Law Plus A cooling-off period gives a buyer a short window after signing a property contract to withdraw, usually for a financial penalty rather than losing the whole deposit. It exists to protect buyers who sign quickly — sometimes at an open home — before they've had a chance to arrange finance or a building inspection. But cooling-off is not universal, and the rules differ enough between states that assuming your state's rule applies elsewhere can be an expensive mistake.
Victoria
In Victoria, residential buyers generally have a three business day cooling-off period after signing, starting the day after the contract is signed. If a buyer withdraws during this period, the seller can retain a small percentage of the purchase price as a penalty, with the balance of any deposit refunded. Cooling-off does not apply in a number of situations, including when the property is bought at or within three days of a genuine auction, when the property is used mainly for industrial or commercial purposes, or when the buyer already had an independent lawyer or conveyancer advising them on the contract before signing.
New South Wales
In New South Wales, residential buyers generally have a five business day cooling-off period, also starting the day after exchange. Withdrawing during this period costs the buyer a small percentage of the purchase price, deducted from the deposit. A common and important exception: if a buyer's solicitor provides the seller's solicitor with a signed certificate under section 66W of the Conveyancing Act before exchange, the cooling-off period is waived entirely. This is standard practice at auction and is also often used to make an offer more attractive in a competitive private sale — but it means the buyer loses the safety net, so the contract should be reviewed beforehand, not after.
Queensland
In Queensland, residential buyers generally have a five business day cooling-off period. If a buyer withdraws, the seller can retain a small percentage of the purchase price, with the rest of the deposit refunded. As in the other states, cooling-off does not apply to properties bought at auction, and there are further exemptions for certain types of property and transactions.
What these numbers have in common — and why we haven't been more specific
The percentage penalties and exact day counts above are set by legislation and are reviewed from time to time, so we've deliberately kept this general rather than quoting figures that could go out of date. What's consistent across all three states is the underlying idea: cooling-off is a limited, paid safety net — not a substitute for reviewing the contract properly before you sign.
When there's no cooling-off period at all
The most important exception to understand, in every state, is auctions. If you buy at auction — or, in some states, within a few business days of an auction that was passed in — there is no cooling-off period. The contract is binding the moment the hammer falls or the contract is signed. This is exactly why serious auction bidders get the contract reviewed by a lawyer well before auction day, not after.
The safer approach: review before you sign
Cooling-off exists because contracts sometimes get signed before a buyer has had proper advice. The better sequence — and the one we recommend to every client — is to have the contract reviewed before you sign or bid, so cooling-off is a backup you don't end up needing. Our property and conveyancing lawyers regularly turn around pre-exchange contract reviews quickly, including ahead of an auction. For a broader look at what happens after exchange, see our guide to the conveyancing process, step by step.