In Queensland, a statutory cool-off period is available to buyers purchasing residential property. This gives a buyer up to 5 business days, from receiving a fully executed copy of the contract, to terminate the contract for any reason. If the buyer elects to terminate the contract by cooling off, then the seller may charge the buyer a penalty of 0.25%. See the Queensland Government’s website for more details on cooling off .
A buyer can also choose to waive or shorten their right to the cool-off period. Buyers who purchase residential property at auction, automatically waive their right to cool-off.
Pros of waiving/shortening the cool off period:
- If there is competition for a property, this can show to a seller you are a serious buyer.
- If you are after a speedy transaction, waiving the cool-off and having no special conditions allows you to enter into an unconditional contract.
- If needing to rescind a contract & enter into a new contract, waiving the cool-off period on the new contract can be an incentive for the seller to agree to enter into the new contract.
Cons of waiving/shortening the cool off period:
- Should there be an issue with the property or the contract which you discover after signing, you may no longer have a right to terminate the contract.
If you are a buyer considering waiving cool-off & aren’t sure, contact Sempre Vero Lawyers to discuss your circumstances.