cooling off period


In NSW, a period of 5 days is allowed after exchange of contracts during which time the contract may be cancelled or rescinded. Under the new provisions to be introduced under the Civil Law (Sale of Residential Property) Act 2003 (ACT) the vendor or his/her agent will be required to prepare essential documentation before sale, a cooling off period will be introduced and the agent will be allowed to complete the sale.

In NSW:

CONVEYANCING ACT 1919 - SECT 66S

Cooling off period

66S Cooling off period

(1) Subject to section 66T, there is to be a cooling off period for every contract for the sale of residential property, during which the purchaser may exercise rights under section 66U.
(2) The cooling off period commences when the contract is made.
(3) The cooling off period ends at 5 pm on the fifth business day after the day on which the contract was made.
(4) The cooling off period may be extended by a provision in the contract, or by the vendor in writing before the end of the cooling off period.
(5) The cooling off period may be shortened by a provision in the contract, or by a separate written or oral agreement of the parties, but the provision or agreement does not take effect unless and until the purchaser gives to the vendor (or the vendor’s solicitor or agent) a certificate that complies with section 66W.
(6) The extension or shortening of the cooling off period may be effected under subsection (4) or (5) before, at or after the time the contract is made.

No cooling off period in certain cases

66T No cooling off period in certain cases

There is no cooling off period in relation to a contract for the sale of residential property if:

(a) at or before the time the contract is made, the purchaser gives to the vendor (or the vendor’s solicitor or agent) a certificate that complies with section 66W, or
(b) the property is sold by public auction, or
(c) the contract is made on the same day as the property was offered for sale by public auction but passed in, or
(d) the contract is made in consequence of the exercise of an option to purchase the property, other than an option that is void under section 66ZG.


Cooling off rights

66U Cooling off rights

(1) The purchaser under a contract for the sale of residential property may serve a written notice to the effect that the purchaser rescinds the contract.
(2) The notice may only be served during the cooling off period, but is ineffective if served after completion.
(3) The notice of rescission must be signed by:
(a) the purchaser or the purchaser’s solicitor, or
(b) if there is more than one purchaser, each of the purchasers or their respective solicitors.
(4) The notice of rescission must be served on:
(a) the vendor or the vendor’s solicitor, or
(b) if there is more than one vendor, any one of the vendors or the solicitor of any of them, or
(c) the agent of the vendor or vendors.
(5) Service of a notice under this section may be effected in accordance with section 170 or at the address of the vendor shown in the contract or (without affecting the foregoing) by facsimile transmission or in accordance with the service provisions in the contract.