What is a cooling off period?
Here are reasons why you may withdraw during a cooling off period and how the process works.
A cooling off period allows you to change your mind about the purchase of your home as long as you do so within the time stated.
Cooling off periods vary between states and territories, so it’s important to check with your solicitor to make sure the cooling off period applies before signing a contract. Cooling off periods only apply to private treaty sales, not properties bought at auction.
Reasons why you may withdraw during the cooling off period
Some common reasons include:
- The home loan application is not approved by a lender
- A building and pest inspection or strata report reveal previously unknown issues with the property
- A buyer’s financial situation changes, like losing their job, and they can no longer afford the property
How does withdrawal process work?
If you wish to withdraw from the purchase contract, you will need to notify the seller’s real estate agent in writing of your intention to withdraw from the purchase. Your solicitor or conveyancer will be able to assist with preparing a letter on your behalf and delivering it to the agent before the end of the final day of the cooling off period.
This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.
