Subject to some exceptions, when buying residential property in NSW, you have a statutory 5-business day cooling off period.   In other words, within 5 business days of contracts being exchanged, you can elect not to proceed with the purchase for any reason whatsoever.  If you exercise this right, the Vendor will be entitled to retain 0.25% of the purchase price, but any other money paid by you will be refunded and the contract will be at an end.

Sometimes the Vendor will insist that you waive these cooling-off rights.  This is common when:

• The property is scheduled to be sold at auction.  At an auction you have no-cooling off rights so a Vendor who is willing to sell the property to you before auction, would expect that you purchase the property ‘on auction conditions’, that is, without a cooling off period; or

• Where there is very competitive buying market, typically in city locations.

Sometimes you might volunteer to waive your cooling-off period in an attempt to make your offer more attractive to a Vendor.

Whatever the reason, you will need to provide a 66W Certificate in order to waive your cooling off period.  

The 66W Certificate has prescribed terms and is signed by a Conveyancer or Solicitor who certifies that, amongst other things, they have explained the significance of waiving your cooling-off rights to you.  

The significance of waiving your cooling off rights is that you are immediately and unconditionally bound to the contract.  If you then change your mind about proceeding or you default the contract, the Vendor will be entitled to terminate the contract and claim or retain the full deposit.  The Vendor may also have claims against you for any shortfall on resale of the property or damages.

Before signing a 66W Certificate, your conveyancer/solicitor should discuss with you the key items that you should consider before you agree to enter into a contract without a cooling off period.  

These typically are:

• The terms of the contract of sale.

• The condition of the property you are buying, or the status of the Owners Corporation when buying Strata.

• Your finance arrangements.

• Your residency status.

Once you conveyancer/solicitor is comfortable that you have done your due diligence and understand the implications of entering into an unconditional sale they will sign the 66W Certificate.  Typically, the 66W Certificate will then be forwarded with your signed contract and evidence of payment of the deposit to the Vendor’s Solicitor or Agent for exchange.

This information is intended to be general in nature and does not take into account your particular situation, objectives or needs. Before acting on any information, you should seek professional legal advice.