In many jurisdictions in Australia, it is compulsory for a contract for the of sale the property to contain a cooling of certificate. This is part of the procedure required in New South Wales under the conveyancing legislation. This certificate says that there is a seven-day cooling off period in relation to the transaction where the contract can be in the if 0.25% of the purchase price is forfeited. A cooling off certificate is a certificate which is used to waive the cooling off period which is normally used in the purhchase of a property.
However, in many cases real estate agents and vendors will ask for a poorly off wave to be given by the buyer so that they have no right to rescind the contract after exchange of contracts has occurred. once this waiver is given, if the purchaser does not follow through with the contract they risk losing their deposit. When the cooling off certificate is given they must also immediately pay the are contractually agreed deposit which is usually 10% of the purchase price of the property. It is not well understood that if you do not go through with the contract you do risk losing deposit. There is some argument to suggest that there is an equitable right to recover deposit, however vendors will not abide by this law in every case and will sometimes risk keeping the deposit despite the possibility of action in equity to recover it.
If you need a cooling off certificate to be issued to you because you’re in the middle of the conveyancing process and have just exchanged contracts we can provide this to you. We can also see the transaction through to its conclusion at settlement. If you would like to inquire about obtaining according a cooling off certificate please do not hesitate to enter your inquiry into the Inquirer box to the top right of this page.
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