Cooling Off Period

In NSW the Conveyancing Act 1919 provides purchaser’s of residential property with a 5 business day cooling off period. The cooling off period comes in handy if you have not yet obtained unconditional loan approval or had an opportunity to have pest and building inspectors run a close eye over the property and ensures that the seller cannot sell the property to anyone else in the interim.

If the finance approval does not come in as expected, the property has building defects, or you just do not want to proceed, then you may pull out of the contract at any time up to the cooling off period, although if you do, you will forfeit 0.25% of the purchase price (often called the ‘holding deposit’) paid to the real estate agent (for instance $1,250.00 on a property purchased for $500,000.00).

Purchasers should be aware that there is no cooling off period for residential property purchased at auction or on the same day that the property was auctioned.

If you need advice whether signing the contract with the cooling off period is the right decision for you, then feel free to contact us or Get a Quote Now.