Welcome to the first post of the Understanding Conveyancing Video Series. In this post we will have a brief look at the Cooling Off Period in a Contract for Sale of Land, and what it means.
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.
During this period you may exercise a right to rescind, to get out of the contract, for any reason whatsoever. If you do this during the cooling off period you will forfeit 0.25% of the purchase price – but that is better than losing your deposit or more.
Some people negotiate on the terms of the contract during this period. Most people use the cooling off period to order pre-purchase searches such as strata inspection reports or pest and building inspections. We will cover this in a different post.
Cooling off periods do not apply on residential property purchased at auction, or where you have waived this period by providing the vendor with a certificate from your lawyer or solicitor.
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.