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Cooling-off period state by state

The cooling-off period is the window after signing a contract during which a buyer can rescind with limited financial penalty. It varies by state, and the differences matter if you are an interstate buyer or buying property in multiple states.

The state-by-state table

NSW: 5 business days from exchange. Forfeit 0.25% of purchase price if you rescind. Auction exempt; many investment purchases waived via Section 66W.

VIC: 3 business days from signing. Forfeit $100 or 0.2% of purchase price (whichever greater). Auction exempt; purchase at or after auction exempt; properties zoned primarily industrial or commercial exempt.

QLD: 5 business days from receiving disclosure statement. Forfeit 0.25% of purchase price. Auction exempt. Can be waived by written notice signed by buyer.

SA: 2 clear business days from latest of contract date or disclosure receipt. Forfeit $100. Auction exempt; contracts made at auction exempt.

WA: No statutory cooling-off period. If you sign, you are bound unless the contract itself contains a cooling-off clause (rare).

TAS: No statutory cooling-off period.

ACT: 5 business days. Forfeit 0.25%. Auction exempt.

NT: 4 clear business days. Forfeit various amounts depending on contract.

The auction exception

In every state, buying at auction bypasses cooling-off. This is the single biggest risk in auction attendance: once the hammer falls, the contract is binding, you pay the deposit, and there is no wind-back.

What to do with a cooling-off period

Use it for the things you couldn’t complete before signing. In a hot market, vendors often require an “unconditional-on-signing” contract, in which case the cooling-off period is your only window for:

  • Formal (not just pre-approval) finance approval
  • Completed building and pest inspection review
  • Strata report review for apartments
  • Solicitor’s final review of the contract
  • Any property-specific searches (flood, easement, land tax)

If any of these flags a serious issue, you rescind during the cooling-off period and pay the small penalty. If everything lands clean, the contract continues to settlement.

Waivers via Section 66W (NSW)

In NSW, many investment or unconditional sales involve waiving cooling-off via a Section 66W certificate signed by your solicitor. Once waived, the contract is binding from exchange with no cooling-off protection. Vendors often require this for pre-auction offers or seller-preference contracts. Only waive after full diligence.

The single best tactic

Where state law allows, always retain the cooling-off period and do your diligence in those 3-5 business days. The small financial penalty for rescission is trivial compared to buying a property with a buried defect you could have caught in the window.