Allowing Your Real Estate Agent to Exchange Contracts under a Cooling Off Period.

In a hot real estate market, as a Purchaser you have the option to exchange Contracts under a 5 business day cooling off period in order to secure the property for yourself and avoid being gazumped, during this period you can carry out your due diligence. If you decide not to proceed during the 5 business day cooling off period you will forfeit to the Vendor 0.25% of the purchase price. In some instances the cooling off period can be extended to allow more time for due diligence and unconditional finance approvals to come through.

So if you find the house of your dreams and you don’t want to risk losing it over the weekend then this is an option to consider.

If you would like to know more about how this process works or have any other conveyancing questions, please do not hesitate to contact Therese Ryan of our office on ph: 02 6699 3522.

See this article from Property Observer on the topic of exchanging contracts under a cooling off period.