In NSW, residential property purchases outside of auction come with a standard 5-business-day cooling-off period, during which a buyer can withdraw for a small penalty.
If you've exchanged contracts on a house in Bronte or a unit in Randwick and are having second thoughts, the cooling-off period is your safety net, but it's shorter and more limited than most buyers expect.
The standard NSW cooling-off period runs for 5 business days from exchange. If you withdraw within that window, you forfeit 0.25% of the purchase price to the vendor, on a $2 million Sydney property, that's $5,000.
Buying at auction removes cooling-off entirely, the fall of the hammer is binding. It also doesn't apply if you exchange within a cooling-off period after an unsuccessful auction bid, or where the parties agree in writing to waive it (common when a buyer wants price certainty over a shorter path to exchange).
A solicitor's certificate under section 66W of the Conveyancing Act can waive cooling-off entirely, which sellers sometimes require to accept an offer quickly in a competitive Sydney property market. Signing one removes your right to withdraw, so it should only be done once the contract has been reviewed.
Yes, by agreement between buyer and seller, though it's uncommon once exchange has occurred.
No, the standard NSW cooling-off period applies to residential property only.
Cooling-off is a limited safety net, not a substitute for reviewing the contract before you sign. Have your conveyancer review the contract before exchange so the cooling-off period is a formality, not your only chance to catch a problem.
Get a fixed-fee quote and speak directly to the person who'll handle your matter.
This article is general information only and does not constitute legal advice. For advice on your specific circumstances, please get in touch.