Updated 4 November 2026
What Property Buyers Need to Know About the Contract for Sale #24: What are the implications of a cooling-off period waiver?
Explore CM Law’s 50 most asked buyers’ questions about a standard contract for sale in NSW.
Waiving cooling-off rights removes an important opportunity to reconsider a residential purchase. Before agreeing, understand the contract, investigate the property and confirm how you will fund settlement. A certificate can make your offer more attractive to a seller, but the financial risk of proceeding belongs to you.
1. What does waiving the cooling-off period mean?
Waiving the cooling-off period removes the statutory right to withdraw from an eligible residential sale during that period by following the cooling-off procedure. It does not approve the building, secure your loan or remove every other legal remedy. The decision should follow advice about the actual contract and outstanding risks.
The Conveyancing Act 1919 provides this protection for buyers of qualifying residential property. It is not a seller’s cancellation right or a rule covering every land transaction. Check that the statutory definition and any exceptions fit your purchase.
2. How long is the usual cooling-off period?
The usual period starts when the contract is made, normally at exchange, and ends at 5 pm on the fifth business day after that day. For an off-the-plan contract, it ordinarily ends on the tenth business day. These periods are subject to exceptions and valid variations.
Do not count exchange day as day one. Exclude Saturdays, Sundays and statewide public or bank holidays. Have your solicitor confirm the exact deadline in Sydney time; signing one counterpart or receiving an emailed copy may not establish the exchange date.
3. How do you use an available cooling-off right?
A buyer must serve a properly signed written notice of rescission within the available period and before completion. Telling the agent you are concerned or requesting more time is not enough. Your solicitor should check the required signature, recipient and service method and arrange delivery before the deadline expires.
Keep evidence of service and the exchanged contract. Where there are several buyers, the signing requirements need particular attention. The NSW contracts and deposits guide explains the general process, but your own deadline and documents control the immediate decision.
4. What does cooling-off rescission cost?
Using a valid ordinary cooling-off right generally costs 0.25% of the purchase price. This amount is usually taken from the deposit, with the balance returned. It is not 0.25% of the deposit. A smaller deposit does not eliminate liability for any shortfall in the statutory amount.
For example, 0.25% of a $1 million purchase is $2,500. Inspection and professional fees already incurred may also remain payable. This limited exit mechanism does not continue after a valid waiver or expiry of the period.
5. Who provides a section 66W certificate?
A section 66W certificate is signed by an eligible solicitor, barrister or licensed conveyancer. It identifies its purpose and confirms explanation of the contract, the certificate and the consequences of giving it. The seller’s solicitor or conveyancer, and relevant colleagues in the same practice or firm, are excluded.
An ordinary buyer cannot replace this professional certification by signing an agent’s waiver form. Ask for advice you understand, including what remains unchecked. The certificate records the required explanation; it is not an assurance that proceeding is financially safe.
6. When does a waiver take effect?
For the contract to have no cooling-off period from the outset, the compliant certificate must be given to the vendor, the vendor’s solicitor or agent at or before the contract is made. Preparing or signing the certificate and authorising its delivery are separate steps with important consequences.
My practical advice is to give clear written instructions about release of the certificate and exchange. If the price or special conditions change during negotiations, have your solicitor confirm the agreed terms before authorising commitment.
7. Can you shorten or extend the period instead?
Yes. Shortening requires a contractual provision or agreement and delivery of the required section 66W certificate before the variation takes effect. Extension can be provided in the contract or granted by the vendor in writing before expiry. Asking for an extension does not itself change the existing deadline.
Obtain written confirmation of the revised expiry. If finance or reports remain outstanding, discuss an extension before time runs out. The seller may refuse, so agree a decision deadline with your solicitor rather than relying on ongoing negotiations.
8. Do auction purchases have cooling-off protection?
There is no statutory cooling-off period for a purchase at public auction or a contract made on the same day after the property was offered at auction and passed in. A private sale negotiated before auction is different: the auction advertisement alone does not remove the buyer’s cooling-off rights.
Complete your auction preparations before bidding. Sellers may request a certificate for a pre-auction offer, but that request is not itself a waiver. Separate rules also apply to contracts resulting from exercised options; obtain advice on those arrangements.
9. Is loan pre-approval enough before waiving?
Pre-approval does not guarantee the lender will fund the purchase. The lender may still need to assess the property, obtain a valuation and satisfy other conditions. Before waiving, confirm the status of approval for this purchase, any funding shortfall and your ability to meet settlement and associated costs.
ASIC MoneySmart explains this distinction. A broker’s expectation is not a contractual finance condition. If finance protection is needed, your solicitor must negotiate an appropriate condition with the seller; it is not automatically included in every NSW contract.
10. Which inspections should be completed first?
Arrange suitable building and pest inspections and investigate significant findings before giving up the opportunity to reconsider. Read the scope and exclusions, including inaccessible areas. Specialist assessment may be needed for structural movement, moisture, electrical systems or other concerns that an ordinary visual inspection does not resolve.
A building report is not a guarantee against hidden defects. Obtain repair estimates where necessary and decide whether the price, budget and proposed contractual protections address the risks. Waiting for a report does not suspend a deadline.
11. What contract and strata checks matter?
Have the complete contract reviewed, including title interests, planning information, required attachments and special conditions. For strata property, investigate records, finances, proposed levies and defects. A waiver should follow an informed assessment of these matters; the presence of a lengthy contract does not mean every relevant issue has been resolved.
Use a strata records inspection where appropriate. Also check the prescribed cooling-off warning: updated wording is required for exchanges from 1 June 2026. That warning explains rights; it is a different document from the certificate used to waive them.
12. What could you lose if you cannot complete?
If you have no valid withdrawal right and default, the consequences can extend beyond losing your deposit. Depending on the contract and circumstances, the seller may terminate and claim recoverable losses, including a resale shortfall and expenses. Interest and litigation costs can increase the financial exposure further.
Paying only a small initial deposit does not necessarily cap liability. Ask your solicitor to explain the deposit clauses and default remedies before exchange. The 0.25% cooling-off amount is not a general limit on damages for breach.
13. Can you reverse a waiver or rely on another remedy?
You cannot assume a valid waiver can be undone simply because you change your mind, finance fails or an inspection is disappointing. A separate contractual or legal right may still exist, but it requires its own factual and legal basis. Obtain urgent advice before claiming cancellation or withholding settlement.
Preserve communications, the certificate and evidence of when it was delivered. Alleged pressure, misleading statements or defects require careful assessment. Waiver does not erase every remedy, but disagreement or regret alone does not establish a right to withdraw.
14. What does a real NSW waiver dispute show?
In Koh v Chhoeu [2026] NSWSC 769, the Supreme Court held that a binding $3.2 million Chatswood contract had been formed and that the buyer had waived cooling-off rights. The buyer, an experienced solicitor, had deliberately left a signed section 66W certificate with the agents for use if agreement was reached.
Pike J also found that, even without waiver, the attempted rescission on 24 June 2024 would have been late: exchange occurred on 16 June and the ordinary period would have expired on 21 June.
The final orders in Koh v Chhoeu (No 2) [2026] NSWSC 928, made on 5 August 2026, included judgment for $524,240.57, including $80,235.57 interest, and ordinary-basis costs, not quantified in the judgment. The outcome concerned failed completion and the wider contractual dispute, not a fixed penalty for signing a certificate.
15. How can CM Lawyers help you decide?
CM Lawyers can review your contract, explain cooling-off rights and assess proposed waiver or shortening arrangements against the outstanding enquiries. Our property contract review service can also identify amendments to request and deadlines to observe. Tell us promptly about the proposed exchange or auction and any unresolved finance or inspection issues.
For assistance buying a property, contact CM Lawyers on (02) 9557 9000 or at lawyers@cmlaw.com.au. My practical advice is to make the decision after understanding the risks, while there is still time to address them.
General information only, current at 4 November 2026. This article is not legal advice for your transaction. The cited decisions are real; outcomes depend on the facts, contractual terms and applicable law.
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