Selling a property is not easy as it comes with some legal obligations. One of them is the cooling-off period which allows the buyer to withdraw the contract within a short timeframe after signing it. By understanding how it works, sellers can manage potential risks and manage their expectations.
What is a Cooling-Off Period?
After the inspection, a buyer may want to terminate the contract with little financial loss. This predetermined number of days is called the cooling-off period. Most Australian jurisdictions allow this time to run two to five business days; the buyer may have to pay a small penalty (e.g., 0.25% of the purchase price in Queensland and NSW).
How It Affects Sellers
Until the timeframe has passed, for sellers the cooling-off period means a sale isn’t guaranteed. When a buyer pulls out of the deal, it can lead to delays and additional marketing efforts.
However, auction sales and waived cooling-off periods are exceptions.
Ways to Minimise Risk
While sellers cannot remove the cooling-off period, they can reduce the risk of contract cancellations by:
-Ensuring buyers are financially pre-approved
– Providing full property disclosures to avoid surprises
-Requesting a larger deposit to discourage cancellations
-Opting for auction sales, where cooling-off periods don’t apply
Final Thoughts
Knowing about cooling-off periods makes the sellers aware of the potential contract withdrawals. To ensure a smooth sales process work with a trusted real estate agency like Sapphire Real Estate.
Contact our team today to sell your property with confidence!
