If you have bought property in another Australian state, you may be used to having a few days after signing to change your mind. In Western Australia, that does not exist.
WA is one of the only jurisdictions in Australia where residential property contracts have no statutory cooling-off period. Once both parties have signed, the contract is binding. Here is what that means and what protections do exist.
Once you sign, you are bound
Under the Sale of Land Act 1970 (WA), a signed contract of sale is immediately binding on both parties. There is no period in which a buyer can simply change their mind. If a buyer pulls out without a valid contractual reason, they risk losing their deposit and potentially facing a damages claim from the seller. This applies to residential private sales, sales by tender, and most off-the-plan purchases.Western Australia
NoneNo statutory cooling-off period
Victoria
3 daysApplies to most residential sales
Queensland
5 days0.25% penalty to withdraw
South Australia
2 daysApplies to residential sales
New South Wales
5 days0.25% forfeit to withdraw
The protections WA buyers do have
The absence of a cooling-off period does not mean buyers are without protection. WA has a different mechanism: the Form 1. Once a valid Form 1 is served, the buyer has three business days to rescind the contract without penalty. Outside that window, exit is only possible through specific contractual conditions.Form 1 rescission right
Three business days after a valid Form 1 is served, the buyer can rescind without penalty.
Finance conditions
If finance is not formally approved by the agreed date, the buyer can exit without penalty.
Building and pest inspection conditions
A failed inspection within the specified timeframe can provide grounds for termination or renegotiation.
Special conditions
Specific conditions negotiated between parties which if not met allow for exit.
All of these protections depend on the conditions being correctly drafted before you sign. This is exactly what a contract review is designed to check.
How to protect yourself
1
Get a contract review before signing
A licensed settlement agent will review your contract for risks and conditions before you are bound. Included as standard through SettleHQ.
2
Make sure conditions are correctly drafted
Finance, inspection and special conditions need to be clear and complete. A vague condition may not protect you the way you expect.
3
Understand the Form 1 timeline
Your settlement agent manages the Form 1 process. Ask them to explain your rescission rights so you know exactly when and how you can act if needed.
4
Do not sign under pressure
You are entitled to take the time needed to review what you are signing. If you feel rushed, that is a reason to pause, not to proceed.
