In short. New South Wales gives buyers 5 business days after exchange, ending at 5pm on the fifth business day1, and withdrawing costs 0.25% of the purchase price2. A Victorian private sale gives 3 clear business days from the day you sign5, and withdrawing costs $100 or 0.2% of the price, whichever is greater6. Queensland gives 5 business days9.
How long is the cooling-off period?
Short enough to disappear over a weekend. Both NSW and Victoria count business days, so a Thursday signature in Victoria leaves you until the following Tuesday, and a public holiday stretches it further. In NSW, a property bought off the plan comes with a longer period of 10 business days4.
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Day 0
You sign the contract in Victoria, or contracts are exchanged in NSW. The period starts.
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Day 3: Victoria
Private sales: 3 clear business days5. Cooling off costs $100 or 0.2% of the price, whichever is greater6, which is $1,500 on a $750,000 home.
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Day 5, 5pm: NSW
Residential property: 5 business days1. Withdrawing costs 0.25% of the purchase price2, which is $1,875 on a $750,000 home.
Bought at auction? NSW has no cooling-off period at auction3, and Victoria has none at a public auction or within three clear business days either side of one7.
What does it cost to pull out?
Each state lets the vendor keep a set amount, worked out differently. NSW takes a straight percentage of the price. Victoria takes the greater of a flat $100 or a smaller percentage, so on any price above $50,000 the percentage applies. Queensland says cancelling costs a fee set as a percentage of the price, and tells buyers to get legal advice about their options9.
Chart data
| Item | New South Wales | Victoria |
|---|---|---|
| $600,000 | $1,500 | $1,200 |
| $750,000 | $1,875 | $1,500 |
| $1,000,000 | $2,500 | $2,000 |
Both amounts are small next to the deposit and the duty. Treat them as the price of an option, not a penalty to avoid at all costs: in NSW, $1,875 to walk away from a $750,000 house with a structural problem can be money well spent.
Why is there no cooling-off period at auction?
Because the bidding is the negotiation, and the contract is meant to be final when it is signed. In NSW there is no cooling-off period when you buy at auction, or when you exchange on auction day after the property is passed in3. Victoria removes it for a sale at a public auction, and for a sale within three clear business days before or after one7. Queensland has none at auction either9.
That catches buyers out. If you are bidding on Saturday, your building inspection, strata records, contract review and finance approval need to be done beforehand. The Queensland Government, for one, says a buyer whose bid is accepted must sign an unconditional contract immediately9.
What happens to the deposit?
The amount and timing of the deposit are set by your contract, so read that clause with your conveyancer before you sign. In Victoria, a seller's agent must hold the deposit in a trust account until settlement, or pass it to the seller's legal practitioner or conveyancer to hold in trust8. If you cool off, you get back what you paid less the amount the vendor may keep6.
What should you do with the days?
- Send the contract to your conveyancer or solicitor the day you sign.
- Book the building and pest inspection straight away.
- Confirm with your lender that the valuation supports the price you agreed.
- Read the strata or owners corporation records if it is a unit, looking for special levies and disputes.
- Decide by the morning of the last day, and give written notice well before the deadline if you are pulling out.
What about the other states?
South Australia, Western Australia, Tasmania, the ACT and the Northern Territory each set their own rules, and this guide does not yet cover them from their regulators' pages. If you are buying there, ask your conveyancer for the cooling-off position in writing before you sign, and check your state's consumer affairs or fair trading website. The state duty comparison covers what the same purchase costs in each jurisdiction.