Cooling Off Period

The cooling off period exists to protect buyers by giving them time to finalise finance, complete inspections or simply reconsider their decision. It applies to most private treaty sales in Australia but usually does not apply to auctions, where the sale becomes unconditional immediately. Each state has different rules about how long the cooling off period lasts and what financial penalty, if any, applies if the buyer withdraws. For sellers, the cooling off period can feel uncertain because the deal is not fully secure until it ends. This is why clear communication between the agent, buyer and conveyancers is essential. A strong agent helps maintain buyer confidence throughout this period by answering questions promptly and ensuring all outstanding issues are addressed. When handled professionally, the cooling off phase becomes a smooth, low risk stage rather than a stressful one.

Practical Example

A buyer signs a contract for your home on a Saturday afternoon and enters the standard cooling off period. By Monday, they realise their bank needs additional documents before providing full approval, which makes them nervous. Your agent steps in to coordinate communication between the buyer, their broker and the conveyancer to keep everything moving. They explain the market conditions and reinforce the value of your property which helps settle the buyer’s nerves. By midweek, the buyer receives conditional approval and regains confidence in proceeding. When the cooling off period ends, the contract becomes unconditional and your sale is formally secured.