Cooling-Off Period in New South Wales (NSW)
NSW cooling-off period is 5 business days with a 0.25% penalty. Learn how it works under the Conveyancing Act 1919, when it applies, and how to exercise your rights.
Definition
New South Wales Cooling-Off Period
New South Wales cooling-off is 5 business days under the Conveyancing Act 1919 (NSW).
Quick Facts
| Duration | 5 business days |
| Penalty | 0.25% of purchase price |
| Legislation | Conveyancing Act 1919 (NSW) |
| Starts | When the buyer or their solicitor receives a copy of the contract signed by both parties |
| How to Exercise | Written notice to the vendor or their agent before the period expires |
| How to Waive | Section 66W certificate — a written certificate from the buyer's solicitor or conveyancer confirming they have explained the effect of the contract |
Exceptions
The cooling-off period does not apply in the following situations in New South Wales:
- Properties sold at public auction
- Properties purchased on the same day as a failed auction
- Where a Section 66W certificate has been issued
Does Cooling-Off Apply at Auction?
No. Properties purchased at public auction in New South Wales do not have a cooling-off period. The contract becomes legally binding from the fall of the hammer. This means all due diligence — including building and pest inspections, contract review, and finance approval — must be completed before auction day. If a property is passed in at auction and sold by private treaty shortly afterwards, cooling-off may also be excluded depending on the timeframe and state legislation.
Can the Cooling-Off Period Be Waived?
Yes. In New South Wales, the cooling-off period can be waived via: Section 66W certificate — a written certificate from the buyer's solicitor or conveyancer confirming they have explained the effect of the contract. This is common in competitive markets where vendors prefer certainty, but it removes your right to withdraw without penalty. Always seek independent legal advice before agreeing to waive cooling-off.
Frequently Asked Questions — NSW Cooling-Off
Cooling-Off in Other States
Related Resources
- Exchange of Contracts Explained — Understand what happens when contracts become legally binding.
- Pulling Out After Signing a Contract — Your options and financial consequences if you change your mind.
- How to Read a Property Contract — A buyer's guide to understanding every clause before you sign.
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