In NSW, after you exchange contracts for a residential property, you benefit from a 5-business day cooling-off period. This timeframe allows buyers to reconsider their decision and withdraw from the contract without legal repercussions. However, be aware that you may forfeit part of your deposit in the process.
Cooling-off periods are specifically for private treaty sales and do not apply to auction purchases. It’s crucial to consult with Kaz Conveyancing to understand how these rights pertain to your contract before you sign.
Why Withdraw During the Cooling-Off Period?
There are several reasons you might change your mind about a property purchase during this period. For instance, a building and pest inspection or the strata report may reveal concerning issues, or your financing could be declined. Additionally, if you come across another property that better fits your needs, or if external factors, like new developments that obstruct views, arise, you may choose to withdraw.
Cost of Withdrawing
If you decide to exercise your cooling-off rights, the vendor is typically entitled to retain a small portion of your deposit. In NSW, this is generally 0.25% of the purchase price, while the remainder is refunded to you.
How to Withdraw
To officially withdraw, you must notify the vendor’s real estate agent in writing before 5pm on the last business day of the cooling-off period. Kaz Conveyancing can assist you in drafting and delivering the necessary notification called a rescission of contract to ensure a smooth process.
Waiving the Cooling-Off Period
Opting to waive the cooling-off period can demonstrate your strong interest in a property, potentially making your offer more appealing to the vendor. This results in what’s known as an unconditional contract of sale. However, keep in mind that cooling-off periods are designed to protect buyers from unforeseen developments.
For expert guidance on cooling-off periods and property transactions, reach out to the Kaz Conveyancing team today.
Email: [email protected] or call us on 02 8999 0594.