Buying a property is one of the biggest financial decisions most people will ever make. In South Australia, the cooling off period gives buyers a short window of time to reconsider their decision after signing a contract. While this period is brief, understanding how it works, and when it doesn’t apply, is essential for anyone entering the property market.
What is the cooling off period?
The cooling off period is a legal safeguard built into South Australian property law. It allows a purchaser to withdraw from a signed contract of sale within a specific timeframe, without needing to provide a reason.
In South Australia, the cooling off period is two clear business days after the buyer receives the Form 1 Vendor’s Statement. Importantly, the day the Form 1 is served, weekends, and public holidays are not counted in this period.
When does the cooling off period apply?
The cooling off period generally applies when purchasing residential property by private treaty. This includes:
- Houses
- Apartments and units
- Vacant land for residential use
It gives buyers the chance to carefully review the Form 1, seek legal or financial advice, or simply rethink whether the purchase is right for them.
When does it not apply?
There are important exceptions where no cooling off rights exist. These include:
- At auction — if the property is bought on the day of auction or within two business days after.
- Company titles or interests in managed investment schemes.
- Where a buyer has previously entered into a contract for the same property.
In these cases, once the contract is signed, the commitment is binding without the benefit of a cooling off period.
How to exercise your cooling off rights
If a buyer decides not to proceed, they must give written notice to the vendor or the vendor’s agent within the two-day period. This is usually done through a standard form prepared by their solicitor or conveyancer.
When the notice is validly served, the contract is cancelled and the deposit is refunded in full, minus a small statutory fee of up to $100.
Why the cooling off period matters
For buyers, this period provides a crucial safety net. It ensures that decisions aren’t rushed, particularly when emotions can run high during negotiations. It also gives time to:
- Confirm finance approval
- Seek independent legal advice
- Arrange building and pest inspections
- Double-check any encumbrances or easements on the property
In short, the cooling off period gives buyers a chance to pause, reflect, and ensure they are making a confident and informed choice.
Practical tips for buyers
- Act quickly: Two business days can pass quickly, so review documents as soon as they are provided.
- Engage professionals early: A solicitor or conveyancer can explain your rights and help prepare a cooling off notice if needed.
- Don’t rely on cooling off alone: Use it as a safeguard, but do your due diligence before signing.
The cooling off period in South Australia may be short, but it plays a vital role in protecting buyers from making decisions they may regret. Knowing when it applies, when it doesn’t, and how to exercise it is key to navigating the property purchase process confidently.
If you’re thinking about buying or selling property and want expert guidance, contact our team today. We’re here to help you make informed decisions in the South Australian real estate market.
This article is for general information purposes only and does not constitute legal or financial advice. Readers should seek professional advice from a qualified solicitor, conveyancer, or financial advisor regarding their specific circumstances before making property-related decisions.