It’s always an exciting time in anyone’s life when they decide to property elsewhere. Checking out real estate agents, online and visiting offices can get the juices flowing before that special moment when it looks like the perfect new house has been found.

There’s still lots to go through before a sale is complete, not least making sure that it is affordable and will prove to be somewhere that provides a good investment and the location is all that it seems. However, sometimes decisions can be made on raw emotion, which might be regretted later. Therefore, some buyers in NSW would do well to speak to a leading lawyer if they have any slight doubts and find out what is a cooling-off period.

  • Once a contract is signed, the purchaser is granted an amount of time, usually 5 days, when they can reverse their decision and the contract can be rescinded. That time is called the cooling-off period. It might be that the buyer has got their financial calculations wrong, or they suddenly discover proposed plans to the neighbourhood which will influence their future quality of life. Or a partner out of nowhere changes their mind and decides that they don’t like the new home, which does happen occasionally.
  • While the rescinding of the contract is obviously going to cause disappointment and some inconvenience, it can be carried out relatively smoothly, but it is recommended to seek qualified legal guidance. The first course of action is informing the other party in writing, which isn’t a bad thing as their emotions are likely to be raw. Perhaps the buyer reneging should instead concentrate on getting some comprehensive IT support services to check out further properties.
  • If the sale in question relates to a residential property and falls into the regulatory criteria for being one, a contract can be rescinded. However, there are times when a cooling off period will not apply and should be considered before they make a purchase. One occurs where a house has been sold at an auction. Once the contract is signed, that is the end of it.
  • If the house is part of 2.5 hectares of land, the period will not apply, as well as if it remains unsold at auction, but is sold through a contract of sale on the same day. There can be other complications, which is another reason to employ the services of an experienced lawyer when buying a home. Maybe, a visit to a historical park museum might offer another way to cool off.
  • NSW law states that those who wish to rescind their contract during their cooling-off period will be required to pay 0.25% of the purchase price if a contract was signed and the deposit was paid beforehand.

A cooling-off period can offer a get-out clause for those who make a mistake when signing a contract to purchase a house, but to ensure compliance it is advised to approach qualified lawyers to handle the issue.