By Tim McKibbin, REINSW CEO
WHEN buying a residential property in NSW, you are entitled to a five-day cooling off period after the exchange of contracts (except if buying at auction).
While the contract is binding on the vendor at exchange, the cooling off period is the purchaser’s right. It allows you to finalise financial arrangements, conduct reports and evaluate your purchase (or deal with buyer’s remorse).
As a buyer, you can waive your right to a cooling off period using a section 66W certificate, and it is common for vendors to insist on this at exchange.
Before committing, be sure of your finances and understand the condition of the property. It is best to be prepared before exchange.
If you exercise your right to exit during the cooling off period, it will cost you 0.25 per cent of the purchase price.