Cooling-Off Period in Australian Capital Territory (ACT)
ACT cooling-off period is 5 business days with a 0.25% penalty. Learn about the unique building inspection requirements and how to exercise your rights in Canberra.
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Definition
Australian Capital Territory Cooling-Off Period
Australian Capital Territory cooling-off is 5 business days under the Civil Law (Sale of Residential Property) Act 2003 (ACT).
Quick Facts
| Duration | 5 business days |
| Penalty | 0.25% of purchase price |
| Legislation | Civil Law (Sale of Residential Property) Act 2003 (ACT) |
| Starts | When the buyer receives the signed contract |
| How to Exercise | Written rescission notice served before the cooling-off period expires |
| How to Waive | Solicitor's certificate and signed waiver |
Exceptions
The cooling-off period does not apply in the following situations in Australian Capital Territory:
- Properties sold at public auction
- Where the buyer's solicitor has issued a certificate and the buyer has signed a waiver
Does Cooling-Off Apply at Auction?
No. Properties purchased at public auction in Australian Capital Territory do not have a cooling-off period. The contract becomes legally binding from the fall of the hammer. This means all due diligence, including building and pest inspections, contract review, and finance approval, must be completed before auction day. If a property is passed in at auction and sold by private treaty shortly afterwards, cooling-off may also be excluded depending on the timeframe and state legislation.
Can the Cooling-Off Period Be Waived?
Yes. In Australian Capital Territory, the cooling-off period can be waived via: Solicitor's certificate and signed waiver. This is common in competitive markets where vendors prefer certainty, but it removes your right to withdraw without penalty. Always seek independent legal advice before agreeing to waive cooling-off.
Frequently Asked Questions, ACT Cooling-Off
The ACT provides a 5 business day cooling-off period under the Civil Law (Sale of Residential Property) Act 2003. The penalty for exercising cooling-off is 0.25% of the purchase price.
Yes. The ACT requires that building and pest inspection reports be attached to the contract. If they are not provided, the buyer may have additional rights to terminate the contract beyond the standard cooling-off period.
No. Properties purchased at auction in the ACT have no cooling-off period. All due diligence must be completed before auction day.
Cooling-Off in Other States
Related Resources
- Exchange of Contracts Explained, Understand what happens when contracts become legally binding.
- Pulling Out After Signing a Contract, Your options and financial consequences if you change your mind.
- How to Read a Property Contract, A buyer's guide to understanding every clause before you sign.
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