The Purpose Of The Cooling-Off Period

By: EvaJudge | Posted: 29th November 2010

If you have any doubts whatsoever about the house or property that you are buying, it is important to address them during the cooling-off period. By the time the cooling-off period expires, you will have committed yourself to going forward with the transaction. If you decide the property's not for you, though, you can terminate the deal during that window of time.



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. However, it helps to know that this period commences as soon as the contracts are 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?



In general, this time frame is designed to give buyers one last opportunity to make sure that the property and financing that they've selected are right for them. Sometimes, in the heat of the moment, people settle on arrangements that aren't really sensible. With the five-day cooling-off period, the buyer will find a chance to review every detail of the transaction and will be able to ascertain if he wants to pursue acquisition of the property. 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. Should you choose to go this route, your real estate agent or solicitor will know exactly how such kind of arrangement can be handled. As you can see, the cooling-off period is a practical and worthwhile part of the conveyancing process.





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Most people who buy real estate Campbelltown or real estate Macarthur wait out the cooling-off period and ultimately buy the property. However, some of them decide that the deal just isn't right for them. It's nice having the option to withdraw, and the cooling-off period affords you that option. However, getting professional help from real estate firms such as Starr Partners Real Estate http://www.starrpartnerscampbelltown.com.au/ will make this task easier for you.
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Tags: good reason, doubts, confusion, heat of the moment, anxiety, business day, time frame, cooling off period, real estate transaction, contracts, acquisition, window of time