Important facts about the Property Purchase Cooling Off Period:
- The property purchase cooling off period is a legal entitlement allowing you to cancel a contract within a specific timeframe, for any reason.
- This flexibility gives you the chance to reevaluate your decision or seek professional advice regarding a property purchase.
- It gives you five business days from the day the contract is fully signed. It is intended to give you time to assess the property fully, or consult experts to ensure you’re making an informed decision.
- Keep in mind that exercising your right to terminate under the cooling off period may result in a termination penalty of 0.25% of the purchase price. This compensates the seller for any inconvenience caused.
- Note that the cooling off period may not always apply, for example, if you’re buying a property at auction.
- Furthermore, you may encounter a cooling off waiver. This is an additional document presented by agents. If you choose to sign it, you waive your rights under the cooling off period. We recommend you seek independent advice before signing this waiver.
