Rescission Penalty
nounre·scis·sion pen·al·typronounced rə-SIZH-ən PEN-əl-tee
Last reviewed 16 April 2026
What does the noun Rescission Penalty mean?
The fee a seller is entitled to deduct from the buyer's deposit if the buyer withdraws from the contract during the cooling-off period. The amount is set by state legislation, typically 0.2% to 0.25% of the purchase price. The remainder of the deposit is refunded.
How the noun Rescission Penalty is used
We pulled out during the cooling-off period and lost 0.25% of the purchase price as a rescission penalty, but it was worth it after the building report came back.
Synonyms
cooling-off penalty, withdrawal fee
Related words
Cite this entry
MLA citation: "Rescission Penalty." How to Property, 16 Apr. 2026, https://howtoproperty.com.au/definitions/rescission-penalty. Accessed 30 May 2026.
Chicago citation: How to Property. "Rescission Penalty." Last modified April 16, 2026. https://howtoproperty.com.au/definitions/rescission-penalty.
APA citation: How to Property. (2026, April 16). Rescission Penalty. https://howtoproperty.com.au/definitions/rescission-penalty