What is a cooling off period?
In NSW, Section 66S of the Conveyancing Act 1919 establishes the concept of a “cooling off period” in matters involving the sale of residential property. A cooling off period is a period of time during which a purchaser can change their mind and rescind the contract without significant penalty.
A cooling off period commences on the date of the contract (also known as the date of exchange). It will expire at 5pm on the fifth business day after the contract date. In some circumstances, the cooling off period can be extended by agreement between the vendor and purchaser.
Does a cooling off period apply to all property sales in NSW?
No. A cooling off period only applies to the sale of residential land in NSW. It does not apply to the sale of commercial, industrial or rural property.
In addition, a cooling off period does not apply if you purchase a property at auction.
What is the purpose of a cooling off period?
A purchaser usually uses a cooling off period to:-
What happens if I change my mind during the cooling off period?
A purchaser is entitled to “rescind” the contract during the cooling off period. The purpose of “rescission” it to return the parties to the position they were in before the contract was entered into.
A Notice of Rescission must be served on the vendor. A purchaser is entitled to a full refund of any deposit paid less 0.25%.
A cooling off period is only for the benefit of a purchaser. The vendor cannot rescind the contract during the cooling off period.
Can the vendor ask me to waive my right to a cooling off period?
Yes, a vendor can ask you to waive your rights to a cooling off period by asking you to provide a signed s66W Certificate.
A s66W Certificate must be signed by a solicitor or licensed conveyancer after the provision of comprehensive advice on the contract.
Why choose Mothers in Law Lawyers?
At Mothers in Law Lawyers, our solicitors and conveyancers will thoughtfully guide you through each and every step of the conveyancing process. We understand that making the decision to purchase a property is a significant financial and emotional commitment. We will treat your matter with the care and professionalism it deserves from beginning to end.