In NSW, a buyer of residential property by private treaty has five business days after exchange to withdraw from the contract, at a cost of 0.25 per cent of the purchase price, which the vendor keeps from the deposit. Off-the-plan purchases have 10 business days.

There is no cooling-off period when you buy at auction, and the right can be waived or shortened with a certificate from your solicitor or conveyancer under section 66W of the Conveyancing Act 1919.

How long is the cooling-off period in NSW?

NSW cooling-off at a glance
Purchase Cooling-off period
Residential property, private treaty 5 business days from exchange
Off the plan 10 business days from exchange
Bought at auction None
Contract exchanged with a 66W certificate None, or the shortened period stated

The period starts on the day of exchange and ends at 5pm on the last business day. Weekends and public holidays do not count. The contract can provide a longer period, and the vendor can extend it in writing, but it cannot be shorter than the statute allows unless a 66W certificate is given.

What does it cost to withdraw?

0.25 per cent of the purchase price, which the vendor keeps from the deposit before returning the balance: $2,000 on an $800,000 home and $3,000 on $1.2 million. Written notice must reach the vendor or their solicitor before the deadline, so involve your conveyancer the moment you think you may withdraw.

When does cooling-off not apply?

  • Auctions. Buying at auction, or by contract exchanged on the same day as the property was passed in at auction, carries no cooling-off right.
  • A 66W certificate. Your solicitor or conveyancer certifies that you understand the effect of giving up the right. Buyers do this to make an offer more attractive or to secure a property against competition.
  • Some property types. The rules are aimed at residential property; certain commercial, rural and large-lot purchases fall outside them. Your conveyancer will confirm whether the period applies to your contract.

What is the cooling-off period actually for?

It is a short window to finish checks you could not complete before exchange, not a free option. Buyers use it to:

  • Finish the building and pest or strata checks if they were not done before exchange.
  • Get formal finance approval where pre-approval was in place. The lender values the property and confirms the loan, and if the valuation comes in short you still have a way out. The low valuation guide covers what to do.
  • Confirm costs such as stamp duty and insurance.

Five business days is tight for formal approval, so the loan work should be largely done before exchange. That is why pre-approval comes first.

Should you waive cooling-off with a 66W certificate?

Only when everything is already checked: the contract reviewed, inspections done, your loan approved or very close, and the deposit ready. Waiving makes your offer stronger, especially against other buyers, but you lose the exit, so if a single item is outstanding, keep the cooling-off period and use it.

Is there a cooling-off period at auction?

Because auctions have no cooling-off, everything has to be done before auction day: the contract review, inspections, finance and the deposit. Winning at auction means exchanging on the spot, unconditionally. The article on pre-approval before an auction explains how to prepare, and the questions before making an offer guide lists what to check.

A worked timeline

Contracts are exchanged on a Thursday. The five business days are Friday, Monday, Tuesday, Wednesday and Thursday, so the cooling-off period ends at 5pm on the following Thursday, assuming no public holidays. To withdraw, written notice must reach the vendor or the vendor’s solicitor before that time. If the price was $900,000, withdrawing costs $2,250, kept from the deposit.

What should you do during the five days?

  1. Day one: confirm the deposit has been paid and receipted, and send the signed contract to your broker for the lender.
  2. Days one and two: book the building and pest inspection if it was not done before exchange, and order the strata report for a unit.
  3. Days two to four: your broker submits the contract for formal approval; the lender orders a valuation.
  4. Before the deadline: review the inspection, the valuation if it has come back, and the duty and costs. If something is wrong, talk to your conveyancer before 5pm on the last day.

If the lender’s valuation will not be back in time, decide whether you are comfortable proceeding without it. That decision is easier when pre-approval was done thoroughly.

What does withdrawing cost at common prices?

The 0.25 per cent forfeited if you rescind during cooling-off
Purchase price Amount forfeited
$600,000 $1,500
$800,000 $2,000
$1,000,000 $2,500
$1,200,000 $3,000
$1,500,000 $3,750

The amount comes out of the deposit you paid at exchange, and the rest is returned. It is small next to the cost of completing a purchase that is wrong for you, which is the point of the period.

How do you rescind properly?

  1. Call your conveyancer or solicitor straight away. They prepare the notice and know the deadline on your contract.
  2. Put it in writing. The notice must be in writing and signed by you or your solicitor.
  3. Serve it in time. It must reach the vendor or the vendor’s solicitor before 5pm on the last business day of the period. A notice that arrives at 5.05pm is too late.
  4. Keep proof of delivery. Email with a read receipt or hand delivery with a signed acknowledgement avoids an argument later.
  5. Confirm the refund. The deposit, less the 0.25 per cent, is returned through the agent’s or solicitor’s trust account.

How does cooling-off affect your finance?

Five business days is not long for a lender to value the property and issue formal approval. The buyers who use the period well are the ones whose finance was nearly finished before they exchanged:

  • A fully assessed pre-approval, so formal approval is a check of the property rather than a fresh assessment of you. See pre-approval.
  • The contract with your broker on the day of exchange, so the valuation is ordered immediately.
  • A plan if the valuation comes in low: more deposit, a different lender, or withdrawing within the period. The low valuation guide covers the options.

If formal approval cannot arrive inside five business days, decide before exchange whether you are comfortable proceeding without it, or ask your conveyancer about a longer cooling-off period or a finance condition in the contract.

How long is cooling-off for off-the-plan?

Buying off the plan in NSW, the cooling-off period is 10 business days rather than five, and it starts on the day contracts are exchanged. The contract comes with a disclosure statement and draft plans describing what you are buying, and the longer period gives you and your conveyancer time to read them properly. Use it to:

  • Check the disclosure statement against what the agent told you: the lot, the parking, the storage and the finishes.
  • Confirm the sunset date and what happens if the build runs late.
  • Ask your broker whether lenders will finance the building and the unit size, before the deadline.
  • Plan how the deposit is held, and whether a deposit bond is acceptable.

The off-the-plan home loans guide covers valuation at completion and the finance timeline.

Questions people ask

Does the cooling-off period include weekends?

No. It runs for business days, ending at 5pm on the last one, so exchanging on a Thursday gives you until 5pm the following Thursday, public holidays aside.

Can the vendor withdraw during cooling-off?

No. The cooling-off right belongs to the buyer. Once contracts are exchanged the vendor is bound.

Can I use cooling-off if my finance falls through?

Yes, if the period has not ended. That is one reason to have formal approval progressing before exchange, so you know where the loan stands while the window is still open.

Charles Touma times the loan work around exchange so buyers know where finance stands before the cooling-off window closes. If you are about to exchange, a short call will confirm whether the loan is ready. General information only, not legal advice; confirm the cooling-off terms of your contract with your conveyancer or solicitor. Source: sections 66S to 66W of the Conveyancing Act 1919 (NSW), checked 14 October 2026.

General information only, not credit, legal or tax advice. Your situation is assessed properly before any recommendation. Government scheme details change; figures are current at the time of writing.