Your exit rights depend on the postcode, not the contract
Whether you can walk away from a signed property contract — and what it costs if you do — is decided by state law, not by the vendor or the agent. rules vary across every Australian jurisdiction, and at those rights disappear entirely. Before you bid or sign, you need to know which set of rules applies to the property you are buying.
On an identical contract, exit costs vary wildly by state:
- NSW, QLD, and ACT: 0.25% of the purchase price .
- VIC and SA: the greater of $100 or 0.2% of the purchase price .
- WA and TAS: no statutory cooling-off period at all .
- NT: full deposit refunded, no penalty .
These are not edge cases. They are the default rules that apply the moment you sign.
No cooling-off at auction — anywhere in Australia
The single most important rule in this step is that contracts are unconditional from the moment the hammer falls. You have no cooling-off rights in any Australian state or territory when you buy at auction .
In practical terms: you cannot walk away because your building inspection found problems. You cannot walk away because your finance fell through. You cannot walk away because you changed your mind overnight. If you sign and cannot settle, the vendor can sue for damages and keep your deposit.
Several states extend this rule beyond auction day. Victoria strips cooling-off rights from any contract signed within 3 clear business days before or after the auction . Queensland removes them for contracts signed on auction day or within 2 clear business days after a property . These rules exist so buyers cannot bypass the no-cooling-off rule by negotiating immediately after a pass-in.
This is why pre-auction preparation — finance approval, building and pest inspection, solicitor contract review — is not optional. It must be done before auction day.
Reserve prices and vendor bids — what you can and cannot see
A is the minimum price a vendor will accept at auction. In most states it is set in writing before the auction begins but is not disclosed to bidders . Victoria is changing this: legislation announced in November 2025 will require vendors to publish their reserve price at least 7 days before auction, with no changes permitted after publication. It takes effect in 2026 and will be the first law of its kind in Australia .
A is a bid made by the auctioneer on behalf of the seller to move bidding toward the reserve. Vendor bids are legal in every Australian state, but the auctioneer must declare them openly at the time . Undisclosed bids on behalf of the vendor — bids — are illegal everywhere and carry significant penalties.
The deposit rule most buyers underestimate
In every mainland state, the auction deposit is 10% of the purchase price, paid on the spot when the hammer falls . You cannot bid at auction without access to that money. On a $750,000 property, you need $75,000 available on the day — cash, bank cheque, or electronic transfer. Confirm accepted payment methods with the agent before auction day.
If you want to pay a lower deposit (5% is sometimes possible), you must negotiate it with the agent before the auction — not on the day. Once bidding starts, the published auction terms apply.