When you buy residential property in NSW by private treaty, you usually get a cooling off period of five business days after exchange, or ten business days for off the plan contracts. It ends at 5pm on the last day, and if you pull out you forfeit 0.25% of the purchase price.
There is no cooling off period at auction. It can also be waived with a section 66W certificate, which is why vendors in competitive markets often ask for one. This guide explains the rules, the cost and exactly what to do inside those five days.
The cooling off period at a glance
| Situation | Cooling off period | Cost to pull out |
|---|---|---|
| Residential purchase by private treaty | 5 business days | 0.25% of the price |
| Off the plan residential purchase | 10 business days | 0.25% of the price |
| Bought at public auction | None | Not available |
| Contract made the same day the property passed in at auction | None | Not available |
| A section 66W certificate given at or before exchange | None (waived) | Not available |
| Contract made by exercising an option | None | Not available |
| Seller | No cooling off right | Not applicable |
The cooling off right belongs to the buyer only, under section 66S of the Conveyancing Act 1919 (NSW). A seller cannot cool off.
When the cooling off period starts and ends
The period starts the day after the contract is made (the date of exchange) and ends at 5pm on the fifth business day. Business days exclude Saturdays, Sundays and NSW public holidays.
Worked example: contracts exchange on Wednesday 9 June 2027.
| Day | Date | Counts? |
|---|---|---|
| Exchange day | Wednesday 9 June | No, the clock starts tomorrow |
| Business day 1 | Thursday 10 June | Yes |
| Business day 2 | Friday 11 June | Yes |
| Weekend | 12 and 13 June | No |
| King's Birthday public holiday | Monday 14 June | No |
| Business day 3 | Tuesday 15 June | Yes |
| Business day 4 | Wednesday 16 June | Yes |
| Business day 5 | Thursday 17 June | Ends at 5pm |
A public holiday adds a day you might not plan for. Around Easter and Christmas the gap can be bigger, so check the date in writing with your conveyancer.
What it costs to pull out
If you rescind during the cooling off period, you forfeit 0.25% of the purchase price to the seller. The rest of your deposit comes back to you.
| Purchase price | Amount forfeited |
|---|---|
| $700,000 | $1,750 |
| $900,000 | $2,250 |
| $1,100,000 | $2,750 |
| $1,500,000 | $3,750 |
You do not need a reason and you do not need the seller's agreement. Your conveyancer serves a written notice of rescission on the seller's agent or conveyancer before 5pm on the last day.
Most buyers pay only the 0.25% on exchange as a holding deposit, with the balance of the 10% due when the cooling off period ends. If you do not pull out, you are bound to the contract from 5pm on the final day.
No cooling off at auction
If you buy at public auction, the contract is binding the moment the hammer falls. There is no cooling off period, no finance condition and no time for inspections.
The same rule applies if the property passes in at auction and you sign a contract later that day. If you sign the next day, the normal five business days usually apply, unless you have given a 66W certificate.
For auctions in Bankstown, Padstow and Revesby, that means the work happens before auction day: contract review, finance approval in writing, and building and pest or strata inspections already done.
Section 66W certificates: waiving the cooling off period
A section 66W certificate waives your cooling off period, so the contract binds you on exchange. Sellers ask for one when there are several buyers or the agent wants to lock in a sale before auction.
The certificate must be signed by a solicitor or licensed conveyancer acting for you, not for the seller. It confirms you have been told what you are giving up.
Only sign a 66W when:
- Your finance is unconditionally approved, not pre-approved
- Building and pest inspections (or the strata report) are done and you have read them
- Your conveyancer has reviewed the contract and special conditions
- You are ready to be bound with no way out except losing your deposit
A 66W is sometimes the right call in a competitive market. It should never be a default.
Can the cooling off period be extended or shortened?
Yes, by agreement. A buyer can ask for a 10 business day cooling off period on a standard contract, and many sellers agree, especially when finance or strata reports need more time. The extension must be written into the contract or agreed in writing before the period ends.
The period can be shortened, but only by giving a 66W certificate. Asking for an extension is often smarter than signing a waiver.
What to do inside your cooling off period
Five business days goes quickly. Use them in this order:
- Day 1: send the contract to your conveyancer if it was not reviewed before exchange. Confirm the exact end date and time in writing.
- Day 1 to 2: book building and pest inspections for a house, or order the strata report for an apartment or townhouse.
- Day 1 to 3: ask your lender or broker to move pre-approval to formal, unconditional approval.
- Day 3 to 4: review the inspection report and any special conditions with your conveyancer. Raise anything you want changed.
- Day 5, before midday: decide. If you are pulling out, instruct your conveyancer early so the notice is served well before 5pm.
Common cooling off mistakes
- Thinking it ends at midnight. It ends at 5pm.
- Counting the exchange day. The count starts the next day.
- Assuming it applies at auction. It doesn't.
- Signing a 66W on pre-approval. Pre-approval is not a loan.
- Leaving the notice until 4:55pm. Instruct early; the notice must be properly served in time.
The revised cooling off notice (from 1 June 2026)
Since 1 June 2026, every NSW residential contract and residential option agreement must include a revised form of the cooling off notice, following the Conveyancing and Real Property Amendment Act 2025 (NSW). Your cooling off rights on an ordinary purchase have not changed, but contracts now use the 2026 edition of the standard contract. See what changed.
Getting help
City Peak Conveyancing reviews contracts before you exchange, tells you the exact date your cooling off period ends, and prepares 66W certificates only after explaining what you are giving up. We act for buyers across Canterbury-Bankstown and NSW.
See contract review and our guide to conveyancing fees in NSW.
Common questions
FAQs
How long is the cooling off period in NSW?
Five business days for most residential purchases by private treaty, and ten business days for off the plan contracts. It ends at 5pm on the last business day.
How much does it cost to cool off in NSW?
0.25% of the purchase price, which is $2,500 on a $1 million property. The rest of your deposit is refunded.
Is there a cooling off period at auction in NSW?
No. A contract made at auction, or on the same day the property passed in, has no cooling off period.
Does the cooling off period include weekends?
No. Saturdays, Sundays and NSW public holidays are not counted.
Can a seller cool off in NSW?
No. Only the buyer has a cooling off right.
Who can sign a 66W certificate?
A solicitor or licensed conveyancer acting for the buyer, who is independent of the seller.
Sources: Conveyancing Act 1919 (NSW), Division 8, NSW Government: buying property off the plan.
City Peak Conveyancing acts on NSW property only. This page is general information, not advice about your circumstances.