A cooling off period gives you time to cancel the contract if you change your mind. In New South Wales, the period is 3 clear business days and starts when the contracts have been exchanged.
You can choose to waive your right to cool off or to shorten the period. If you require more time, you can request to extend the period – this will be at the seller’s approval.
The cooling off period ends at 5pm on the last day. If you do not exercise your cooling off rights, you must continue with the purchase (subject to any terms and conditions).
It is important to know that if you exercise your cooling off rights, you must pay a termination penalty of 0.25% of the purchase price. This amount is usually taken from the deposit that has been paid.
When does a cooling off period not apply?
You will not have the benefit of a cooling off period if you purchase a property:
- At auction
- In a private sale on the day a property was scheduled for auction
- That is larger than 2.5 hectares in area
How do I exercise my cooling off right?
You must give written notice to the seller if you want to cancel the contract within the cooling off period. Your representative can do this on your behalf.
Your instructions to your representative must be provided in writing (by email).
