There’s no cooling off period on a standard real estate contract in Western Australia. Once both parties have signed, you’re bound. If you want a way out, it has to be written into the contract as a condition before you sign.
What being bound actually means
Signing an offer and acceptance is not a step towards a contract. It is the contract. From that point you’re committed to buying at that price on those terms. The only ways out are the ones the contract itself gives you.
If you walk away without a lawful termination, the seller can keep your deposit and claim what the failed sale cost them. That’s usually the difference between your price and what the property later sells for.
The contract you are signing
The standard form contract used in Western Australia is published jointly by the Real Estate Institute of Western Australia and the Law Society of Western Australia. It runs to two pages and incorporates a booklet of terms and conditions known as the General Conditions. The contract is usually completed by hand at the agent’s office.
The detailed terms are in a separate booklet, the General Conditions, which forms part of your contract even though it is not attached to it. Ask the agent for a copy before you sign.
How to give yourself a way out
Anything you want to be able to rely on later has to be a condition in the contract. The common ones are:
- finance approval by a date, so the contract ends if your lender says no
- a building inspection and a timber pest inspection you find acceptable
- the sale of your existing home by a date
- a satisfactory strata company search on a strata lot
A condition only helps if it’s drafted properly and its date is realistic. “Subject to finance” with no date attached to it is worth very little. Get the wording checked before you sign rather than after.
Buying off the plan works differently
A buyer of an off the plan strata lot has limited rights to avoid the contract in some circumstances. Those rights come from the strata legislation rather than from the contract. They are narrower than most buyers expect. Take advice before you sign an off the plan contract.
You have signed and you want out
Get advice the same day. What’s available depends on whether every condition has been satisfied and on how the seller has responded so far. Both of those change quickly.
Don’t tell the agent you’re pulling out before you have had that advice. What you say can narrow your options.
Frequently asked questions
How long is the cooling off period in WA?
There isn’t one on a standard real estate contract. The contract binds you from the moment both parties have signed.
Can I cancel if my finance falls through?
Only if the contract has a finance condition and you have complied with it. Without that condition, your lender declining you is your problem rather than the seller’s.
Does the seller get a cooling off period?
No. Once both parties have signed, the seller is bound on the same terms you are. A seller who changes their mind is in the same position as a buyer who does.
Talk to us before you sign
We review offer and acceptance contracts for buyers and sellers on residential and commercial property settlements across Perth and Western Australia.
Call the settlements team on (08) 9220 4430 or download an itemised quote for your own purchase.
Related: What is a settlement?
This article is general information and not legal advice. Every property transaction turns on its own facts.
