Can a Buyer Cancel a Contract After Signing in Queensland?
Yes, a buyer can cancel a contract after signing in Queensland; however, this is only permitted under certain circumstances, and penalties may be involved. If you’ve received a signed contract for your Gold Coast property, you’re likely breathing a sigh of relief. But this is a common concern that many sellers ask.
Understanding the Contract of Sale in Queensland
In Queensland, once a buyer signs the contract of sale and both parties have executed it, the contract becomes legally binding; however, a 5-business-day cooling-off period still applies (unless waived).
The standard REIQ contract used for most residential sales in Queensland outlines all the key terms, conditions, and buyer rights, including the ability to terminate under specific clauses.
The 5-Day Cooling-Off Period (Buyer’s Right)
What is it? Under Queensland law, a buyer has five business days from receiving a copy of the signed contract to terminate the agreement for any reason, even if they change their mind.
Can the buyer cancel without penalty? No. If the buyer uses the cooling-off period to withdraw, they’ll be required to pay the seller a termination penalty of 0.25% of the purchase price.
For example:
- $1,000,000 property = $2,500 penalty to the seller.
This gives the seller some compensation, but it doesn’t cover emotional stress or lost time, especially if you had other offers on the table.
Other Reasons a Buyer Can Legally Pull Out
Beyond the cooling-off period, a buyer can only withdraw without penalty under specific contract conditions:
1. Finance Clause (Usually 14-21 Days). If the contract is subject to finance and the buyer is unable to secure their home loan within the agreed-upon timeframe, they can terminate; however, they must provide written proof from their lender.
💡 Tip: You can negotiate shorter finance periods to reduce uncertainty.
2. Building & Pest Inspection (Typically 7–14 Days). If the buyer discovers significant structural issues or pest infestations during their inspections, and the contract is subject to this clause, they can either:
- Request repairs,
- Negotiate a price reduction, or
- Terminate the contract.
📌 Minor defects are not usually grounds for termination, only serious or costly issues.
3. Other Special Conditions
Contracts can also include:
- Subject to the sale of the buyer’s property
- Subject to legal review
- Subject to the body corporate records being satisfactory
If the buyer’s solicitor flags any issues during these periods, they may terminate without penalty.
When Can’t a Buyer Pull Out?
Once the cooling-off period ends and all conditional clauses are satisfied, the contract becomes unconditional. At this point:
- The buyer cannot withdraw without incurring serious legal or financial consequences.
- If they do, they may be in breach of contract, and the seller may be entitled to:
- Keep the deposit (usually 5–10%)
- Claim damages
- Resell the property and sue for any loss in value
What Happens to the Buyer’s Deposit If They Default?
If the buyer fails to complete the settlement without valid grounds:
- The deposit is forfeited to the seller.
- You may also be able to seek compensation if you sell the home for less in a resale.
- Your conveyancer or solicitor will guide you through issuing a notice to remedy breach, which starts the legal process.
How Sellers Can Protect Themselves
Here’s how to reduce the risk of a buyer backing out:
- Pre-qualify your buyer – Ask if they have pre-approval in place.
- Negotiate strong conditions – Keep timeframes tight for finance and inspections.
- Use a skilled conveyancer – They’ll draft a watertight contract and handle any termination attempts.
- Avoid unnecessary delays – Buyers are more likely to walk if a sale drags out.
- Stay in touch – A responsive agent can maintain momentum and identify potential issues early.
What Should Sellers Do If a Buyer Tries to Pull Out Illegally?
- Contact your solicitor or conveyancer immediately.
- Issue a formal breach notice (if the buyer has gone unconditional and defaults).
- Consider re-marketing the property—but only after legal advice.
- Document all communication for potential future claims.
Thinking of Selling? I’ll Guide You Through the Process
Selling your property isn’t just about finding a buyer—it’s about finding the right buyer who can settle on time without surprises.
- Vetting buyers early
- Drafting smart, protective contracts
- Navigating legal hiccups when they arise
Let’s talk about how to safeguard your sale and secure the best outcome.
✅ FAQs
1. Can a buyer cancel after signing the contract?
Yes, during the cooling-off period or under specific contract conditions, such as finance or building and pest.
2. What is the penalty for pulling out during the cooling-off period?
The buyer must pay 0.25% of the purchase price to the seller.
3. Can I keep the deposit if the buyer backs out at the last minute?
Yes, if the buyer defaults after the contract becomes unconditional, the deposit is usually forfeited.
4. What happens if a buyer delays settlement?
You may charge penalty interest or issue a notice to complete, depending on the nature of the delay.
5. How do I prevent a buyer from backing out?
Use tight contract conditions, work with an experienced conveyancer, and ensure the buyer is financially ready.
More Smart Seller Questions Answered
Gold Coast Home Selling Costs Calculator: Know Before You List
Wondering how much it really costs to sell your home on the Gold Coast? From agent commissions and marketing fees to legal expenses and moving costs, the numbers add up quickly.
That’s why I created the Gold Coast Home Selling Costs Calculator, a free, easy-to-use tool designed to give you clarity before you commit. It’s tailored to local conditions and helps you avoid hidden surprises, so you can plan your next move with confidence.
Whether you’re downsizing, upgrading, or relocating, knowing your true selling costs puts you in control. Try the calculator now and take the first step toward a smarter, more informed sale. Let’s go from Selling to SOLD—together.
THIS IS HOW YOUR JOURNEY TO A SUCCESSFUL GOLD COAST PROPERTY SALE STARTS
My simplified guide below will take you through a 20-step process for selling your property anywhere on the Gold Coast;
I proudly sell homes across the entire coast.
1. PREPARING YOUR GOLD COAST PROPERTY FOR SALE + SOME OF THE LEGAL REQUIREMENTS
- Tidying gardens and decluttering everything inside and out.
- All homes for sale, are legally required to have hardwired photoelectric, interconnected smoke alarms.
Non-removable 10-year battery smoke alarms can be installed as an alternative.
- By law, you are required to complete a pre-contractual seller’s disclosure statement: generally related to limitations, restraints, or defects in the property title, such as easements, covenants, leasing, zoning, etc.
- A pool safety certificate is also required if you have a swimming pool or if the property has a shared swimming pool (Body Corporate).
2. COMPARATIVE MARKET ANALYSIS REPORT FOR YOUR GOLD COAST PROPERTY
After showing me around your property, I will provide you with a Comparative Market Analysis (CMA) report. This is a detailed, legally required analysis of your home’s market value.
The CMA is based on recently sold and for-sale properties similar to yours in the immediate area. I will need to view your home to prepare this report.
3. SETTING A MARKETING BUDGET FOR YOUR GOLD COAST HOME
The third step in selling your home is to create a marketing budget.
By law, this must be based on actual costs.
There are various marketing options to consider, such as:
– Internal, External and Drone Photography.
– Property and House Plans show potential buyers the exact layout of your home and property.
– Internet Advertising on platforms such as RealEstate.com.au, Domain.com.au, Facebook.com, Instagram.com, etc.
– For Sale Sign on the street is still essential to attracting potential buyers. Even though many buyers start their search online, they often drive around neighbourhoods to see what’s available.
A simple fact: Not having a For Sale sign can significantly reduce the number of people who see your property and may be interested in buying it.
4. PREPARING AND APPROVING THE FORM 6 AGREEMENT WHEN SELLING A GOLD COAST PROPERTY
A Form 6 Agreement is a document provided by the Queensland State Government. It outlines all relevant details of the property sale, including the marketing budget.
Our administration team will prepare this form for you and send it for your review and approval.
5. PAYING THE MARKETING BUDGET FOR YOUR GOLD COAST PROPERTY
Once you have approved the Form 6 Agreement, the next step is to pay for the marketing budget that you have chosen.
6. STARTING THE ADVERTISING PROCESS
Once your payment is received, the advertising campaign will commence.
Advertising strategies will align with the choices you made within your marketing budget.
7. MONITORING MARKET RESPONSE
If your property hasn’t received offers within 30 days, don’t assume there’s no interest.
It often means the price isn’t aligned with what buyers are willing to pay at this time.
This is your signal to review and adjust your pricing strategy so your home remains competitive and receives the attention it deserves.
8. ARRANGING BUYER VIEWINGS
When buyers express interest in your property, viewings will be arranged to allow them to see your home in person; you need to be away from the property during these viewings.
This helps potential buyers feel relaxed and visualise themselves as the new owners, thereby forming a deeper connection with your property.
9. CONSIDERING A BUYER’S OFFER
When you receive an offer on your home, it means a buyer is serious and ready to move forward at a certain price.
This is a key moment in your selling journey. Take the time to go over the offer carefully.
Look beyond the price; check the terms, conditions, and settlement timeframes. Make sure it works for you before accepting, countering, or declining.
10. ACCEPT, COUNTER, REJECT
When an offer is presented, you will need to respond by accepting, countering, or rejecting it.
Accepting locks in the agreed-upon price and terms.
Countering proposes changes and initiates further negotiations. If countering, present revised terms clearly; open, respectful communication is key for a smooth sale.
Rejecting means the offer is unacceptable; in this case, respond promptly and professionally, explaining your reasoning for the decision.
11. YOUR LEGALITIES
When you finally accept an offer, you will engage your conveyancer or solicitor to facilitate the legal requirements to complete the sale.
If you are part of a Body Corporate, you will need to provide a Disclosure Statement from them.
Your solicitor will use PEXA to settle your property. Part of the process requires Verification of Identity. Also, anyone selling a property must complete an ATO Clearance Certificate.
12. BUYER’S DEPOSIT
The buyer’s deposit is a crucial step in the property purchase process; it will be held in the agency’s Trust account.
This is a tangible expression of the buyer’s commitment to purchase your property.
13. BUILDING AND PEST INSPECTIONS
Typically, a buyer will arrange for a building and pest inspection report to be completed, usually within 14 days of the contract date.
Additionally, they may have the contract subject to finance, which is generally applicable for 21 days from the contract date.
14. COMPLETING YOUR GOLD COAST PROPERTY SALE
Based on the outcome of the building and pest inspection report, as well as any finance being sought, the buyer will proceed with their offer or withdraw it.
At this point, the sale either falls through or becomes unconditional.
15. LOOKING FOR YOUR NEW PROPERTY
If the sale becomes unconditional, it is time to start looking for a new property. Remember, there is no need to rush.
It is essential that you take your time, as this needs to be a very considered purchase.
Your new home is of substantial value and can be costly if you change your mind. Something you may want to investigate is Short-Term Bridging Loans.
16. ALTERNATIVES YOU SHOULD CONSIDER
An alternative to seriously consider when deciding where to live between selling and buying is renting while you look for a new property.
Renting for a short period gives you breathing room; it allows you time to clear your head, make a confident, considered decision, and ultimately buy where you truly want to live, with no pressure or panic.
17. TIME FOR YOU TO MOVE
Leaving your home opens doors to a new chapter full of new beginnings. Embrace the excitement of a fresh start and cherish the memories you’ve made.
Every box you pack brings you one step closer to a new adventure full of possibilities that lie ahead.
18. YOUR SALE CONCLUDES
The culmination of the property sale is settlement; it marks the transfer of the property to the new buyer.
As the final chapter concludes, this marks a sense of achievement: your property has now SOLD.
19. YOUR FUTURE OPTIONS
If you have chosen to rent, you will continue to look for and eventually purchase a property, apartment, or perhaps even buy land and build; now there’s something to consider.
20. TIME TO UNWIND AND MAKE YOUR NEW HOME YOUR OWN
As you unpack and furnish your new home, embrace the gradual process of creating your haven.
Enjoy the transformation, one room at a time.
Relax in the tranquillity of your surroundings and immerse yourself in the gentle sounds of your new neighbourhood.
Explore the nearby parks and cafes; enjoy the unique charm of your new community.
Remember, settling in is a journey in itself; it’s not a race. Embrace the process of creating a home that reflects your unique style and personality.
Whether you’re downsizing, relocating or just ready to move on, I’ll guide you through every step of selling your Gold Coast home with confidence and ease.
Navigating the intricacies of selling your property can be complex, but it doesn’t have to be.
My 20-step guide provides a simplified general overview; as you would naturally expect, your steps may vary.
Author – Craig Douglas
I’m a local real estate agent who specialises in helping homeowners sell their property for the best possible price. I’d love to connect with you to see how I can help you get you SOLD.
Are you ready for a conversation about selling your Gold Coast home?
Let’s get you Selling
LET’S GET YOU SOLD
Craig Douglas 0418 189 963
Professional | Knowledgeable | Experienced
You can find me working at a Boutique Real Estate Agency
These are just some of the suburbs that I proudly sell homes in:
Nerang
Please Note: The information contained in this document is for general information purposes only and does not constitute legal advice. The laws and regulations governing the sale of property in Queensland are complex and constantly changing. It is important to seek the advice of a qualified property lawyer or conveyancer before making any decisions about the sale of your property. This document does not take into account your individual circumstances and may not apply to your situation. By reading this document you agree that you have not relied on the information contained herein and that you will seek independent legal advice before taking any action.
This page was proudly created by Craig Douglas, your local independent Gold Coast real estate agent, working for a Boutique Real Estate Agency. Selling residential and commercial properties, from those that are awe-inspiring, through to a diamond-in-the-rough, otherwise known as a “renovator’s delight“.
I negotiate and sell on behalf of property owners who want to get the best possible price, with the least amount of hassle. Let’s talk about the process of selling your property over a coffee to get you started – 0418 189 963
