If a buyer terminates a Contract of Sale at any time during the stipulated 5 – business day period, they will have to pay the seller 0.25% of the property price on the Contract. There is no additional GST payable on this amount.

If the buyer has elected to waive the cooling off period provision they will not incur any cost and consequently cannot terminate a Contract.

• The cooling off period starts on the day the buyer and seller are bound by the contract of sale. This is as soon as the buyer or their agent, lawyer or personal representative receives a copy of the signed contract. (if that is a business day).
• If that day is not a business day (ie Sunday) then the cooling off period will commence on the next business day. Business days are all days except Saturdays, Sundays and public holidays.
• The cooling off period ends at 5pm on the fifth business day.
• You can terminate the contract at any time before the end of the 5 day cooling off period by giving a signed and dated notice to the seller or the seller’s agent indicating you wish to terminate the contract.
• The seller must refund your deposit within 14 days of termination of the contract but may deduct a termination penalty.
• The five day cooling off period does not apply to residential property sold by auction.
• After the cooling off period ends you are legally bound to buy the property, subject to the terms of the contract.

For more information about Cooling Off periods visit www.fairtrading.qld.gov.au

Last updated 2/3/04

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