the cooling-off period starts on the next business day. The cooling-off period ends at 5:00 pm on the fifth business day. Once the cooling-off period expires, the Buyer no longer has the right to terminate the contract under this provision.

Certain transactions are exempt from the cooling-off period. These may include (but are not limited to):

• Sales conducted by auction.
• Follow-up sales after an unsuccessful auction, provided the sale occurs before 5:00pm on the second business day and the buyer was a registered bidder at the auction.
• Sales under an option contract.

Buyers may choose to waive their rights under the cooling-off period by providing and signing written notice to the seller when signing the contract.

If a Buyer wishes to terminate the contract during the cooling-off period, they must provide written notice to the Seller. The Seller is entitled to deduct a termination penalty of up to 0.25% of the purchase price from the deposit. Any remaining deposit shall be refunded to the Buyer. It is important to note that if no deposit has been paid, then the Seller may not be entitled to claim the termination penalty against the Buyer.

The cooling-off period is a statutory safeguard designed to protect buyers of residential property in Queensland. Buyers should ensure they understand the terms and conditions of the contract and seek legal advice if they are uncertain about any aspect of the process.

The property law experts at Bickell & Mackenzie can help you with every aspect of buying and selling property. To make an appointment, contact our office on: (07) 3260 8700 or email: info@bimalaw.com.au