The busy property market is overwhelming as it is without having to think about confusing concepts like cooling-off periods. However, you must understand such terms, especially if they can affect you.
While the guidelines change from state to state, our conveyancing lawyers provide a quick guide to cooling-off periods:
What Exactly Is a Cooling-Off Period?
In short, a cooling-off period is a certain timeframe when a person can change their mind about a purchase or contract. This period typically lasts for a few days, and during this time, the person is allowed to cancel the purchase or contract without any penalties.
There are many different situations in which a cooling-off period may be applicable. For example, when buying a car, a person usually has a few days to change their mind and return the vehicle for a full refund. Similarly, when signing a contract for a new rental property, a person usually has a few days to cancel the contract without incurring any fees.
How Can Cooling-Off Periods Affect Homebuyers and Home Sellers in Queensland?
The cooling-off period in Queensland begins when the contract is signed and ends at 5 pm on the fifth business day after the contract is signed. This means that if you sign an agreement on a Monday, the cooling-off period will end on the following Friday. If you sign a contract on a Saturday or Sunday, the cooling-off period will finish the next Wednesday.
During the cooling-off period, the buyer has the right to cancel the contract and get a full refund of their deposit, no matter the reason. On the other hand, the seller does not have this same right and is bound to the contract once it is signed.
If the buyer decides to cancel the contract during the cooling-off period, they must notify the seller in writing. Once the seller has received this notification, they will then have three business days to refund the deposit in full.
It’s crucial to note that there are a few exceptions to the cooling-off period in Queensland. These exceptions include:
- If the property is being sold at auction.
- If the property is being sold as part of a deceased estate.
- If the buyer is purchasing the property through a company or trust.
If any of these exceptions apply, the cooling-off period does not apply, and the buyer will not be able to cancel the contract.
Overall, the cooling-off period is good for both buyers and sellers. It gives buyers a chance to change their minds without any financial repercussions, and it protects sellers from buyers who may try to back out of the sale at the last minute.
Conclusion
In conclusion, cooling-off periods are designed to protect consumers from impulse decisions they may regret later. Cooling-off periods allow people to make more informed and deliberate decisions by giving people a chance to change their minds.
It’s essential to be aware of cooling-off periods when making any type of purchase or signing any kind of contract. This way, you’ll know if you have the right to change your mind and cancel the purchase or contract without incurring any penalties. If you need more information on this topic, you should seek the help of one of the best conveyancing lawyers in your area.
Bickell & Mackenzie offers the services of seasoned conveyancing lawyers in Redland Bay. Get in touch with us today if you have any questions regarding the purchase or selling of real estate property!
