What is Cooling Off?
A period after signing where you can cancel the contract without penalty (except reasonable costs).
When It Applies
- Contracts over certain value thresholds
- Residential building work
- Varies by state
- Usually 5-10 business days
By State
- NSW: 5 business days
- VIC: 5 business days
- QLD: 5 business days (over $3,300)
- WA: Check current requirements
- SA: 5 business days
How to Exercise
- Give written notice within the period
- Keep proof of delivery
- Don't let work start during cooling off
What You May Pay
- Reasonable costs incurred by builder
- Typically up to specified maximum
- Must be actual costs, not penalty
When It Doesn't Apply
- You waive cooling off (get legal advice first)
- Emergency repairs
- Below threshold amounts
- Commercial work