Cooling-off period
How long is the cooling-off period when buying real estate?
In South Australia, your cooling-off period expires at the end of the second clear business day from the day on which the Form 1 was served to you.
The two clear business days do not include the day which the Form 1 was served, public holidays or weekends.
What is the purpose of the cooling-off period?
The aim of the cooling off period is to provide the purchaser with an opportunity to get any building inspections or other due diligences done on the property.
The cooling-off period provides the purchaser with a statutory right to terminate the contract during the cooling-off period by serving notice on the vendor or the vendor’s agent stating that he or she wishes to exercise their cooling-off rights.
It is always recommended that you engage a professional (i.e. a registered conveyancer or a solicitor) before serving a notice, to ensure that it is not only sent correct, but also sent to the correct people.
Do I get my cooling-off rights if I’m buying at auction?
No. When buying at an auction, there is no cooling off period. You must be very careful with inspecting the Form 1 prior to auction to ensure that there is nothing unexpected about the property.
Waiving cooling off rights
In some cases, the vendor or the vendor’s agent may request for a purchaser to waive their cooling off rights as a condition of the sale. If you have waived your cooling off rights, you will not be able to cool off or cancel the contract simply because of a change of mind.
To waive your cooling off rights (as a purchaser), you will need to engage a solicitor and obtain a certificate. This certificate is called the Form R3 – Waiver of cooling off rights.
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