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Difference in Settlement Date and Cooling-off Period Among Various States in Australia

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ChristopherLane | 16 Dec 2014, 06:45 PM Agree 0
f you are moving from one state to another in Australia and purchasing a property at your new place, the most important fact for you to know is that the process of conveyancing is state-specific. It means that various formalities relating to the legal process of a property’s transfer vary between two Australian states.

For example, if you are moving to Perth from Adelaide, your real estate purchase will be governed by conveyancing laws of Western Australia, not those of South Australia. So it will become very important to consult with settlement agents in Perthto know about the applicable conveyancing laws of Western Australia.

Practically, there are many differences when it comes to conveyancing in two separate states, but the most obvious ones are the cooling off period and the settlement period.

Here is the standard settlement period and cooling off period for various states in Australia.

Victoria
Cooling off period is three clear business days, while the settlement period is 60 days.

Western Australia
Cooling off period doesn’t apply, but you can consult with settlement agents across Perth as there are exemptions to this rule. For example, under the Retirement Village Act a cooling-off period only applies to a Contract of Sale of Land located within a retirement village. Settlement period is 4-6 weeks

Tasmania
There is no provision of cooling off period in Tasmania. Settlement period is 30 days.

South Australia
In residential property purchases, the cooling off period is two clear business days. Settlement period is 30 days. Like most other states, there are exceptions of this period and conveyancers in Adelaide or anywhere else in South Australia would advise you on them.

Northern Territory
Cooling off period is four business days, but instead of exchange of contract, it begins as soon as the legal representative or conveyancer receives the contract. The settlement period is 28 days.

Queensland
Cooling off period is five clear business days, while the settlement period is 30 days.

Australian Capital Territory
Cooling off period is five business days, while the settlement period is 30 days.

New South Wales
Cooling off period ends on 5.00pm on the fifth business day of exchange of contract. Settlement period is six weeks.

The important thing to consider here is that both cooling off period and settlement period are negotiable, meaning buyers and sellers can specify these periods in the contract of sale as per their convenience.

Besides, there are exceptions on how cooling off period applies in many of these states. A certain procedure needs to be followed when buyers withdraw from the deal during the cooling off period. For example, you can only exercise your cooling off right in Adelaide if written notice is served on the seller by your conveyancer on time.

By ThinkConveyancing
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