- How does a cooling off period work in NSW?
- When does a cooling off period apply?
- How do you exercise cooling off rights?
- Can the seller withdraw in the cooling off period?
If you’re in the process of buying a house, you would have come across a term called the ‘cooling off period’. This period entitles the buyer to certain cooling off rights, like backing out of a contract of sale before it becomes legally binding. Learn more about your cooling off rights or talk to our conveyancers if you have any questions about how to cool off a house.
How does a cooling off period work in NSW?
After a contract is signed, an amount of time is granted to every purchaser during which the contract may be rescinded. In New South Wales, the cooling off period is guided by the Property, Stock and Business Agents Act 2002, Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation 2017.
The cooling off period is typically 5 business days. This period starts soon after the exchange of the contracts and it expires at 5 pm on the 5th business day. During this period of time you have an option to rescind the contract. If you want to rescind, you will have to notify the other party in writing.
Learn more: meaning of cooling off period
When does a cooling off period apply?
The Conveyancing Act 1919 (NSW) outlines when a cooling off period applies to a residential property under Section 66Q. A residential property is:
- The land where no more than two places of residence or any other improvements are situated;
- Vacant land where construction of a single place of residence is not restricted under the law; and
- Strata lot or lots comprising no more than one place of residence only.
This means that purchasers typically have cooling off rights when they enter into a contract of sale for a residential property. However, there are some situations where the cooling off period doesn’t apply, such as:
- The house is sold at auction
- The land is more than 2.5 hectares in area
- The purchaser gives a Section 66W Certificate before or upon exchange of the contract of sale
- The house is has been listed for sale through an auction and it remains unsold, but, on the same day the property was sold through a contract of sale
For more information: private sale vs auction
How do you exercise cooling off rights?
Rescind the contract of sale
As a buyer, you have a cooling off right to back out of a contract of sale. However in NSW, you will need to pay 0.25 per cent of the purchase price if you have signed the contract and paid a deposit beforehand.
Section 66W Certificate
As the buyer, you have an option to waive the cooling off period by providing a Certificate as per Section 66W of the Conveyancing Act 1919 to the seller. The Certificate should be signed either by your property lawyer or conveyancer. A section 66W certificate essentially makes a contract to purchase property immediately binding.
Talk to Owen Hodge
If you’re purchasing a property and want to better understand your cooling off rights, please speak to our team of experts Owen Hodge. We can offer legal advice and guide you through the process. Schedule an initial consultation on [1800 770 780](1. How does a cooling off period work in NSW?
- When does a cooling off period apply?
- How do you exercise cooling off rights?
- Can the seller withdraw in the cooling off period?
If you’re in the process of buying a house, you would have come across a term called the ‘cooling off period’. This period entitles the buyer to certain cooling off rights, like backing out of a contract of sale before it becomes legally binding. Learn more about your cooling off rights or talk to our conveyancers if you have any questions about how to cool off a house.
How does a cooling off period work in NSW?
After a contract is signed, an amount of time is granted to every purchaser during which the contract may be rescinded. In New South Wales, the cooling off period is guided by the Property, Stock and Business Agents Act 2002, Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation 2017.
The cooling off period is typically 5 business days. This period starts soon after the exchange of the contracts and it expires at 5 pm on the 5th business day. During this period of time you have an option to rescind the contract. If you want to rescind, you will have to notify the other party in writing.
Learn more: meaning of cooling off period
When does a cooling off period apply?
The Conveyancing Act 1919 (NSW) outlines when a cooling off period applies to a residential property under Section 66Q. A residential property is:
- The land where no more than two places of residence or any other improvements are situated;
- Vacant land where construction of a single place of residence is not restricted under the law; and
- Strata lot or lots comprising no more than one place of residence only.
This means that purchasers typically have cooling off rights when they enter into a contract of sale for a residential property. However, there are some situations where the cooling off period doesn’t apply, such as:
- The house is sold at auction
- The land is more than 2.5 hectares in area
- The purchaser gives a Section 66W Certificate before or upon exchange of the contract of sale
- The house is has been listed for sale through an auction and it remains unsold, but, on the same day the property was sold through a contract of sale
For more information: private sale vs auction
How do you exercise cooling off rights?
Rescind the contract of sale
As a buyer, you have a cooling off right to back out of a contract of sale. However in NSW, you will need to pay 0.25 per cent of the purchase price if you have signed the contract and paid a deposit beforehand.
Section 66W Certificate
As the buyer, you have an option to waive the cooling off period by providing a Certificate as per Section 66W of the Conveyancing Act 1919 to the seller. The Certificate should be signed either by your property lawyer or conveyancer. A section 66W certificate essentially makes a contract to purchase property immediately binding.
Talk to Owen Hodge
If you’re purchasing a property and want to better understand your cooling off rights, please speak to our team of experts Owen Hedge. We can offer legal advice and guide you through the process. Schedule an initial consultation on [1800 770 780](1. How does a cooling off period work in NSW?
- When does a cooling off period apply?
- How do you exercise cooling off rights?
- Can the seller withdraw in the cooling off period?
If you’re in the process of buying a house, you would have come across a term called the ‘cooling off period’. This period entitles the buyer to certain cooling off rights, like backing out of a contract of sale before it becomes legally binding. Learn more about your cooling off rights or talk to our conveyancers if you have any questions about how to cool off a house.
How does a cooling off period work in NSW?
After a contract is signed, an amount of time is granted to every purchaser during which the contract may be rescinded. In New South Wales, the cooling off period is guided by the Property, Stock and Business Agents Act 2002, Conveyancing Act 1919 and Conveyancing (Sale of Land) Regulation 2017.
The cooling off period is typically 5 business days. This period starts soon after the exchange of the contracts and it expires at 5 pm on the 5th business day. During this period of time you have an option to rescind the contract. If you want to rescind, you will have to notify the other party in writing.
Learn more: meaning of cooling off period
When does a cooling off period apply?
The Conveyancing Act 1919 (NSW) outlines when a cooling off period applies to a residential property under Section 66Q. A residential property is:
- The land where no more than two places of residence or any other improvements are situated;
- Vacant land where construction of a single place of residence is not restricted under the law; and
- Strata lot or lots comprising no more than one place of residence only.
This means that purchasers typically have cooling off rights when they enter into a contract of sale for a residential property. However, there are some situations where the cooling off period doesn’t apply, such as:
- The house is sold at auction
- The land is more than 2.5 hectares in area
- The purchaser gives a Section 66W Certificate before or upon exchange of the contract of sale
- The house is has been listed for sale through an auction and it remains unsold, but, on the same day the property was sold through a contract of sale
For more information: private sale vs auction
How do you exercise cooling off rights?
Rescind the contract of sale
As a buyer, you have a cooling off right to back out of a contract of sale. However in NSW, you will need to pay 0.25 per cent of the purchase price if you have signed the contract and paid a deposit beforehand.
Section 66W Certificate
As the buyer, you have an option to waive the cooling off period by providing a Certificate as per Section 66W of the Conveyancing Act 1919 to the seller. The Certificate should be signed either by your property lawyer or conveyancer. A section 66W certificate essentially makes a contract to purchase property immediately binding.
Talk to Owen Hodge
If you’re purchasing a property and want to better understand your cooling off rights, please speak to our team of experts Owen Hedge. We can offer legal advice and guide you through the process. Schedule an initial consultation on 1800 770 780.