What is a ‘cooling off’ period?

Cooling off period

If you buy residential property in New South Wales, you will normally have a cooling off period in which you can change your mind about going ahead with the whole transaction. The law provides that the cooling-off period starts on the day that you sign and exchange the contract and ends at 5pm on the 5th business day. A cooling off period does not apply to property bought at auction.

If you exercise your cooling off rights and withdraw from the contract during the cooling off period, you will forfeit 0.25% of the purchase price.

It is possible to waive, reduce or extend the cooling off period, however you should speak to your solicitor or conveyancer before taking any action.