If you have bought or are about to buy residential property in New South Wales, you would have heard of the cooling-off period. It is a short window after you sign the contract when you can still change your mind. But it is more limited than many people expect.

How long it lasts

In New South Wales, the standard cooling-off period is 5 business days, starting the day the contract is signed. It can be shortened, extended, or waived in some situations, so it is worth checking what applies to your contract specifically.

It usually comes with a cost

If you pull out during the cooling-off period, you will typically forfeit 0.25% of the purchase price to the seller. It is not free to change your mind, but it is a lot less costly than pulling out after the period ends.

It doesn't apply to every sale

Properties bought at auction do not have a cooling-off period. Once the hammer falls, the contract is binding. This is one of the reasons it pays to get advice before auction day, not after.

Commercial and rural properties over 2.5 hectares also do not include a cooling off period.

What to do with the time

Use the cooling-off period to get your finance finalised, arrange building and pest inspections and strata inspections (if applicable) if you have not already, and have your contract properly reviewed. Do not let it pass by without checking these things.

Getting the timing right matters

Every contract is a little different. We will make sure you know exactly where you stand before you sign anything.

Have a contract in hand?

Send it through and we will talk you through your cooling-off rights and anything else worth knowing.

This information is general in nature and does not constitute legal advice. For advice specific to your circumstances, contact us today.