Your offer has been accepted and the agent wants to exchange contracts. Before you sign, it helps to know exactly what the cooling-off period gives you, what it costs to walk away, and what you give up if you waive it.
What is the cooling-off period?
When you buy a residential property in NSW by private treaty, you usually get a cooling-off period after contracts are exchanged. During this time you can pull out of the purchase, even though the contract is signed.
How long is the cooling-off period in NSW?
For an established home, the cooling-off period is 5 business days. It starts as soon as contracts are exchanged and ends at 5pm on the fifth business day after the day of exchange.
For example, if you exchange at 10am on a Tuesday, your cooling-off period ends at 5pm the following Tuesday. Weekends and public holidays are not counted.
If you are buying off the plan, the cooling-off period is longer: 10 business days.
What does it cost to pull out?
If you rescind (cancel) the contract during the cooling-off period, you forfeit 0.25% of the purchase price. That works out to $250 for every $100,000. On a $900,000 home, that is $2,250.
To rescind, you must give the seller written notice before the cooling-off period ends. Your conveyancer can prepare and serve this for you so the timing is right.
Does the seller get a cooling-off period?
No. The cooling-off period is for buyers only. Once contracts are exchanged, the seller is bound to go ahead with the sale.
When there is no cooling-off period
You will not have a cooling-off period if:
you buy the property at auction
you exchange on the same day as the auction, after the property was passed in
you give the seller a 66W certificate (see below)
This is why getting the contract checked before auction day matters. If you are the winning bidder, the contract is unconditional on the spot.
Can the cooling-off period be changed?
Yes. You and the seller can agree in writing to shorten, extend or waive the cooling-off period. Buyers sometimes ask for a longer period to finish a building inspection or finalise finance. Sellers and agents sometimes ask buyers to waive it so the sale is locked in.
What is a 66W certificate?
A 66W certificate is named after section 66W of the Conveyancing Act 1919. It is the formal way to waive your cooling-off period. Your own solicitor or licensed conveyancer signs it to confirm they have explained what you are giving up. It cannot be signed by the seller's conveyancer.
Once a 66W certificate is given, there is no cooling-off period. If you then fail to complete the purchase, you could lose your deposit and face further costs.
In a competitive market, waiving cooling off can make your offer more attractive. It can also be risky if you have not done your checks first.
Before you waive cooling off or bid at auction
Make sure you are ready to be fully committed. In particular:
have your contract reviewed by a licensed conveyancer, including special conditions, the title, easements and the planning certificate
check your finance is approved, not just pre-approved
get your building and pest inspection done (and a strata report for units)
know your deposit amount and when it is due
Get your contract reviewed before you sign
A My Property Kit contract review is $99, with same day turnaround on request. A licensed NSW conveyancer checks every clause, explains it in plain English and flags anything worth negotiating, so you know where you stand before you exchange, bid or waive your cooling-off rights.
Get your contract reviewed or call us on (02) 7241 7773.
This article is general information only and is not legal advice. Information is based on NSW Government guidance on contracts and deposits when buying property, current as at October 2026. Speak to a licensed conveyancer or solicitor about your situation.
