Cooling Off
In NSW purchasers of residential property are given a 5 business day cooling off period. During the cooling off period you can pull out of the contract for any reason - if you do, you forfeit the ‘holding deposit’ paid to the agent, which is 0.25% of the purchase price (for example $875.00 for a property purchased for $350,000.00).
There is NO cooling off period if you purchase a property at auction, or if you sign a contract the same day the property went to auction.
During the cooling off period you will need to satisfy yourself of the condition of the property (see buyer beware) and ensure that your bank has progressed your loan approval from ‘pre-approval’ to ‘unconditional approval’.
