A cooling-off period is a set window after signing a contract in which a buyer can withdraw. In New South Wales it lasts five business days (ten for off-the-plan contracts), starting on exchange and ending at 5pm on the fifth business day after exchange (tenth for off-the-plan).
The cooling-off period is a consumer protection mechanism letting you withdraw within the window without major penalty — time to review the contract, seek legal advice, and confirm the decision suits your best interests. If you rescind during the period, you forfeit 0.25% of the purchase price to the vendor, with the balance of your deposit refunded. You can shorten or extend the period by agreement with the vendor (best done in writing). You can also waive it entirely by providing a Section 66W certificate — this must be signed by your own licensed conveyancer, solicitor or barrister, who has to explain to you the effect of the contract, of giving the certificate, and of waiving the cooling-off period. It doesn't apply if: you've waived it via a 66W certificate; the property is sold by public auction; the contract is entered into the same day the property was passed in at auction; or the contract is formed by exercising an option to purchase. To cool off: notify the vendor before 5pm on the last day — telling your conveyancer alone isn't enough, they need time to pass it on. Don't leave it until the last minute.
At a glance
| Rule | New South Wales |
|---|
| Cooling-off window | Five business days (ten for off-the-plan contracts) |
| Penalty to withdraw | 0.25% of the purchase price |
| When it doesn't apply | Sale by public auction; a contract entered into the same day the property was passed in at auction; a contract formed by exercising an option to purchase; or where cooling-off is waived via a Section 66W certificate |
By transaction type
| Transaction type | Cooling-off period | Penalty if you rescind | Section 66W waiver? |
|---|
| Standard private treaty | 5 business days (ends 5pm) | 0.25% of the purchase price | Yes — waives cooling-off entirely |
| Off-the-plan | 10 business days (ends 5pm) | 0.25% of the purchase price | Yes — waives cooling-off entirely |
| Bought at public auction | None | Not applicable — no cooling-off right exists | N/A — no statutory cooling-off applies |
