Understanding the cooling-off period  
 
     
 

If you're going to buy or sell property, it helps to familiarize yourself with the basics of the conveyancing process. One of the most important parts of that process is the cooling-off period. During that 5-day window of time, a buyer has the opportunity to double-check all of the arrangements. If he wants, he can terminate the contract by paying a small fee.

When Does the Cooling-Off Period Occur?

There's often a lot of confusion about when the cooling-off period occurs. A skilled real estate Campbelltown professional will be able to walk you through the entire process. It will help, though, if the buyer knows that a cooling-off period starts right after the contracts have been exchanged. It continues until 5pm on the fifth business day. Make sure to be clear about when your specific cooling-off period starts and end so that there are no mistakes.

What is the Purpose of the Cooling-Off Period?

Generally, a cooling-off period was created for the purpose of giving buyers one last chance to make sure that they have chosen the right property, financing and investment. Sometimes, in the heat of the moment, people settle on arrangements that aren't really sensible. With the five-day cooling-off period, the buyer will find a chance to review every detail of the transaction and will be able to ascertain if he wants to pursue acquisition of the property. Most people get through the cooling-off period and and continue on with their purchase.

What Happens if You Terminate the Contract During the Cooling-Off Period?

As a buyer, you always have the right to terminate your contract during the cooling-off period. This is the normal way in which a Macarthur real estate agents would proceed with the transaction. If you do decide to withdraw from the deal, though, you will have to pay a penalty that equals 0.25% of the purchase price. For every $100,000, then, you would have to pay $250. Still, that's a small price to pay if you decide to withdraw for a very good reason. Just having the option is enough to reduce a lot of anxiety.

Can You Waive the Cooling-Off Period?

Sometimes, buyers elect to waive the cooling-off period altogether. This often occurs in instances where a property is being hotly pursued by several potential buyers; in order to secure the property, some buyers will waive their rights to cooling-off periods. Waiving that right is easy and can be accomplished by having a solicitor a 66W certificate. Should you choose to go this route, your real estate agent or solicitor will know exactly how such kind of arrangement can be handled. As you can see, the cooling-off period is a practical and worthwhile part of the conveyancing process.

 

 

 

 

 

 

 

 

 

 

Back to top
   
  CONTACT :
Phone : 4628 0033 Fax : 4628 4165 Email by clicking
here
 
 
  Home | Why Prudential | FAQ | Costs | Since 1988 | Free Resources | Useful Links

© Copyright Michael O'Sullivan (Real Estate) Pty Limited 2011