How to Cool Off!
Today’s newsletter has nothing to do with our cooler mornings and evenings of late, but instead focuses on a key aspect of buying property in Sydney—one that often trips up many buyers.
How exactly do cooling off periods work, and what is a 66W certificate? When do you need one? Understanding this crucial part of the buying process will put you in a strong position when you find a property you love.
The Default Position
Under NSW law, the default position is:
If a property is sold at auction, there is no cooling off period.
If a property is sold via private treaty (i.e., not at auction), the buyer has a five business day cooling off period and must pay a non-refundable 0.25% deposit.
Auctions
Auctions are straightforward. The property is sold unconditionally, so you must have completed all your due diligence before auction day.
If you discover after the auction that the house has termite damage or the neighbouring block is about to be redeveloped—unfortunately, it’s too late.
Private Treaty – On-Market Properties
For on-market properties, whether a cooling off period is available often depends on how long the property has been listed.
If it’s been on the market for less than four to five weeks, agents will usually require you to waive your cooling off rights. In this case, your solicitor signs a 66W certificate on your behalf.
Similar to an auction, you’ll need to complete your due diligence before signing the contract.
If the property has been listed for some time, there may be scope to exchange with a cooling off period—but that doesn’t necessarily mean you should. More on that below.
Private Treaty – Off-Market and Pre-Market Properties
Timing is everything. In these cases, you might be able to negotiate a cooling off period. But if you don’t need it—don’t use it.
Should You Use a Cooling Off Period if You Can?
My general advice is no. Do everything you can to be ready to make an unconditional offer and provide a 66W certificate with your signed contract.
This means:
Having unconditional finance from your lender
Completing building & pest / strata inspections and understanding the reports
Researching neighbouring properties, developments, and zoning
Speaking to Council if you're planning renovations
Getting quotes from tradespeople for any work you intend to do
Ensuring your solicitor is comfortable with the contract and has advised you accordingly
Why Waive the Cooling Off Period?
It strengthens your offer—you’re removing uncertainty for the seller that you might pull out or try to negotiate later.
You avoid losing 0.25% of the deposit if you discover something during the cooling off period that makes you walk away.
When Should You Never Waive a Cooling Off Period?
If your finance hasn’t been approved and you need a loan to complete the purchase.
If you haven’t been able to complete your due diligence. Sometimes things move quickly, but if someone else is ready to go unconditional and you haven’t even done a building inspection—let it go.
The Sydney market is highly competitive, and waiving a cooling off period can be your advantage.
If you know someone currently looking to buy, feel free to forward them this newsletter.
