A guide to your rights to a cooling-off period.

By Maria Loni

In New South Wales, Section 66W of the Conveyancing Act 1919 allows a purchaser to waive the cooling-off period when buying a property at auction. The cooling-off period is a set timeframe during which a buyer can change their mind and withdraw from the contract without any penalty.

By signing off on a Section 66W certificate, the buyer essentially waives their right to the cooling-off period. This means that once the contract is signed, it becomes legally binding, and the buyer cannot back out of the purchase without incurring significant financial consequences.

The 4 KEY factors you should consider before making a decision:

1. Certainty

By signing off on a Section 66W certificate, you eliminate the uncertainty that comes with the cooling-off period. Once the contract is signed, the deal is done, and you can proceed with confidence. However, this also means that you need to thoroughly research and inspect the property before committing to the purchase.

2. Finance and Legal Advice

Before signing off on a Section 66W certificate, it is advisable to seek professional advice from a solicitor or conveyancer. They can review the contract, conduct necessary searches, and ensure that you fully understand the implications of waiving the cooling-off period.

3. Property Inspection

Without the cooling-off period, you need to ensure that you have thoroughly inspected the property and are satisfied with its condition. It is recommended to engage a qualified building inspector and pest inspector to identify any potential issues that may affect the property's value or your decision to purchase.

4. Auction Dynamics

The decision to sign off on a Section 66W certificate may also depend on the nature of the auction and the competition involved. If you are confident in your bidding strategy and believe that the property is in high demand, waiving the cooling-off period can give you a competitive advantage.

Conclusion:

Overall, a Section 66W certificate can be a useful tool in expediting a property transaction. It allows buyers to demonstrate their commitment and potentially secure a property in a competitive market.

However, it is essential to carefully weigh the benefits against the risks and seek professional advice before making a decision. Remember, buying a property is a significant financial commitment, and it's crucial to make informed choices every step of the way.

If you're unsure about whether to sign off on a Section 66W certificate, consult with a qualified conveyancer or lawyer who can guide you through the process and ensure that your interests are protected.

If you would like legal advice about issuing a Section 66W certificate or require assistance in purchasing a property, get in touch with us!

Here at Purpose Lawyers, we offer a Complimentary 15-minute advice session. Please contact us on 1300 806 106 or email us at info@purposelawyers.com.au to arrange your complimentary advice session today!