Cooling-off - What exactly does it mean?
When you purchase a residential property by private treaty (not at auction) you are entitled to a cooling-off period. If you change your mind, you can terminate the contract with no penalties during the cooling-off period, but please contact your conveyancer if you wish to ‘cool off’ to make sure you do so correctly.
When does my cooling-off period start?
Your cooling-off period will start from either the date the contract is fully signed (by both Vendor and Purchaser) or the date the Form 1 Vendor’s Statement is correctly served on you – whichever is later.
From this date, you have two business days to cool off. Your cooling-off period then ends at midnight on the second business day.
How do I make the most of my cooling-off period?
During your cooling-off period, your conveyancer can check over your Form 1 and let you know if there are any anomalies.
You should also use this time to discuss with your conveyancer any concerns you may have and make enquiries with the relevant government authorities to clarify any of their responses in the Form 1.
Your cooling-off period is also the ideal time to arrange your building and pest inspection and to have one last, long, think about your commitment to purchase the property!
Yes, I want to proceed. What now?
At the end of your cooling-off period your deposit will be due.
This is generally paid to the real estate agent and your conveyancer will then guide you through to settlement.
No! I don’t want to proceed! What now?
Contact your conveyancer immediately so they can help you prepare a cooling-off notice to give to the Vendor and/or agent before your cooling-off period expires.
Your conveyancer will check the Methods of Service provided in the Form 1 to ensure the notice is served correctly.
Your deposit will be refunded, and your house hunting can continue!
Tuckfields deals with dozens of property transactions each day, and our friendly team would be delighted to answer any other questions you may have which are specific to your personal situation.
Please get in touch today.
Please note that the information contained in this article is of a general nature only and does not constitute legal advice. Tuckfield Agent Solutions does not take responsibility for any errors or omissions obtained from the use of this information.