Conveyancing Parramatta – Getting out of the contract during the cooling off period
Are you shopping for a new home or residential investment property? If you buy residential property in New South Wales, you will be generally covered by a cooling off period, which starts on the date of exchange and expires at 5pm on the 5th business day after exchange.
Even if you have signed a Contract for Sale of Land and paid a deposit, you are still able to get out of the contract during the cooling off period. Getting out of the contract during the cooling off period means you will forfeit 0.25% of the purchase price, but that is better than losing your whole deposit or breaking the contract and potentially being liable for other penalties.
If the statutory cooling off period of 5 business days is not long enough, you may be able to extend it – but you should seek professional advice and guidance from your lawyer or conveyancer.
When does a cooling off period NOT apply?
A cooling off period does not apply to all property transactions. The cooling off period does not apply if
- You buy non-residential property (ie, offices, shops, industrial property etc)
- You buy at an auction or on the same day as the auction
- Your lawyer or conveyancer provides the vendor with a certificate indicating that you have waived your cooling off rights.
In a further posts, we will address some other frequently asked questions around the cooling off period – including ‘Why do I need a cooling off period?’, and ‘Can I renegotiate the Contract during a cooling off period?’. Post your other questions here.
Look out for our other articles on conveyancing and property transaction in New South Wales. We are conveyancing lawyers in Parramatta providing fixed fee conveyancing services and updates in property law.