How it works
- The parties sign an option deed with the agreed price and a sale contract attached
- The buyer pays an option fee, often credited towards the deposit if the sale goes ahead
- During the call period the buyer may exercise the call option
- If the buyer does not, the seller may exercise the put option during the put period
- When either option is exercised, the attached contract becomes binding
Cooling-off and options by state
| State | What to know |
|---|---|
| Queensland | The statutory 5 business day cooling-off period does not apply to an option contract or a sale contract formed by exercising an option. |
| New South Wales | Cooling-off rules apply to residential options. 2025 amendments to the Conveyancing Act confirm there is no further cooling-off when a put option is exercised, and the revised cooling-off notice must be used in option agreements from 1 June 2026. |
| Victoria | Whether and when a cooling-off right applies depends on how the option is structured. The seller's Section 32 statement must be given before the buyer signs. Get advice on the specific deed. |
Risks to check before signing
- Whether the option fee is refundable, and when
- Transfer duty: an option or nomination may have duty consequences
- Whether the buyer can nominate or assign the option to someone else
- Finance: a put option can force you to buy even if your loan falls through
- Seller disclosure, including the QLD Form 2 or NSW contract documents, where required
Useful tools: our fees · instant quote · Section 32 guide
Common questions
Is a put and call option the same as a contract?
Not at first. It is an option deed. A binding sale contract forms only when one side exercises its option.
Can a put and call option be used to avoid stamp duty?
Do not rely on it for that. Duty can apply to options, assignments and nominations. Check with the relevant state revenue office and get advice before signing.
Can DJR prepare or review a put and call option?
Yes. Options are quoted per matter. Contact us with the property state and draft documents.
Sources
- Queensland Government — Cooling-off period for residential property contracts
- NSW Government — Contracts, deposits and cooling-off
- Law Society of NSW — 2026 contract summary of changes (cooling-off notice and put options)
- Consumer Affairs Victoria — Buying property by private sale
General information only, not legal advice. Checked 14 October 2026.