What is the cooling-off period when buying a house in Queensland?

QLD Property Cooling-Off Period: 5-Day Rule Explained

In Queensland, most residential property contracts have a statutory 5-business day cooling-off period that allows buyers to withdraw from a contract after signing.

How the Cooling-Off Period Works

Duration: 5 business days (excludes weekends and public holidays)

Starts: On the day you or your solicitor receives a copy of the contract signed by both parties

Penalty: The seller may charge a termination fee of 0.25% of the purchase price

Example Calculation

If you purchase a property for $600,000:

Cooling-off penalty = $600,000 × 0.25% = $1,500

When Does It Apply?

The cooling-off period applies to:

Standard residential property sales
Contracts signed off-market (private treaty)
Most contracts where both parties negotiate and sign

When It Doesn’t Apply

⚠️ No cooling-off period for:

Properties purchased at auction
Contracts where the buyer has waived the cooling-off rights in writing
Commercial or industrial properties
Sales under court order

How to Terminate During Cooling-Off

Give written notice to the seller or their solicitor
State you are exercising your cooling-off rights under s366 of the Property Law Act 1974 (Qld)
Be prepared to pay the 0.25% penalty
Act within the 5-business day window

Getting Legal Advice First

Don’t rely on the cooling-off period as your safety net. Instead:

✅ Have a solicitor review the contract before you sign ✅ Include building and pest inspection clauses ✅ Add finance approval conditions ✅ Ensure the contract protects your interests

The cooling-off period is expensive insurance—it’s always better to get the contract right from the start.

Important Warning

If you terminate outside the cooling-off period without legal grounds, you may:

Forfeit your full deposit (typically 10%)
Be sued for damages by the seller
Be liable for the seller’s legal costs

Need contract advice? Our property lawyers review contracts daily and can identify risks before you sign. Contact Bell & Senior for a same-day contract review.