Cooling off period in Queensland: 5 business days and how to use them

Signed a contract and having second thoughts? Call your solicitor now, rather than waiting until you've decided exactly what to do.

Confirm whether cooling-off applies to your purchase, then get the exact deadline in writing.

The period generally starts on the day you receive the contract signed by both parties. If that happens on a non-business day, it starts on the next business day.

Receipt by your authorised representative can count too. It usually ends at 5 pm on the fifth business day.

A specific rule applies if you sign after the seller and communicate acceptance. Don't count from memory.

Ask your solicitor for the exact date and time in writing, and keep the email or delivery record showing when the signed contract arrived.

Have your solicitor prepare and serve the notice. You're responsible for making sure it arrives in time. Ask them to check:

• The notice is signed and in writing.
• It's addressed to the correct seller or authorised recipient.
• The delivery method is permitted.
• It's received before the deadline.
• Evidence of delivery and receipt is kept.

For cooling-off, the seller's agent must be authorised to receive the notice for that matter. You can use hand delivery, email or fax. Your solicitor should verify the recipient, address and delivery rules, and ensure the signed notice arrives in time.

A phone call alone won't do. Your solicitor can check the contract's notice provisions, the law and any other termination right that may apply.

An auction sale doesn't have the usual protection. A registered bidder buying after an unsuccessful auction can also be excluded if the contract is made by 5 pm on the second clear business day after the property was passed in. Passed in means it wasn't sold at auction.

Calling the later deal a private sale doesn't change those rules. Tell your solicitor if you were a registered bidder and when the contract was entered into.

A sale contract formed by exercising an option can also be excluded where the parties are the same. That's different from saying every contract granting an option is excluded.

Certain buyers and purchases of 3 or more lots have exclusions as well. Ask your solicitor which apply to your purchase.

Examples include a publicly listed corporation or its subsidiary, the State or a statutory body. The protection concerns residential property; do not assume a commercial or primary-production purchase qualifies.

The cooling-off deadline can arrive while the bank is still assessing your loan or the property. A finance condition has its own wording, deadline and notice requirements.

A loan decline doesn't automatically end the contract, and you shouldn't assume one protection replaces the other.

Cooling-off can cover a change of mind. Finance termination may avoid the cooling-off deduction, but only where your contract genuinely permits it. Don't let cooling-off expire while assuming finance will provide an exit.

1. Check your signed contract with your solicitor or conveyancing lawyer. Under the standard form, the finance amount, financier and Finance Date must all be completed. Special conditions can change your rights. Confirm both deadlines and any business-day adjustments.
2. Apply promptly and pursue approval honestly. Supply requested information, follow up and keep records. Give your solicitor the lender's written position and any approval conditions. A generic decline, an unfinished application or an early rejection does not automatically give you a right to withdraw.
3. Have your solicitor decide whether the contractual grounds are met and serve the correct written notice. Under the standard form, this goes to the seller or their solicitor using the permitted address and method, such as hand delivery or email. Postal notice has deemed-delivery rules. Email sent at or after 5 pm can count on the next business day, so act early. A finance notice must state termination for failure to obtain the required approval, or satisfaction or waiver as appropriate.
4. If approval is pending, ask your solicitor to seek the seller's agreement to an extension and record it in writing before the current deadline. The seller can refuse. A request, a bank delay or a verbal assurance does not extend the date. Do not confirm satisfaction or waive finance until you understand the risk; a later loan withdrawal does not simply revive that protection.

Under the unamended standard form, no buyer notice by 5 pm on the Finance Date gives the seller a right to terminate. The buyer retains the right to give an applicable satisfaction, termination or waiver notice until the seller exercises that right. Missing the date does not automatically end the contract or make it unconditional. Get urgent legal advice; special conditions may change this.

An invalid withdrawal can put your deposit at risk and expose you to a claim for further losses. Do not manufacture finance grounds or stop pursuing an application just because you have changed your mind.

Get pre-approval before making offers where possible. The bank may still need a valuation and property-specific checks afterwards. Ask your solicitor about appropriate conditions before signing, especially if you're arranging your first home buyer loan.

A 5% deposit scheme application doesn't change your cooling-off or finance deadlines. Keep your broker and solicitor informed of both timetables.

The seller may deduct up to 0.25% of the purchase price, not 0.25% of the deposit. On a hypothetical $800k purchase, that's a maximum of $2,000. Whether a particular seller is entitled to a deduction in your circumstances needs a legal check.

For a side-by-side example, assume an $800,000 price and a $40,000 deposit already paid. If cooling-off is available and validly used, a full 0.25% deduction is $2,000, leaving $38,000 to refund. If you validly terminate under the standard finance condition without buyer default, the $40,000 deposit is returned without that cooling-off penalty. This assumes no special condition changes the result and no dispute about the termination.

You may also have paid for inspections or legal work. Ask your solicitor how the deposit refund and any penalty will be handled.

Those inspection, legal and any non-refundable loan-application costs are separate from a termination penalty. They may remain payable under either route, even if the full deposit comes back. Ask each provider what is refundable; deposit return does not mean the purchase has cost nothing.

The balance must be refunded within 14 days after cooling-off termination, after any permitted deduction.

For a straightforward example, assume you receive the fully signed contract on Monday, with no public holidays or other complications.

Monday counts. Receiving the contract late that day doesn't automatically buy you another day.

This example isn't a deadline calculation for your purchase. Ask your solicitor to confirm the exact date and time in writing.

Send your broker the signed contract and your solicitor's confirmed deadlines as soon as possible. Ask which loan conditions remain, whether the valuation is complete and what evidence the lender still needs. A general update saying the application is progressing isn't enough to make a contract decision.

If finance is uncertain, tell your solicitor while there is still time to consider your options. We can explain the lending position, but cannot serve legal notices or decide whether you should terminate.

Call Hunter Galloway on 1300 088 065 for the finance check. Before your next purchase, request a free assessment. If a cooling-off deadline is close, contact your solicitor first rather than waiting for an online enquiry response.

Related guides: pre-approval · first home buyer loan

General Queensland information. Your signed contract and circumstances control. Hunter Galloway can help with finance but does not provide legal representation or serve termination notices.