07 Feb Everything You Need to Know about Cooling Off Period
Q1.How does the Cooling Off Period apply to Contracts?
A. A cooling off period applies to all Contracts for the sale of residential property in Queensland, other than:
- A Contract formed on a “sale by auction” or;
- Where the Buyer has obtained a Lawyers Certificate waiving the Cooling Off Period.
Q2. How long is the Cooling Off Period?
A. The cooling off period is 5 business days commencing on the date the Buyer becomes bound by the Contract or if that is not a business day, the first business day after that day. The Buyer becomes bound by the Contract when the Buyer receives the Contract signed by both the Buyer and Seller.
Q3. How do you terminate a Contract in the cooling off period?
A. A Buyer may terminate the Contract at any time during the Cooling Off Period by giving a signed and dated notice to the Seller to that effect.
Q4. What happens to any deposit?
A. The Seller must refund the deposit after the Contract is terminated however a termination penalty can be deducted by the Seller from the deposit. The penalty is 0.25% of the Contract price.
Q5. Can the Cooling Off Period be altered?
A. The Cooling Off Period can be altered by the Buyer and Seller themselves. To shorten or waive the Cooling Off period a Buyer must obtain a Lawyers Certificate (Form 32a) from an independent lawyer .