What is a cooling off period and how does it work?

Purchasers are entitled to a 5 business day cooling-off period, which means that they can change their mind about purchasing a property prior to the expiration of this 5 days.  The cooling-off period begins on the day that the purchaser is bound by the contract (ie, the ‘exchange’ date).

The cooling-off period ends on the fifth business day after the cooling-off period started. If a purchaser is bound by the contract on a day other than a business day, the cooling-off period commences on the first business day after the purchaser is bound by a contract. A business day refers to a day other than a Saturday or a Sunday or a public holiday.

The cooling-off period may be waived or shortened, but only by obtaining a conveyancers or a lawyer’s certificate. If the cooling off period is waived, the contract is binding from that point, subject to the terms of the contract. At end time before the end of the 5 day cooling-off period, the contract can be rescinded by the purchaser giving a signed and dated notice to the seller or seller’s agent, indicating that the purchaser wishes to rescind the contract. If a purchaser changes their mind and rescinds the contract during the cooling-off period, the Vendor must refund the deposit less 0.25% of the purchase price.