Cooling-off Period in QLD REIQ Contracts: Your 5-Day Exit Window
Plain English Definition
Under the Property Occupations Act 2014 (QLD), residential property buyers have a 5-business-day cooling-off period after the contract is formed. During this window, you can terminate the contract for any reason — no explanation required. However, you will forfeit 0.25% of the purchase price as a penalty.
Example: On a $700,000 property, exercising the cooling-off period costs you $1,750 — compared to potentially losing a $70,000 deposit if you waive it and then can't settle.
The Danger Zone: Buyer's Risk
The cooling-off period is more limited than most buyers realise:
- Auction purchases are excluded — Properties bought at auction or on the same day as an auction have no cooling-off period. This is one of the key risks of auction bidding.
- Signed waiver — Buyers can legally sign away their cooling-off rights before or at exchange. Sellers and agents often push buyers to waive this right in competitive markets.
- Timing precision — The 5-business-day period begins the day after the buyer receives the signed contract. Public holidays and weekends do not count, but the exact start date must be calculated carefully.
- Notice requirements — Termination must be in writing and delivered to the seller's agent or solicitor before 5:00 PM on day 5. A late fax or email delay can invalidate the termination.
- Form 32c — The correct legal form must accompany the termination notice.
Real-Life QLD Scenario
Mei signed a contract on a Gold Coast apartment on a Friday afternoon. She was told by the agent she had "5 days to think about it." Over the weekend, her accountant raised concerns about body corporate fees. By the time she contacted her solicitor on Monday, they calculated that the cooling-off period had actually already started on Friday — meaning she only had until Thursday at 5pm. She mistakenly thought she had until Monday. She missed the deadline by half a day. The 0.25% penalty became the least of her worries — she was bound to a contract she no longer wanted.