Cooling-Off Periods in Queensland Property Contracts

Introduction

Buying property is one of the biggest financial decisions most Queenslanders make, and the law provides buyers a short window to reconsider that decision. Known as the cooling-off period, this safety net allows buyers to withdraw from a residential property contract within a set timeframe.

Understanding how cooling-off periods work, when they apply, and how the new 2025 seller disclosure regime interacts with them is essential for both buyers and sellers. With SearchX, conveyancers and agents can ensure all disclosures, contract terms, and compliance checks are in order from the start, avoiding disputes or invalid terminations later.

What Is a Cooling-Off Period?

A cooling-off period is a legislated timeframe allowing a buyer to terminate a residential property contract after signing, without needing to provide a reason.

It exists to give buyers time to conduct final checks, obtain finance approval, or simply change their mind, though a small termination fee may apply.

This right is governed under the Property Occupations Act 2014 (QLD).

How Long Is the Cooling-Off Period in Queensland?

In Queensland, the cooling-off period is five business days, beginning the day the buyer (or their solicitor) receives the signed contract.

Key points:

• Weekends and public holidays are excluded.

• If the fifth day falls on a weekend or public holiday, it extends to the next business day.

• Termination must be given in writing within the period.

SearchX helps ensure all contract dates, disclosure delivery times, and document timestamps are clearly recorded, removing ambiguity around cooling-off deadlines.

When Does the Cooling-Off Period Apply?

Cooling-off applies to most residential property sales, including:

• Existing houses and units

• Townhouses and apartments

• Vacant residential land

However, it only applies to buyers, not sellers.

Situations Where the Cooling-Off Period Does NOT Apply

The cooling-off period does NOT apply to:

• Properties purchased at auction

• Sales to corporations (company buyers)

• Sales made within two business days of a failed auction to a registered bidder

• Commercial properties or industrial land

• Contracts where the buyer waives the right to cooling-off in writing

Always check your contract carefully, or verify terms using SearchX’s contract document collection and review tools.

How to Terminate a Contract During the Cooling-Off Period

To terminate:

1. Provide written notice to the seller or their agent before the cooling-off deadline.

2. Use the correct contract clause or a clear written letter/email.

3. Keep proof of delivery (email timestamp or courier receipt).

With SearchX, agents and conveyancers can track all key dates, disclosure deliveries, and termination deadlines through one integrated timeline, preventing timing disputes.

What Fees Are Payable If You Cancel?

If a buyer terminates during the cooling-off period, the seller can retain up to 0.25% of the purchase price as a penalty.

Example: For a $700,000 property, the seller may retain $1,750 from the deposit.

Can the Cooling-Off Period Be Waived?

Yes. A buyer can waive their cooling-off rights, but only by providing a lawyer’s certificate confirming they understand the legal effect of doing so.

Waivers are common for competitive offers, but should never be rushed. Using SearchX, buyers’ solicitors can confirm that all pre-contract disclosure requirements, including the Seller Disclosure Statement (Form 2),  are satisfied before advising on waiver risks.

Can the Cooling-Off Period Be Shortened or Extended?

Both parties can agree in writing to shorten or extend the cooling-off period. Any variation should be made through the contract or an addendum signed by both buyer and seller.

Accurate date tracking in SearchX helps conveyancers and agents ensure these amendments are recorded correctly and supported by documentation.

Implications for Sellers

For sellers, a terminated contract can cause delays, remarketing costs, and uncertainty. However, compliance with Form 2 (Seller Disclosure Statement) is crucial, providing full, accurate disclosure upfront reduces the chance of buyers exercising their cooling-off rights due to missed information.

Using SearchX, sellers can streamline disclosure by collating all required property searches and documentation before contracts are issued, improving transparency and buyer confidence.

Impact of the New 2025 Seller Disclosure Regime

From 1 August 2025, the Property Law Act 2023 introduces Queensland’s new mandatory seller disclosure framework, requiring sellers to provide the Seller Disclosure Statement (Form 2) before buyers sign a contract.

This means:

• Buyers will receive more accurate information earlier.

• Cooling-off rights will be exercised more deliberately, not due to missing or late disclosures.

SearchX automates this process by ensuring all relevant searches, records, and disclosure documents are complete and timestamped before contract signing, helping both parties comply with new requirements.

What Happens If Buyers Try to Terminate Outside the Cooling-Off Period?

If a buyer terminates after the cooling-off period without a valid contractual reason (such as finance or building inspection clauses), the seller may:

• Keep the deposit (partially or in full)

• Pursue legal remedies for breach of contract

SearchX’s audit trail helps agents and solicitors verify exact delivery dates and disclosure compliance, protecting sellers from wrongful terminations.

Conclusion

Cooling-off periods are a vital safeguard for Queensland buyers, but they must be understood in the context of strict timelines and disclosure laws.

With the upcoming 2025 Seller Disclosure changes, accuracy, timing, and compliance will be more important than ever.

By using SearchX, agents, buyers, and conveyancers can manage all disclosure documents, track key deadlines, and maintain complete transparency throughout the contract process, ensuring every transaction runs smoothly and legally.

Frequently Asked Questions

Can I ask for an extension to the cooling-off period?

Yes, but both parties must agree in writing.

Does cooling-off apply to off-the-plan contracts?

Yes, unless specifically excluded under the contract.

How do I waive the cooling-off period?

By providing a lawyer’s certificate confirming your understanding and intention.

Can sellers force a waiver?

No. It must be a voluntary decision by the buyer.

Do I need a reason to terminate?

No, within the cooling-off period, termination can occur without explanation.

Does cooling-off apply to vacant land?

Yes, if it’s zoned for residential use.