When you buy a residential property in New South Wales, generally speaking, the law prescribes that there be a 5 business-day “cooling off period”. Your Sydney Conveyancer or Conveyancing Solicitor will tell you that the cooling off period allows you, as the purchaser, the option to rescind from the Contract within that period. The cooling off period begins as soon as you exchange the contracts for sale (contract date) and ends at 5pm on the fifth business day. Your Conveyancer or Conveyancing Solicitor should remind you of the expiry of the cooling off period.
You are entitled to use your cooling off rights for any reason whatsoever. For example, if a pest inspection shows that the property is affected by termites, or simply if you change your mind.
If you wish to exercise your cooling off rights, it is necessary to give the vendor written notice of this within the 5 business-day period. The only catch with using the cooling off rights and withdrawing from the contract is that you will have to pay the seller 0.25% of the purchase price. For example, if the purchase price of the property is $500,000, you will need to forfeit to the vendor $1,250.
Note however that the vendor can require that the cooling off period is waived with effect from Exchange of Contracts, with a section 66W Certificate. The cooling off period is waived if the purchaser (or purchaser’s Lawyer) signs a section 66W Certificate.
There are other circumstances whereby the cooling off period does not apply. You should speak to one of our experienced Conveyancing and Property Lawyers to find out more about your rights to a cooling off period.
For more information, contact our office and arrange a free first home consultation with a member of our conveyancing team. We service most areas within the Sydney metropolitan area including Agnes Banks, Oatlands and Beverly Hills. For a full list of our office locations, with complete addresses, click on our Locations tab above or contact our main office line on (02) 9233 4048.
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