What are the cooling-off periods for property sales in Queensland?
If you’ve just signed a contract to sell your property, or buy one, you might be wondering: can either party back out, and under what conditions? That’s where Queensland’s cooling-off period comes in.
Whether you’re a seller or a buyer on the Gold Coast, understanding how this legal grace period works can help you avoid nasty surprises, reduce stress, and stay in control of your sale.
What Is a Cooling-Off Period in a Contract of Sale for a Property?
The cooling-off period is a short window of time that gives residential property buyers the right to cancel a signed contract, no questions asked.
In Queensland, it only applies to buyers (not sellers) and only for standard residential sales (not auctions or some off-market deals).
How Long Is the Cooling-Off Period in Queensland?
The cooling-off period in Queensland is:
5 business days
…starting on the day the buyer receives the signed contract (or the next business day if received after hours).
Example:
- Buyer receives the contract on Monday
- Cooling-off period ends at 5:00pm Friday (assuming no public holidays)
The countdown starts from the date the buyer is given a copy signed by all parties, not the date the buyer signs.
Can the Buyer Cancel the Contract During This Time?
Yes. The buyer can terminate the contract for any reason during the cooling-off period—no explanation required.
They simply need to provide written notice (usually via email or fax) before 5:00 pm on the last business day of the period.
Is There a Penalty for Cancelling?
Yes, but it’s minimal.
If a buyer cancels during the cooling-off period, the seller can legally deduct up to 0.25% of the purchase price from the deposit.
Example:
- Sale price: $900,000
- Cancellation penalty: $2,250
- Remainder of deposit is refunded to the buyer
The buyer forfeits that amount as compensation for the seller’s time off-market.
What Types of Sales Don’t Have a Cooling-Off Period?
Cooling-off periods do not apply in these cases:
Property purchased at auction
- Sales concluded within 2 business days of a failed auction
- Some commercial or rural property sales
- Where the buyer waives their cooling-off rights in writing
Can a Buyer Waive the Cooling-Off Period?
Yes. The buyer can choose to waive their cooling-off period, typically to strengthen their offer in a competitive situation.
To do so, they must sign a lawyer-issued certificate confirming that:
- They’ve received legal advice
- They understand the implications
As a seller, you can’t force a buyer to waive this right, but you can negotiate it as part of the offer.
How Does This Affect You as a Seller on the Gold Coast?
You must:
Disclose the buyer’s right to a cooling-off period in the contract
Understand the buyer can terminate within 5 days (and possibly walk away)
Return the buyer’s deposit (minus 0.25%) if they cancel within this timeframe
Keep the property “warm” with backup interest until the contract goes unconditional
Seller Tip: Plan for Cooling-Off in Your Sale Timeline
- Don’t pop the champagne too early, contracts are not locked in until the cooling-off period ends (and special conditions like finance/building are satisfied).
- Avoid accepting back-up offers during the cooling-off unless your agent clearly communicates each party’s position.
- Stay in close contact with your solicitor to manage deadlines and communications smoothly.
On the Gold Coast, Here’s How It Usually Plays Out
Most residential buyers:
- Use the cooling-off period to secure finance or clarify due diligence
- Rarely cancel unless they find something unexpected
- May negotiate better terms in exchange for waiving it (like a quicker settlement)
As a seller, working with an agent who understands these details ensures you stay in control, even during this legally flexible phase.
Selling a home on the Gold Coast involves more than paperwork and open homes. The legal side—from cooling-off to conditions—can impact your timeline and peace of mind.
Let’s walk through it together.
FAQs: Cooling-Off Period in Queensland Property Sales
1. Can I cancel the contract as a seller during the cooling-off?
No. The cooling-off period only gives the buyer the right to cancel.
2. Do all buyers get the cooling-off period automatically?
Yes, unless they choose to waive it in writing with legal advice.
3. What happens if a buyer cancels late on the final day?
If it’s before 5:00pm on a business day and notice is valid, cancellation stands, even at the last minute.
4. Is the 0.25% cancellation penalty negotiable?
No. It’s fixed under Queensland law and applies automatically if the buyer cancels.
5. Can the cooling-off period be extended?
Only if both parties agree in writing, but it’s uncommon.
In Queensland real estate, knowledge is power, and timing is everything.
Let’s get your property sold with confidence and legal clarity.
More Smart Seller Questions Answered
Overpricing Your Property on the Gold Coast? Here’s What It Could Cost You
It’s tempting to list high and “test the market,” but on the Gold Coast, overpricing your property can do more harm than good. Today’s buyers are well-researched and quick to spot when a home is priced beyond its value.
An inflated price tag can lead to fewer inspections, minimal offers, and a listing that lingers on the market. Worse, the longer your property sits unsold, the more buyers begin to wonder what’s wrong with it. Eventually, you may be forced to reduce the price, sometimes below what you could have achieved with the right strategy from day one.
The goal isn’t just to sell—it’s to sell smart. With the right pricing approach, you can attract serious interest, spark competition, and secure a strong result without the stress of backtracking. Want to know how to price it right from the start? Let’s talk.
Author – Craig Douglas
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
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This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
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