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What is the cooling off period?

8 June 2021

Article by Jacqui

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"The cooling-off period expires at the end of the second clear business day after the Form 1 has been served on the purchaser."

The cooling off period is used by the purchaser to conduct further building or pest inspections over a property or reconsider the purchase. The cooling-off period expires at the end of the second clear business day after the Form 1 has been served on the purchaser.

There is no cooling off period when: you buy at auction or your bid becomes successful later that day, if you are a company purchaser or if you are buying a business plus the property.

Once the cooling off period has expired and provided there are no other conditions in the contract, the purchaser is bound to the contract and must pay a deposit. A settlement date will have been negotiated and the purchaser is obliged to follow through with the purchase.

If the purchaser decides to withdraw from the sale during the cooling off period, they must issue a cooling off notice in writing to the vendor or the vendor’s agent before the period expires.

We recommend engaging a Conveyancer prior to or soon after being served a Form 1. We can assist by reviewing the Form 1 for you and providing advice during that period.

Contact us today for more information regarding your Form 1 review or to discuss your cooling off rights.

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Articles by Jacqui