The Cooling-Off Period

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When Homeowners May Withdraw from the Contract

Under Section 72 of the DBCA homeowners have a right to withdraw from a contract during what is known as a cooling-off period. Time limits and some costs apply and certain notices have to be given if the homeowner wishes to exercise these rights.

Homeowners may withdraw from the contract within five business days of receiving from you a copy of both:
• The signed contract; and
• A QBCC-approved Contract Information Statement

What if the Homeowner does not receive a copy of the signed contract and information statement?
Once the contract is made, you have five business days to give the homeowner a signed copy of the contract and an approved Information Statement. If after five business days the homeowner has still not received copies of both these documents, the homeowner may withdraw from the contract. If the homeowner receives both documents after the cooling-off period of five business days has expired, they may withdraw within five business days of the receipt date.

NOTE: This provision highlights the importance of giving the homeowner a copy of an approved Information Statement as soon as possible, preferably before or at the same time as they receive a signed copy of the contract. A delay in providing the Statement extends the period in which you are exposed to the risk of the homeowner withdrawing from the contract.