Q&A · Last reviewed 2026-05-01
What is a cooling-off period in Australia?
Most Australian states give residential property buyers a cooling-off period (3-5 business days) after contract exchange to terminate without major penalty. Auctions are exempt almost everywhere. Specific rules differ by state.
Cooling-off rules: NSW 5 business days (0.25% forfeit if cancelled), VIC 3 business days (full refund minus $100), QLD 5 business days (0.25% forfeit), WA + SA + TAS no statutory cooling-off period (negotiated case-by-case in contract), ACT 5 business days, NT 4 business days.
Auction purchases are exempt from cooling-off in NSW + VIC + QLD + ACT, at the fall of the hammer the contract is binding. Pre-auction private treaty offers are also typically not subject to cooling-off (the buyer waives it via Section 66W certificate in NSW).
Use cooling-off to: (1) finalise pre-approval into formal approval, (2) order pest + building inspections, (3) get a strata report (units), (4) confirm water/sewer/zoning checks. If anything turns up, you can walk away losing only the small forfeit (~$5K on a $1M purchase in NSW).
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Informational. Not financial advice. Verify with a licensed adviser appropriate to your circumstances.
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