All Buyers of Residential real estate in Queensland (other than at auction) receive the benefit of a compulsory five (5) business day cooling-off period. This right is in addition to any special conditions contained in the Contract of sale.
During the five (5) business day cooling-off period the Buyer has the legal right to cancel the contract - the Buyer does not need a reason to cancel - the mere fact that the Buyer has changed his mind to purchase is sufficient reason.
The cooling-off period does not commence the day the Buyer signs the Contract of Sale. The cooling-off period commences the day Q Property Lawyers as the Buyer's representative receives back the signed contract from the Developer / Seller.
If the Buyer chooses to cancel the Contract of Sale solely under the cooling-off provision, the Developer / Seller is entitled to charge a cancellation or cooling-off fee.
The cancellation or cooling-off fee is equivalent to one quarter of one percent (0.25%) of the purchase price. The Developer / Seller is authorized to deduct the fee from the Deposit Monies paid by the Buyer.
For example, the cancellation or cooling-off fee for a property with a purchase price of $400,000.00 would be $1,000.00.
It should be noted that if the Contract of sale is cancelled due to the non-satisfaction of any special condition (for example, non-approval of finance), the Developer/ Seller must fully refund to the Buyer all deposit monies paid.