Understanding Cooling-Off Periods in NSW Property Contracts

If you’re buying a property in New South Wales, one of the most important things to understand is the cooling-off period. It gives you a small window of time to change your mind after signing a contract without losing your entire deposit.

But not all property purchases include this protection, and there are rules around when and how it can be used. So let’s break it down in simple terms.

What Is a Cooling-Off Period?

In NSW, the cooling-off period is a 5-business-day timeframe after you sign a Contract of Sale for a residential property. During this period, you can back out of the contract for any reason no explanation needed. It gives buyers a chance to:✔ Finalise finance✔ Conduct a pest & building inspection✔ Review the contract with a conveyancer✔ Reconsider the purchase

When Does the Cooling-Off Period Start and End?

• It starts the day you sign the contract (as long as it's a business day).

• It ends at 5:00 PM on the fifth business day.

• Weekends and public holidays don’t count in the five days.

💡 Example: If you sign on a Tuesday, your cooling-off period ends at 5:00 PM the following Tuesday (assuming no public holidays in between).

What Happens If You Change Your Mind?

You can withdraw from the contract, but you will lose 0.25% of the purchase price as a penalty.

For example:

• Purchase price = $800,000

• 0.25% = $2,000 forfeited

• The rest of your deposit is returned to you

When You DON’T Get a Cooling-Off Period

There are some situations where the cooling-off period does not apply:

🚫 You buy at auction🚫 You sign a contract on the same day as an auction (for a passed-in property)🚫 You waive your cooling-off period by signing a 66W Certificate

What Is a 66W Certificate?

A 66W Certificate is a legal document signed by a solicitor that waives your right to a cooling-off period.

Some sellers or real estate agents may request it to make the deal “unconditional” right away. Don’t sign it unless you’re 100% sure and have had the contract reviewed by a conveyancer or solicitor.

Can You Extend the Cooling-Off Period?

Yes but only if the seller agrees. Your conveyancer or solicitor can request an extension, but the seller is not obligated to grant it.

Tips to Make the Most of Your Cooling-Off Period

✔ Book your building and pest inspections straight away✔ Finalise your finance approval with your lender✔ Get your contract reviewed by your conveyancer✔ Don’t delay—5 days goes fast!

Final Thoughts: Cooling-Off = Your Safety Net

The cooling-off period offers peace of mind for buyers, giving you time to do your checks and make a confident decision. But remember you only get one shot, and sometimes it’s waived, so get legal advice before you sign anything.

At SL Conveyancing, we help buyers review contracts quickly, explain your rights in plain English, and guide you through the cooling-off period with confidence.

📞 Need help with your contract? Contact SL Conveyancing today for expert advice and fast turnaround.