The contract for your first home in South Australia is finally signed. What if you need time to inspect the house or confirm the loan? South Australian law gives buyers in a private sale two business days to complete checks, with the option to cancel.

Cooling Off Period in South Australia: A First Home Buyer’s Guide

Continue reading for a step-by-step guide to the cooling-off period. You will also find out how to cancel, what happens to your deposit, and when buyers waive the right.

Key Takeaways

• South Australian buyers in a private sale have two business days to cancel the contract.
• Read the Form 1 statement early, as it lists key facts about the property.
• To cancel, give the seller a signed, written notice and keep proof of delivery.
• The deposit then comes back to the buyer, minus up to $100.
• To give up cooling-off rights, get a lawyer’s certificate before signing.

Two Days to Rethink the Deal

The cooling-off period comes from the Land and Business (Sale and Conveyancing) Act 1994. It lasts two clear business days. Property sales at auction are excluded.

The two days start once the buyer has the signed contract and the Form 1 vendor statement. Only full weekdays count, with public holidays and the delivery date left out. If the buyer gets the Form 1 on a Friday, the deadline is normally the end of Tuesday.

A building inspector can check the roof, walls and signs of pests within the two days. The buyer may also ask the bank to confirm the home loan. At auction, every check needs to happen before bidding.

Read the Form 1 Early

The Form 1 is the official statement from the seller of a South Australian property. Buyers must receive it before settlement, the day the sale is finalised.

The document lists key facts about the land, such as mortgages, rights of way and planning rules. Part B of the Form 1 explains the cooling-off rights. A careful read lets the buyer check every detail before the two days end.

Property lawyers and conveyancers can explain any part of the statement in plain words. For an auction, the agent must make the Form 1 available at their office for three business days beforehand. Buyers can also read it at the venue for 30 minutes before bidding starts.

How to Cancel the Contract

A written cooling-off notice cancels the contract. The buyer must sign it. List the property address and contract date in the notice as well.

Send the letter to the seller or their agent. The law accepts email too. The notice must reach the seller before the second clear business day ends.

Under South Australian law, proof of delivery is the purchaser’s job. Keep a copy of the notice and evidence of sending, such as the sent email or a postal receipt.

What Happens After You Cool Off

Once the notice is given, the contract ends straight away. The buyer and seller are then released from its terms. From any deposit paid, the vendor may keep up to $100. The rest must go back to the buyer. On a $5,000 deposit, at least $4,900 is returned.

When Buyers Waive Cooling Off

Sometimes a seller asks the buyer to waive, or give up, cooling-off rights before agreeing to the sale. South Australian law then requires a certificate from a lawyer. The document confirms the buyer received independent legal advice on the waiver before signing.

Before giving up the right, finish the building inspection, read the Form 1 and secure the home loan. A special condition in the contract can also make the sale depend on the bank’s approval.

Property lawyers explain the waiver certificate and review each clause before you sign.

Buy Your First Home With Confidence

Cooling-off rules give you two days for checks and a clear way to cancel. Contact Melissa Barlas, property lawyer and host of the First Home Show podcast, to arrange a meeting. She can talk through your questions, decisions or past experiences with buying a home.

Frequently Asked Questions

How long is the cooling-off period in South Australia compared with other states and territories?

South Australia gives two clear business days, Victoria three and the Northern Territory four. New South Wales, Queensland and the Australian Capital Territory allow five. In Western Australia and Tasmania, a cooling-off period applies only if the contract includes one.

Does the seller have a cooling-off period too?

The cooling-off right belongs to the buyer alone. Once the contract is made, the seller follows its terms through to settlement.

Can the seller send the Form 1 by email?

Yes. South Australian rules allow the statement to reach the purchaser by email. Keep a copy of the message, as its date starts the cooling-off period.

What if the Form 1 arrives close to the settlement date?

For a private sale, the seller must provide the Form 1 at least 10 clear days ahead of settlement. Sometimes the statement arrives in the last two business days before the home changes owners. A cooling-off notice can then be given at any time up to settlement.

What happens when the cooling-off period expires?

The sale continues once the second clear business day ends. The next step is settlement, when the buyer pays the rest of the purchase price.