South Australian Cooling-Off Period Explained
South Australian residential property cooling-off is two clear business days from the day you receive the signed contract (Form 1). Weekends and SA public holidays don't count. Rescission must be in writing before the deadline ends. Cooling-off doesn't apply at auction (you waive it by bidding) or if you've explicitly waived it in writing.
What 'two clear business days' actually means
The day you receive the contract doesn't count. Then two full business days must pass. Weekends don't count. SA public holidays don't count.
Example: contract received Thursday. Friday is day 1. Monday is day 2 (assuming no public holiday). You must rescind before end of business Monday.
Example with weekend: contract received Friday. Monday is day 1. Tuesday is day 2. Wednesday is the deadline.
Example with public holiday: contract received Thursday before a long weekend. Friday is day 1. Tuesday after the long weekend is day 2. Wednesday is the deadline.
How to rescind
Rescission must be in writing. Email is generally accepted but a written letter is the safer route.
Address the rescission to the seller (via the selling agent if necessary). Note the property address, the date of the contract, and that you're rescinding under SA cooling-off provisions.
Your conveyancer should draft the rescission letter. Don't try to DIY this - a poorly-worded rescission could be contested.
Get a confirmation of receipt. Email read receipts, certified mail, or in-person delivery with witness.
What you forfeit
SA cooling-off forfeit is a small portion of the deposit (typically $100 or 0.2% of purchase price, whichever is greater). The balance of the deposit is refunded.
Compared to the cost of being locked into an unsuitable purchase, the forfeit is negligible. Don't let it influence the decision.
When cooling-off doesn't apply
Auction purchases - you waive cooling-off by bidding.
If you explicitly waive cooling-off in writing (sometimes requested by sellers in tight markets - don't sign this without conveyancer advice).
Some commercial purchases and business sales.
If you've already signed a contract that confirms you've taken advice from your conveyancer.
Using cooling-off for inspections
Most buyers use cooling-off to confirm finance, get a building inspection, and review the Form 1. Two clear business days is tight - book inspections immediately.
Many inspectors in the matching network offer same-day or next-day reports during cooling-off (sometimes at a premium). Brief us with the urgency and we route accordingly.
Read the building inspection report immediately on receipt. If major defects are found, you have hours, not days, to make a decision.