What is the 3 day cooling off period and when is a purchaser entitled to it?

The cooling off period allows a purchaser to terminate a contract for the purchase of a residential property within 3 clear business days from the day on which the purchaser signs that contract. Purchasers who exercise their rights to cool off are entitled to a refund of the deposit less the greater of $100.00 or 0.2% of the purchase price. The vendor may retain this penalty.

A cooling off period is not available in the following situations:

• if the contract is signed at auction or 3 clear business days before or after an auction;
• if the parties have previously entered into a Contract for the property;
• if the purchaser received independent legal advice before signing the contract; or
• if the purchaser is an estate agent or a corporate body (e.g. a company).

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