The cooling-off period in NSW: how it works for property buyers
Key facts
| Fact | Detail | Source |
|---|---|---|
| Cooling-off period | 5 business days, ending at 5pm on the fifth business day after the day of exchange | Contracts and deposits when buying property in NSW |
| Cost of pulling out | 0.25% of the purchase price ($250 for every $100,000), paid to the vendor | Contracts and deposits when buying property in NSW |
| Off-the-plan contracts | 10 business days, ending at 5pm on the tenth business day after the contract is made | New off-the-plan laws now in force |
| Auctions | No cooling-off at auction, or for contracts exchanged on auction day after the property is passed in | Buying property at an auction |
| Waiving or shortening it | Only with a section 66W certificate from the buyer's solicitor or licensed conveyancer | Contracts and deposits when buying property in NSW |
| Extending it | Possible by agreement between the buyer and the vendor | Contracts and deposits when buying property in NSW |
| New cooling-off notice | Mandatory for residential contracts and options exchanged on or after 1 June 2026 | Guidance for practitioners |
How long is the cooling-off period in NSW?
The cooling-off period for a residential property in NSW is 5 business days. It starts when contracts are exchanged and ends at 5pm on the fifth business day after the day of exchange.
Business days do not include weekends or NSW public and bank holidays. For example, if you exchange on a Monday and no public holiday falls between then and the following Monday (inclusive), cooling-off ends at 5pm the following Monday.
Cooling-off is a right for the buyer, not the seller.
If you are buying a residential lot off the plan, for example a new apartment or a land lot in a growth area such as Box Hill, the period is generally longer: 10 business days, ending at 5pm on the tenth business day after the contract is made. Have your solicitor or conveyancer confirm that your contract is a residential off-the-plan contract.
Sources: Contracts and deposits when buying property in NSW; Conveyancing Act 1919 (NSW), section 66S: Cooling off period; Conveyancing Act 1919 (NSW), section 66U: Cooling off rights; New off-the-plan laws now in force
What does it cost to cool off?
If you pull out during the cooling-off period, you must pay the vendor 0.25% of the purchase price. That works out to $250 for every $100,000.
The vendor can take this amount from the deposit you paid, and you are entitled to a refund of any balance. To cool off, you must give the vendor written notice before the period ends.
Your solicitor or conveyancer usually prepares and serves the notice, so it is given correctly and on time.
| Purchase price | Amount payable |
|---|---|
| $600,000 | $1,500 |
| $800,000 | $2,000 |
| $1,000,000 | $2,500 |
| $1,500,000 | $3,750 |
Sources: Contracts and deposits when buying property in NSW; Conveyancing Act 1919 (NSW), section 66V: Consequences of rescission; Conveyancing Act 1919 (NSW), section 66U: Cooling off rights
When is there no cooling-off period?
There is no cooling-off period if you buy at auction. There is also none if contracts are exchanged on the day of the auction, after the property is passed in.
If you are buying where auctions are common, such as Castle Hill and Baulkham Hills, check the contract before auction day rather than counting on cooling-off afterwards. The situations with no cooling-off are:
- You buy the property at a public auction.
- You exchange contracts on auction day after the property is passed in.
- Your solicitor or licensed conveyancer gives the vendor a section 66W certificate at or before exchange, which removes the cooling-off period (or allows a shorter one, if that was agreed).
- The contract is made by exercising an option to purchase (the option itself may have its own cooling-off rules).
Sources: Buying property at an auction; Conveyancing Act 1919 (NSW), section 66T: No cooling off period in certain cases
Can the cooling-off period be waived, shortened or extended?
Yes. The cooling-off period can be waived, or shortened by agreement, only if your solicitor or licensed conveyancer gives the vendor a certificate under section 66W of the Conveyancing Act 1919 (NSW).
Before giving the certificate, the practitioner must explain to you the effect of the contract, the nature of the certificate and the effect of giving it. If cooling-off is waived, the contract binds you from exchange.
The period can also be extended by agreement with the vendor, for example to allow more time for finance approval or a strata report. Put any extension in writing before the original period ends.
Vendors and agents often ask for a 66W certificate when several buyers are interested or a buyer wants to exchange before an auction. Our section 66W certificate guide explains the checks to make first.
Sources: Contracts and deposits when buying property in NSW; Conveyancing Act 1919 (NSW), section 66S: Cooling off period; Conveyancing Act 1919 (NSW), section 66W: Certificates
How much deposit do you pay during cooling-off?
If the vendor agrees, you can pay 0.25% of the price on exchange and the balance of the deposit before the cooling-off period ends. A deposit of 10% is usual, so the balance is often 9.75%, but a lower deposit such as 5% can be agreed.
The deposit is held by a stakeholder, such as the agent or a solicitor, in a trust or controlled money account. Check the contract for the amount and the date the balance is due, and have the funds ready early.
Sources: Making an offer on a property; Contracts and deposits when buying property in NSW
What should you finish before cooling-off ends?
Use the cooling-off period to finish any checks you could not complete before exchange. Once it ends, you can no longer rely on cooling-off to get out of the contract.
- Finance: confirm your loan has formal approval and that your lender is satisfied with the property.
- Building and pest inspection: these reports are not compulsory in NSW, but they are recommended. Ask the agent about any pre-purchase reports it knows of, and whether you can buy a copy.
- Strata report: for a unit or townhouse in a strata scheme, arrange a strata report on the owners corporation's records and the section 184 strata information certificate.
- Contract questions: raise anything unclear in the special conditions, the inclusions or the settlement date with your solicitor or conveyancer.
- Deposit balance: if you paid 0.25% on exchange, have the balance ready by the due date.
Sources: Pre-purchase inspection reports when buying a home; Buying a strata property; Making an offer on a property
What changed with the new cooling-off notice in 2026?
Residential contracts and options exchanged on or after 1 June 2026 must include the new prescribed cooling-off notice. The Conveyancing and Real Property Amendment Act 2025 introduced the new notice from 15 August 2025, and the old form was allowed only until 31 May 2026.
The Law Society of NSW and REINSW Contract for the sale and purchase of land 2026 edition contains the revised notice. It replaced the 2022 edition, which was withdrawn from sale on 13 March 2026.
If you are handed a contract on an older form, ask your solicitor or conveyancer to check it before you sign.
Sources: Guidance for practitioners; Summary of main changes made in the Contract for the sale and purchase of land 2026 edition
Does cooling-off apply to an option to purchase?
Options to purchase residential property have their own cooling-off rules, so get advice before you sign one. Under the Conveyancing Act 1919 (NSW), the buyer under a residential option may rescind the option before 5pm on the fifth business day after the day on which the option was granted, forfeiting 0.25% of the purchase price (sections 66ZB to 66ZE).
The Conveyancing and Real Property Amendment Act 2025 extended the disclosure and cooling-off rules for residential options to 'put' options, which can compel a buyer to purchase. A contract made by exercising an option generally has no separate cooling-off period.
Sources: Conveyancing Act 1919 (NSW), section 66ZB: Cooling off period (options); Conveyancing Act 1919 (NSW), section 66ZE: Consequences of rescission (options); Guidance for practitioners; Conveyancing Act 1919 (NSW), section 66T: No cooling off period in certain cases
What happens after the cooling-off period ends?
Once the cooling-off period ends, you can no longer rescind under it, and both sides move towards settlement. Under the standard contract, completion is due on the 42nd day after the contract date unless the parties agree otherwise.
NSW Government guidance says settlement generally takes place around 6 weeks after exchange. If your finance or circumstances change after cooling-off ends, tell your solicitor or conveyancer straight away.
Sources: Contract for the sale and purchase of land 2026 edition (sample); Exchanging contracts and settlement when buying a home
How a conveyancing solicitor can help
Baulkham Hills Conveyancing can review the contract before you exchange, explain your cooling-off rights and the effect of a section 66W certificate, and serve a rescission notice if you decide to pull out. Send us the contract or call (02) 9000 1408 to talk about your purchase.
Frequently asked questions
Is the cooling-off period 5 days or 5 business days in NSW?
It is 5 business days, not 5 calendar days. The period starts on exchange and ends at 5pm on the fifth business day after the day of exchange. Weekends and NSW public and bank holidays are not counted when you work out the end date.
How much do you lose if you pull out during cooling-off in NSW?
You must pay the vendor 0.25% of the purchase price, which is $250 for every $100,000. On a $1,000,000 purchase, that is $2,500. The vendor can take this from your deposit, and you are entitled to a refund of any balance.
How do I cool off on a property contract in NSW?
Give the vendor written notice that you are rescinding before 5pm on the fifth business day after exchange (the tenth for a residential off-the-plan contract). Your solicitor or conveyancer usually prepares and serves it. You must pay the vendor 0.25% of the price, which the vendor can take from your deposit, and you are entitled to a refund of any balance.
Can the seller pull out during the cooling-off period?
No. The statutory cooling-off right in the Conveyancing Act 1919 (NSW) belongs to the buyer, not the seller. Once contracts are exchanged, the seller is bound by the contract's terms. If a seller tries to back out after exchange, get legal advice promptly.
What is the cooling-off period for off-the-plan property in NSW?
Residential off-the-plan contracts have a 10 business day cooling-off period, ending at 5pm on the tenth business day after the contract is made. A buyer who rescinds forfeits 0.25% of the purchase price, the same as for an existing home.
Can the cooling-off period be extended?
Yes, the buyer and the vendor can agree to extend it, for example while finance approval or a strata report is finalised. Waiving or shortening it is different: that only takes effect if the buyer's solicitor or licensed conveyancer gives the vendor a section 66W certificate.
Does the cooling-off period start when I sign the contract?
No. Signing your copy does not start it. The cooling-off period starts when contracts are exchanged, which is usually when the buyer's and seller's signed copies are swapped, and it ends at 5pm on the fifth business day after the day of exchange.
Sources
- Contracts and deposits when buying property in NSW – NSW Government (NSW Fair Trading)
- Buying property at an auction – NSW Government (NSW Fair Trading)
- Making an offer on a property – NSW Government (NSW Fair Trading)
- Buying property off the plan – NSW Government
- New off-the-plan laws now in force – NSW Registrar General
- Guidance for practitioners – NSW Registrar General
- Summary of main changes made in the Contract for the sale and purchase of land 2026 edition – The Law Society of NSW
- Contract for the sale and purchase of land 2026 edition (sample) – The Law Society of NSW
- Exchanging contracts and settlement when buying a home – NSW Government
- Pre-purchase inspection reports when buying a home – NSW Government (NSW Fair Trading)
- Buying a strata property – NSW Government (NSW Fair Trading)
- Conveyancing Act 1919 (NSW), section 66T: No cooling off period in certain cases – AustLII (NSW Consolidated Acts)
- Conveyancing Act 1919 (NSW), section 66S: Cooling off period – AustLII (NSW Consolidated Acts)
- Conveyancing Act 1919 (NSW), section 66U: Cooling off rights – AustLII (NSW Consolidated Acts)
- Conveyancing Act 1919 (NSW), section 66V: Consequences of rescission – AustLII (NSW Consolidated Acts)
- Conveyancing Act 1919 (NSW), section 66W: Certificates – AustLII (NSW Consolidated Acts)
- Conveyancing Act 1919 (NSW), section 66ZB: Cooling off period (options) – AustLII (NSW Consolidated Acts)
- Conveyancing Act 1919 (NSW), section 66ZE: Consequences of rescission (options) – AustLII (NSW Consolidated Acts)
Related pages
Related services
Related guides
- Section 66W certificates in NSW: what buyers give up and what to check first
- Buying property at auction in NSW: what to check before you bid
- Buying off the plan in NSW: your rights before and after you sign
- Strata reports in NSW: what to check before buying a unit or townhouse
- First home buyers in NSW: duty exemption, grants and eligibility
Local pages
This guide is general information about New South Wales law as at 4 October 2026, not legal advice for your circumstances. Laws, thresholds and government fees change; check the official sources listed and contact us for advice about your matter.
Talk to us about your matter: call (02) 9000 1408, email info@baulkhamhillsconveyancing.com.au or request a quote online.