Conveyancing Tips – Why do I need a Cooling Off period?

Conveyancing Parramatta – An opportunity to ‘cool off’

There are many reasons why people buy property and rely on the cooling off period. One of the most common is that they are worried that someone else will buy their ‘dream home’ or they do not want to miss out on the opportunity. One way to resolve those concerns and legally secure the property is to sign the Contract for Sale of Land and pay a deposit – a course of action often encouraged by many real estate agents.

If you are buying property, the cooling off period is for your benefit – not for the vendor’s benefit. There are many reasons you might exercise your rights to ‘cool off’ during the cooling off period. For example:

  • You are still undecided about the property
  • You change your mind about buying the property
  • You do not have enough money to buy the property and you cannot raise sufficient finance
  • You are not happy with the property inspections (ie, building and pest inspections, strata title inspections)

If you do not need a cooling off period, or if a condition of the sale (imposed by the vendor) is that you buy the property without a cooling off period, it is possible to waive the cooling off period – meaning that once you sign the contract and pay the deposit, the contract will become unconditional. Getting out of the contract at that time will be more difficult and likely have more legal and financial consequences.

What are your experiences?

What are your experiences with using or relying on your cooling off period? Have you agreed to waive your cooling off rights to secure a property? Share them here.