Top 3 Ways Buyers Can Get Away — and Steps to Prevent Them

You have found the right buyer, agreed on a price, and are ready to move forward. Everything feels like it is finally coming together. Then suddenly, the buyer backs out.

Unfortunately, this happens more often than many sellers realise. A sale can fall apart for many reasons — from finance problems to last-minute hesitation — leaving the seller frustrated and financially exposed.

Understanding how buyers can legally withdraw and what you can do to prevent it is key to keeping your sale on track. Here are the top three ways buyers manage to get away and the steps your property lawyer can take to protect you.

1. Cooling-Off Periods: The Legal Escape Window

In most private treaty property sales, buyers are given a short period of time after signing the contract to reconsider their decision. This is called the cooling-off period, and it is built into state property laws to protect consumers.

How it works

The cooling-off period allows a buyer to cancel the contract for any reason, usually within a few business days of exchange. They can withdraw even if there is nothing wrong with the property.

The length of the period depends on where the property is located:

• NSW: 5 business days
• ACT: 5 business days
• Victoria: 3 business days
• Queensland: 5 business days

During this time, the buyer can pull out simply by providing written notice. They will lose a small portion of the deposit (commonly 0.25 percent of the purchase price) but face no further penalty.

How to reduce the risk

Your conveyancing solicitor can help you minimise or remove the cooling-off period by:

• Requesting the buyer’s solicitor provide a s.17 certificate (ACT) or s.66W certificate (NSW) waiving the right to withdraw.

• Encouraging your real estate agent to confirm that the buyer understands the contract before signing.

• Ensuring all property details, inclusions, and disclosures are clear so there are no surprises that trigger second thoughts.

If your sale is by auction, there is no cooling-off period at all. Once the hammer falls, the buyer is legally committed to complete the purchase.

2. Finance Clauses: When the Bank Says No

Many property sales fall through because the buyer’s finance does not get approved in time.

Most contracts include a subject to finance clause, allowing the buyer to withdraw if their lender declines their loan application or takes too long to issue approval. While this protects buyers, it can create uncertainty for sellers.

What it means for sellers

Until the buyer’s finance is formally approved and the clause is marked as “satisfied,” your contract is not fully unconditional. If approval fails, the buyer can walk away without penalty and recover their deposit.

How to protect yourself

There are several steps your lawyer can take to safeguard your position:

1. Set a strict finance approval deadline — typically 10 to 14 days. This prevents the buyer from delaying unnecessarily.
2. Request written proof of pre-approval before accepting the offer. This ensures the buyer has already been assessed by their bank.
3. Avoid over-reliance on verbal assurances from agents or buyers. Only a written lender confirmation counts.
4. Include penalty clauses or the right to terminate if the buyer fails to provide evidence of finance by the due date.

If your property is attracting strong interest, your solicitor may even recommend insisting on an unconditional contract, particularly where multiple buyers are competing.

3. Building and Pest Inspections: The Buyer’s Last Line of Defence

In most states, buyers can make their purchase conditional on receiving satisfactory building and pest inspection reports.

This clause gives the buyer the right to withdraw or renegotiate if inspections uncover major issues. While it is fair for buyers to protect themselves, the clause can be used strategically to back out of a deal that they no longer want.

Common scenarios

• The inspection reveals minor issues, but the buyer demands a large price reduction.
• The buyer changes their mind about the property and uses the clause as an excuse.
• The reports are delayed, extending the conditional period and keeping the sale in limbo.

How to reduce the risk

You can protect yourself by preparing early and keeping full transparency:

1. Order a pre-sale building and pest inspection before listing. This helps you identify and fix any problems upfront.
2. Provide copies of recent inspection reports to serious buyers, showing that the property has been checked.
3. Set a short inspection timeframe in the contract — for example, 5 business days.
4. Define clear conditions for termination, such as “only for significant structural defects,” not minor maintenance.

Your conveyancing solicitor can tailor the wording of this clause so it protects both parties fairly but limits abuse.

Bonus: How Some Buyers Try to Delay Settlement

Even after a contract becomes unconditional, a few buyers still attempt to delay settlement. This may happen because their lender is slow, they have not finalised their insurance, or they simply change plans.

Late settlement can cost you time and money — especially if you are buying another property.

How your lawyer prevents it

A skilled conveyancing solicitor ensures your contract includes:

• Penalty interest payable by the buyer for each day settlement is delayed.
• Notice to complete provisions that enforce strict settlement dates.
• Clear default clauses giving you the right to retain the deposit or resell if the buyer fails to complete.

Velocity Conveyancing uses precise, legally sound contract terms to make sure your settlement is protected and enforceable.

When Is It Safe to Say Your Buyer Is Locked In?

Your sale is secure once the contract is:

• Signed by both parties
• Exchanged and dated
• All conditions (finance, inspection, etc.) are satisfied
• The cooling-off period has expired or been waived

At that point, the contract becomes unconditional — meaning both parties are legally bound to complete the transaction.

Your lawyer will monitor each milestone closely, tracking deadlines and notifying you when it is safe to celebrate.

The Hidden Cost of Losing a Buyer

When a buyer withdraws, the consequences go beyond lost time. You may face:

• Re-marketing expenses and extended holding costs
• Mortgage interest or bridging finance if you have already purchased elsewhere
• Disruption to moving plans and delayed settlement on your next property
• Emotional stress and uncertainty

Many of these setbacks are avoidable with early legal involvement. A well-drafted contract and proactive communication with your lawyer can keep the transaction stable and predictable.

How to Keep Buyers Committed

Here is a simple checklist of practical steps you can take with your conveyancer’s help:

1. Prepare your contract early — have it ready before listing.
2. Ensure full disclosure — honesty builds buyer confidence and prevents hesitation.
3. Confirm buyer finance early — request pre-approval letters through your agent.
4. Set firm deadlines for inspections and finance clauses.
5. Minimise the cooling-off period where legally possible.
6. Stay responsive — quick communication keeps momentum strong.

The smoother and clearer your process, the less likely buyers are to walk away.

Why Sellers Trust Velocity Conveyancing

Velocity Conveyancing has been protecting sellers since 1968, specialising exclusively in residential conveyancing across the ACT, NSW, and Victoria. Our experienced property lawyers handle every detail to keep your sale secure from start to finish.

We provide:

• Fixed-fee pricing with no hidden costs
• Fully compliant contracts prepared before listing
• Fast communication between solicitors, agents, and buyers
• Customised contract clauses that protect your sale
• A guaranteed fee-beat promise on any comparable quote

Our process is transparent, efficient, and designed to lock in your buyer while keeping your transaction legally watertight.

Do Not Let a Buyer Slip Away

Buyers have legal rights, but so do you. The key is knowing how to balance protection for both sides while ensuring that your sale remains firm.

Before you accept an offer or sign any contract, make sure your conveyancing solicitor has reviewed and prepared everything correctly. With the right guidance, you can sell confidently and securely — without fear of a last-minute exit.

Get a free quote today or call 1300 483 562 to speak with one of Velocity Conveyancing’s experienced property lawyers.

Your sale deserves certainty. Velocity will make sure you get it.