subject: What Is The Cooling-off Period? [print this page] The cooling-off period is, probably, the most important five days of the conveyancing process. Although most people wait it out and ultimately buy the property that is involved, some people do opt to withdraw. Having the option to terminate your contract is important. Learn more about the process below.
When Does the Cooling-Off Period Occur?
There's often a lot of confusion about when the cooling-off period occurs. A skilled real estate professional will be able to walk you through the entire process. It will help, though, if the buyer knows that a cooling-off period starts right after the contracts have been exchanged. It continues until 5pm on the fifth business day. Make sure to be clear about when your specific cooling-off period starts and end so that there are no mistakes.
What is the Purpose of the Cooling-Off Period?
Generally, a cooling-off period was created for the purpose of giving buyers one last chance to make sure that they have chosen the right property, financing and investment. Sometimes, in the heat of the moment, people settle on arrangements that aren't really sensible. The five-day cooling-off period allows a buyer to reflect on each detail of the transaction to ensure that he really wants to go through with it. Most people get through the cooling-off period and and continue on with their purchase.
What Happens if You Terminate the Contract During the Cooling-Off Period?
As a buyer, you always have the right to terminate your contract during the cooling-off period. This is the normal way in which a real estate transaction would proceed. If you do decide to withdraw from the deal, though, you will have to pay a penalty that equals 0.25% of the purchase price. For every $100,000, then, you would have to pay $250. Still, that's a small price to pay if you decide to withdraw for a very good reason. Just having the option is enough to reduce a lot of anxiety.
Can You Waive the Cooling-Off Period?
Sometimes, buyers elect to waive the cooling-off period altogether. This often occurs in instances where a property is being hotly pursued by several potential buyers; in order to secure the property, some buyers will waive their rights to cooling-off periods. Waiving that right is easy and can be accomplished by having a solicitor a 66W certificate. Your real estate agent or solicitor will know precisely how to handle such an arrangement, should you decide to go that route. As you can see, the cooling-off period is a practical and worthwhile part of the conveyancing process.
