What’s a Cooling-Off Period (And Why Should You Care)?
You’ve found the house, made an offer, and signed the contract… but then your mind starts racing:
Did I rush into it? What if something’s not quite right?
That’s exactly what the cooling-off period is for.
What is a cooling-off period?
In NSW, residential buyers (who purchase by private treaty) get a 5 business day window after signing the contract where they can change their mind.
So if you suddenly realise the property isn’t quite right - or your finance falls through - you’re not completely locked in just yet.
But does it cost anything to back out?
Yes.
If you pull out during the cooling-off period, you’ll usually forfeit 0.25% of the purchase price. On a $600,000 home, that’s $1,500. It’s not a huge hit, but it’s enough to make sure buyers don’t treat contracts like window shopping.
What should you do during those 5 days?
This little window isn’t just a safety net - it’s your chance to get things done fast:
Book your building and pest inspections
Get your loan approval finalised
Have your conveyancer review the contract
Ask questions - about zoning, easements, strata, etc.
Basically, it’s your final chance to walk away if something doesn’t stack up.
When does the cooling-off period not apply?
If you buy at auction
If you waive the cooling-off period (which some buyers do to make their offer more attractive)
Once it’s gone - it’s gone. So be sure you’re ready to commit before you give it up.
Got a question about the cooling-off period?
Reach out - whether you're house-hunting in Dubbo, Narromine or Wellington, we can help you understand your options before you sign on the dotted line.
No pressure. No silly questions. Just honest answers to help you move forward with confidence.