Cooling-off period NSW — rights, length and how it works
The NSW cooling-off period for residential property is 5 business days from exchange, allowing the buyer to rescind with a 0.25% forfeit. It does not apply to auction purchases or when waived by a section 66W certificate.
The NSW cooling-off period gives buyers a final chance to confirm finance, inspections, and contract terms after exchange. Understanding when it applies, when it doesn't, and how to waive it is essential before signing — we explain the rules and how to use the period strategically.
What this service delivers
- Buyer rights and 0.25% forfeit explained
- When cooling-off doesn't apply (auctions, section 66W)
- How to use the period for inspections and finance confirmation
Frequently asked questions
- How long is the NSW cooling-off period?
- 5 business days from exchange for residential property; it does not apply to auctions.
- What does it cost to cool off?
- 0.25% of the purchase price is forfeited from the deposit; the remainder is refunded.
- What is a section 66W certificate?
- A certificate signed by the buyer's lawyer or licensed conveyancer waiving the cooling-off period — common when the seller requires immediate certainty.
- Can the cooling-off period be extended?
- Yes, by written agreement with the seller before exchange or before the period expires.