A buyer signs a contract for an Adelaide home on Monday and by Tuesday is unsure she made the right choice. What does the SA 2-day cooling-off period give her?
Correct Answer
D) It lets the purchaser reconsider and withdraw, forfeiting at most a small deposit
The 2-day cooling-off period protects purchasers by providing a short window to reconsider the purchase, obtain independent legal or financial advice, and withdraw from the contract with minimal financial consequences.
Why This Is the Correct Answer
Under s 5 of the Land and Business (Sale and Conveyancing) Act 1994 (SA), a purchaser can rescind by written notice within two clear business days. The vendor may keep a deposit only up to $100, or any greater amount prescribed.
Why the Other Options Are Wrong
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