Cooling-Off Periods When Buying Property
When you have a right to change your mind after signing a pre-purchase agreement—and what it means for your deposit.
In some places the law gives you a short "cooling-off" period after you sign a pre-purchase or reservation agreement—a right to change your mind and withdraw with little or no penalty. If you're buying property, it's important to know whether you have this right, how long it lasts, and what happens to your deposit if you withdraw. Here's what cooling-off periods usually mean when buying property.
What is a cooling-off period?
A cooling-off period is a short window (e.g. 3, 5, or 14 days) after you sign during which you can withdraw from the agreement and get your deposit back (or most of it)—without having to give a reason. The idea is to protect you from pressure to sign on the spot without time to think. Not every jurisdiction has cooling-off for property; and even where it exists, it may not apply to all types of purchase (e.g. it might apply to off-plan or distance sales but not to all resales). Check your local law.
What to check in your agreement
- Does the agreement mention cooling-off? If the law gives you a cooling-off right, the agreement might say so—and might say how many days you have and how to withdraw (e.g. in writing, to a certain address). If the agreement says "you waive your cooling-off right," check whether the law allows that—in some places you can't waive it.
- What happens to your deposit if you withdraw? Do you get the full deposit back? Is there a small deduction (e.g. admin fee)? The agreement should spell it out.
- Don't waive cooling-off unless you're sure. If the seller or agent asks you to sign a waiver of cooling-off "to show you're serious" or "to speed things up," think carefully. You're giving up your right to change your mind. Only waive if you're certain and you're getting something in return (e.g. a better price).
Practical tips
- Know your rights. Before you sign, check whether your jurisdiction gives you a cooling-off period for property purchases—and how long it is. Get advice if needed.
- Act in time. If you have a cooling-off period and you want to withdraw, do it in writing before the period ends. Keep proof (e.g. sent email, registered letter).
- BeforeYouSign can highlight cooling-off and withdrawal clauses in your pre-purchase agreement so you know what your options are—and what happens to your deposit if you change your mind.