5 Things Every Buyer Should Know About Cooling-Off Periods in Queensland

When you sign a contract to buy a property, you do not have to be locked in from that moment forward.

Queensland law gives buyers a cooling-off period — a short window after signing to reconsider the purchase, seek legal advice, and if necessary, walk away. Most buyers have heard of it. Far fewer understand exactly how it works, when it applies, and what it costs to use it.

Here is what you need to know before you sign.

What Is a Cooling-Off Period in Queensland Real Estate?

A cooling-off period is a legally protected timeframe in which a buyer can cancel a property purchase contract without the seller’s agreement.

In Queensland, the cooling-off period is five business days. It begins from the day the buyer receives a copy of the signed contract.

This applies to residential property sold by private treaty — that is, standard sale by negotiation through a real estate agent. It is not a courtesy offered by the agent or the seller. It is a right established under Queensland property law.

How the 5 Business Days Are Counted

The cooling-off period starts the day you receive your signed copy of the contract — not the day you sign it, and not the day the seller signs it. The starting point is when the signed document is formally in your hands.

For this reason, it is strongly recommended that buyers request a time-stamped and dated receipt when they receive the signed contract. This removes any ambiguity about when the period officially begins and when it expires.

Five business days can pass quickly. If you have any doubts about the property, the contract terms, or your financial position, act early rather than waiting until the final day.

What Happens Before You Sign — The Pre-Contract Requirements

Queensland law includes a requirement that buyers receive an unsigned copy of the contract and a relevant consumer guide at least one business day before they sign.

This is designed to give buyers time to review the terms before committing.

If a buyer chooses to waive this one-day requirement — for example, to move quickly on a property — a waiver form approved by the Office of Fair Trading must be signed before the contract is finalised. This waiver does not remove the cooling-off period itself. It only waives the pre-contract waiting period.

If you are ever unsure whether the correct process has been followed, speak with a property solicitor before signing.

Cooling-Off Periods Do Not Apply to Auctions

This is one of the most important distinctions in Queensland property law.

If you purchase a property at auction, there is no cooling-off period. When the hammer falls and you are the highest bidder, the contract is binding immediately.

The same applies if you sign a contract on the day of an auction or within two business days before a scheduled auction — in that circumstance, the cooling-off period may also not apply.

Auction buyers should complete all due diligence — building and pest inspections, legal review, and finance confirmation — before the auction takes place, not after.

The Cost of Walking Away During the Cooling-Off Period

Using the cooling-off period is not free.

If a buyer exercises their right to cancel during the five-business-day window, they are generally required to pay a penalty of 0.25 per cent of the purchase price to the seller. On a $1 million property, that amounts to $2,500.

This penalty exists to compensate the seller for the time the property was off the market while under contract.

To cancel, the buyer must provide written notice of termination to the real estate agent within the cooling-off period. Verbal notice is not sufficient. The notice must be in writing, and it must be delivered before the period expires.

If a buyer attempts to cancel after the cooling-off period has ended, the consequences are significantly more serious and may involve the forfeiture of the full deposit or legal action. This is why obtaining proper legal advice before signing — and acting quickly if doubts arise — is essential.

Frequently Asked Questions About Cooling-Off Periods

Does the cooling-off period apply to all Queensland property sales?

No. It applies to residential property sold by private treaty. It does not apply to properties purchased at auction, or in certain other circumstances outlined in Queensland property legislation.

Can the cooling-off period be extended?

Yes, in some circumstances the cooling-off period can be extended by agreement between the buyer and seller. A solicitor can assist with this if needed.

Can the seller cancel during the cooling-off period?

No. The cooling-off period is a right that belongs to the buyer, not the seller. The seller is bound by the contract during this time.

What is the best way to protect myself during the cooling-off period?

Engage a property solicitor as soon as you receive your signed contract. Review the contract carefully, confirm your finance, and if you have any concerns about the property’s condition, arrange a building and pest inspection promptly.

The Bottom Line

The cooling-off period exists to protect buyers. But it only protects those who understand how it works.

Know when the five days start. Understand the cost of walking away. Complete your due diligence quickly. And if you are buying at auction, recognise that no cooling-off safety net applies.

Property purchases on the Gold Coast move fast. The buyers who navigate them confidently are the ones who take the time to understand the process before they sign.

For guidance on buying or selling on the Gold Coast, Gold Coast Real Estate Agents is available to help. You can also find further information on cooling-off periods through the Queensland Government’s official property buying guide.