A cooling of period is a time frame of three business days after the signing of a contract by a purchaser when he may change his mind and withdraw from the sale. It does not apply to the vendor; only the purchaser. It applies only to residential properties - with no price limit - not commercial ones.

A cooling off period is not applicable to a property that is bought at an auction. Nor does it apply if the buyer is a company or estate agent. And if the buyer has sought independent legal advice before signing, it does not apply either.

When the purchaser exercises this cooling off period, he must be reimbursed for nearly all the money that he has paid, which usually consists of the deposit. The excepted amount is either $100.00 or 0.02% of the purchase price whichever is the greatest.

The three days begins from the time the purchaser signs the agreement, whether or not the vendor has signed it. If the vendor does not sign for three days, then the cooling off right is lost. But the purchaser can still withdraw from the sale on the basis of the vendor not signing. If a contract does not contain a cooling off clause, then the purchaser may withdraw from the sale at any time.