What is a 10 day cooling-off period?
Asked by: Wyman Lowe | Last update: February 16, 2026Score: 4.1/5 (62 votes)
A 10-day cooling-off period is a legal right for consumers to cancel certain contracts (like timeshares, door-to-door sales, or new real estate purchases) within 10 days of signing, allowing them to reconsider without penalty, ensuring they aren't pressured into impulsive decisions. This period, also called the right of rescission, lets buyers review terms, finances, and seek advice, and sellers must refund money and handle deposits/trade-ins if cancelled, often within 10 days.
What does a 10 day cooling-off period mean?
Cooling-off period
During this period, you may get out of the contract as long as you give written notice. A longer cooling-off period applies for properties sold off the plan, because these contracts are often large and complex. A 10 business day cooling-off period applies to these contracts.
What is the 10 day cancellation policy?
10-Day Right of Rescission Information
It protects consumers from high-pressure sales tactics or impulsive decisions. During this 10-day period, the buyer or contracting party can provide written notice of cancellation to the seller, developer, or issuer.
What is the cooling-off period rule?
The Cooling-Off Rule gives you three days to cancel certain sales made at your home, workplace, or dormitory, or at a seller's temporary location, like a hotel or motel room, convention center, fairground, or restaurant. The Rule also applies when you invite a salesperson to make a presentation in your home.
What is considered a cooling-off period?
This is the period of time you have to change your mind about something you've purchased from a distance. For most goods or services, you should be given a cooling-off period of at least 14 days under the Consumer Contracts Regulations.
What You Don’t Know About The 10-Day Cooling Off Period
Are you legally entitled to a cooling-off period?
14 days is the minimum cooling-off period that a seller must give you. Make sure you check the terms and conditions in case they've given you more time to change your mind - many choose to do so.
Can I pull out of a contract after signing?
You generally cannot cancel a signed contract easily, as it's legally binding, but you might be able to if there's a specific "cooling-off period" (like for some door-to-door sales, timeshares, or home loans), a termination clause in the contract, mutual agreement, or if the other party significantly breached the terms, committed fraud, or there was mutual mistake. For most standard agreements, cancelling without cause means you'll likely face financial penalties or be in breach of contract, so checking contract terms or seeking legal advice is crucial.
What happens if I change my mind after signing a contract?
You can't simply “unsign” a contract once it's binding: After all parties have signed, contracts are enforceable by default—but termination rights, cooling-off periods, or mutual agreement can still provide a lawful exit.
Can a buyer pull out after signing contracts?
Yes, a buyer can back out of a contract, but it's generally only penalty-free if they use a specific contingency in the contract (like inspection, financing, appraisal) or a state-mandated cooling-off period; otherwise, they risk losing their earnest money deposit and facing potential lawsuits for breach of contract. Building protective contingencies into the purchase agreement is the best way to allow for a penalty-free exit if circumstances change.
On what grounds can a customer ask for a refund?
If a product or service is faulty, broken or not as described, depending on the problem, you may have the right to a refund, repair or replacement.
Can I cancel a contract I just signed?
You generally cannot cancel a signed contract easily, as it's legally binding, but you might be able to if there's a specific "cooling-off period" (like for some door-to-door sales, timeshares, or home loans), a termination clause in the contract, mutual agreement, or if the other party significantly breached the terms, committed fraud, or there was mutual mistake. For most standard agreements, cancelling without cause means you'll likely face financial penalties or be in breach of contract, so checking contract terms or seeking legal advice is crucial.
Can a seller refuse a refund?
Customers have exactly the same rights to refunds when they buy items in a sale as when they buy them at full price. It's illegal to restrict or take away customers' rights or to mislead them about their rights, for example by displaying a sign that says you do not accept returns or offer refunds.
Can I hand my car back within 14 days?
Under the Consumer Contracts Regulations (2013), the main difference between online and in-person car purchases is the cooling-off period. For online purchases, consumers have a 14-day cooling-off period to cancel the contract and return the vehicle without giving a reason.
Can I get a refund if I changed my mind?
You don't have an automatic right to get your money back if you just change your mind about something you've bought and there's nothing wrong with it. It's the same no matter how expensive the item was - it's really down to the seller whether they offer you anything.
Can you back out of a contract after signing for a house?
In California, this is typically the California Residential Purchase Agreement (RPA). Once signed, it's a legally binding contract—your 'point of no return,' though with some key exceptions. At signing, you'll also provide an earnest money deposit as a good-faith gesture.
What happens during a cooling-off period?
What is a cooling off period? During a cooling off period, a buyer can withdraw from a property contract of sale without any legal repercussions even after they've signed it. Cooling off periods are only available for property sales by private treaty and can vary between states and territories.
What reasons can a buyer back out of a contract?
Valid reasons to back out of buying a house include failed inspections, financing issues, low appraisals, title problems, and unmet contingencies. Here are the most common legitimate grounds for withdrawal: Contingency-Based Reasons: Home inspection reveals major defects (foundation, electrical, structural issues)
How do you void a contract after signing?
Contracts can be cancelled if both parties agree. This is often formalized through a written termination agreement to ensure neither side has further obligations. If one party fails to perform their obligations, the other may have the right to cancel.
Can a seller change mind after signing a contract?
A seller generally cannot back out of a contract simply because they receive a better offer. Once a binding contract is signed, the seller is obligated to adhere to its terms unless a specific contingency allows for withdrawal.
Do you have 72 hours to back out of a contract?
The 72-hour contract law allows consumers the right to cancel a contract during what is referred to as a "cooling off" period. The timeframe for canceling is usually 72 hours, which means a consumer has until midnight after the third day the contract is signed.
What are three things that can cause a contract to be void?
Three major reasons a contract becomes void are illegal purpose (involving unlawful acts like drug deals), lack of legal capacity (one party is a minor or mentally incapacitated), and impossibility of performance (an unforeseen event makes it impossible to fulfill). Other common causes include mutual mistakes or fraud, rendering the agreement unenforceable from the start.
Can I withdraw after signing a contract?
You generally cannot cancel a signed contract easily, as it's legally binding, but you might be able to if there's a specific "cooling-off period" (like for some door-to-door sales, timeshares, or home loans), a termination clause in the contract, mutual agreement, or if the other party significantly breached the terms, committed fraud, or there was mutual mistake. For most standard agreements, cancelling without cause means you'll likely face financial penalties or be in breach of contract, so checking contract terms or seeking legal advice is crucial.
How long after signing a contract can you back out?
Cooling-off Rule is a rule that allows you to cancel a contract within a few days (usually three days) after signing it. As explained by the Federal Trade Commission (FTC), the federal cooling-off rules gives the consumer three days to cancel certain sales for a full refund.
What happens after a cooling-off period?
After the cooling-off period, you will enter into the settlement period, which is a standard of 42 days. The settlement period includes paying the property purchase price, signing and exchanging all legal documents, transferring the title into your name, and visiting the Lands Titles Office to complete the process.
What happens if my buyer pulls out?
A buyer can technically pull out after exchange, but doing so comes with serious financial consequences. At exchange, the buyer pays their deposit, which is usually non-refundable. They may also be liable for the seller's costs, including legal fees or financial losses resulting from the failed sale.