Three things every buyer should understand before signing: how long you can change your mind, when the property becomes your risk to insure, and the standard clause timeframes.
If you buy by private sale, a cooling-off period lets you withdraw within a set time, usually for a small penalty. It must be provided for in the contract, and it does not apply when you buy at auction.
| State / Territory | Cooling-off period | Notes |
|---|---|---|
| NSW | 5 business days | Penalty of 0.25% of the purchase price if you withdraw. |
| VIC | 3 business days | Penalty of $100 or 0.2% of the purchase price, whichever is greater. |
| QLD | 5 business days | Penalty of 0.25% of the purchase price. |
| ACT | 5 business days | Penalty of 0.25% of the purchase price. |
| NT | 4 business days | No penalty to withdraw within the period. |
| SA | 2 business days | Runs from receipt of the contract or Form 1 statement. |
| WA | None | No statutory cooling-off period — rely on contract conditions. |
| TAS | None | No statutory cooling-off period — rely on contract conditions. |
The point at which you become responsible for damage to the property varies by state and by contract. Where risk can pass before settlement, you should arrange building insurance from that date.
| State / Territory | Risk typically passes | What it means for you |
|---|---|---|
| QLD | From 5pm the next business day after the contract date | Insure early — the property is at your risk well before settlement. |
| NSW | On completion (settlement) | Many buyers still insure from exchange to be safe. |
| VIC | On settlement or possession | Vendor carries risk until then; confirm in your contract. |
| SA | On signing the contract (exchange) | The property is at your risk from the date you sign — arrange cover (at least a cover note) straight away. |
| WA | On settlement / possession | Arrange cover to start from settlement day. |
| TAS | On signing the contract (exchange) | The property is at your risk from the date you sign — arrange cover straight away, especially for houses. |
| ACT | On completion (settlement) | Confirm the exact trigger with your conveyancer. |
| NT | Varies by contract | Check the contract terms with your conveyancer. |
These figures are a general guide and can change. QLD, SA and TAS are the ones to watch — in QLD risk passes the day after you sign, and in SA and TAS it passes as soon as you sign the contract. Don't leave insurance until settlement in those states. Always confirm the trigger in your specific contract with your conveyancer.
For a private-sale (non-auction) purchase, your conveyancer can include conditions that protect you. These are the usual timeframes.
You typically have around 14 days from the contract date to arrange and act on a building and pest inspection.
Generally around 21 days from the contract date to obtain formal loan approval. Pre-approval makes this far easier to hit.
The period between signing and taking ownership. Usually 30 to 90 days, negotiable to suit both parties.
This information is general only and does not constitute legal, financial or real estate advice. Cooling-off periods, insurance risk rules and clause timeframes vary by state and by individual contract, and can change over time. Always verify the specifics with your conveyancer or solicitor before signing.