Cooling Off

In certain circumstances, the Purchaser of real estate is permitted to cancel the Contract and walk away from it all together, within 3 days of having signed it.

Section 31 Sale of Land Act provides a statutory cooling off period which allows a Purchaser to terminate a Contract within 3 days of signing it. A Purchaser may cool off where:

•	The land is other than land used for industrial or commercial purposes;
•	The sale was not by public auction;
•	The Contract was not signed within 3 clear business days before or after a publicly advertised auction;
•	The parties have not previously had a Contract for the sale of the same land;
•	The Purchaser is neither and estate agent nor a body corporate;
•	The Purchaser did not receive independent advice from a lawyer before signing the Contract;
•	The Purchaser has delivered written notice of the "cooling off" to the Vendor or the Vendor's agent at the address stated in the Contract within the 3 clear business days.
•	The Purchaser is entitled to a refund, less $100 or 0.2% of the purchase price, whichever is the greater.

NOTE: See a full explanation about "cooling off" at LawyersConveyancing.com.au

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