{"id":35410,"date":"2022-12-22T14:00:28","date_gmt":"2022-12-22T03:00:28","guid":{"rendered":"http:\/\/propertyupdate.com.au\/?p=35410"},"modified":"2022-12-24T00:59:53","modified_gmt":"2022-12-23T13:59:53","slug":"cooling-period-garth-brown","status":"publish","type":"post","link":"https:\/\/propertyupdate.com.au\/cooling-period-garth-brown\/","title":{"rendered":"What is the cooling-off period for property purchase?"},"content":{"rendered":"

When you buy a residential property in NSW there is a five business-day cooling-off period after you exchange sale contracts.<\/strong><\/p>\n

During this period you have the option to get out of the contract as long as you give written notice.<\/p>\n

The cooling-off period starts as soon as you exchange and ends at 5pm on the fifth business day.<\/p>\n

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Note: <\/span>A cooling-off period does not apply if you buy a property at auction or exchange contracts on the same day as the auction after it is passed in.<\/p><\/div><\/div>\n

You can waive the cooling-off period by giving the\u00a0seller a\u00a0\u201866W certificate<\/a>\u2019.<\/strong><\/p>\n

This is a certificate that complies with Section 66W of the Conveyancing Act 1919<\/a>.<\/i><\/p>\n

The certificate needs to be signed by your solicitor or conveyancer<\/a>.<\/p>\n

If you use your cooling-off rights and withdraw from the contract during the five business-day period, you will have to pay the seller 0.25% of the purchase price.<\/p>\n

This works out to be $250 for every $100,000.<\/strong><\/p>\n

Sometimes, there are more buyers looking for homes than there are properties on the market<\/p>\n

This is called a sellers\u2019\u00a0market.<\/p>\n

In this case, you may want to organise a quick contract exchange.<\/p>\n

This way you can reduce the possibility of someone beating your offer and get your building and pest inspections done during the cooling-off period.<\/p>\n

You will still be able to back out if there is a problem.<\/p>\n

However, it is important to have the contract checked by your solicitor or conveyancer before you sign it.<\/p>\n

Please refer NSW Fair Trading website<\/a>.<\/p>\n

Why is\u00a0it applied to purchasers only?<\/span><\/h2>\n

A \u201ccooling-off\u201d period<\/b> is part of a legally binding contract and in Real Estate it has implications for the Purchaser (ONLY) to act within that period if they decide not to proceed with the contract.<\/p>\n

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Note: <\/span>It does not apply for the Seller.<\/p><\/div><\/div>\n

When you buy goods or services from a trader, you are entering into a contract.<\/p>\n

Before you do, make sure you understand what you are agreeing to, remember \u2026<\/p>\n

A contract is an agreement made between two or more parties that is legally enforceable.<\/p>\n

A contract arises when one party makes an offer and the other party communicates an intention to accept it. Contracts can be in writing or made verbally.<\/p>\n

You could be entering a contract by:<\/strong><\/b><\/p>\n