Under NSW law, what is the standard cooling-off period for a residential property purchase?
Correct Answer
B) 5 business days
Under the Conveyancing Act 1919 (NSW), a purchaser of residential property has a cooling-off period of five business days after the contract is made, ending at 5pm on the fifth business day. A purchaser who rescinds forfeits 0.25% of the purchase price. The period does not apply to auction sales and can be waived with a section 66W certificate from the purchaser's solicitor or conveyancer.
Why This Is the Correct Answer
The Conveyancing Act 1919 (NSW) gives a residential purchaser five business days after exchange to rescind, ending at 5pm on the fifth business day. Rescinding costs the purchaser 0.25% of the price.
Why the Other Options Are Wrong
Deep Analysis of This Agency Practice Question
Background Knowledge for Agency Practice
Memory Technique
Exam Tip for Agency Practice
Real World Application in Agency Practice
Common Mistakes to Avoid on Agency Practice Questions
Related Topics & Key Terms
Key Terms:
More Agency Practice Questions
In NSW, what happens to an agency agreement if the principal dies before the property is sold?
Priya holds an unrestricted class 2 real estate licence and wants to open her own agency as a sole trader. What does the Property and Stock Agents Act 2002 require?
Buyer Ahmed has paid an expression of interest deposit with an offer of $1.2 million (invented). Before exchange, another buyer submits a higher offer. Apart from passing the new offer to the vendor, what must the selling agent do regarding Ahmed?
In NSW, what is the maximum commission an agent may charge on a residential property sale?
An assistant agent completes 5 units of CPP41419 in one CPD year, 2 more than required. What happens to the extra 2 units?
- → A homeowner signs a sole agency agreement, then sells the house to a neighbour she found herself, with no agent involved. Is commission payable under the sole agency?
- → A NSW homeowner signs an exclusive agency agreement to sell her house at 3 pm on a Friday. There is no public holiday that weekend. When does her statutory cooling-off period for the agency agreement end?
- → An agent records the estimated selling price in a NSW residential sales agency agreement as a range with a lower figure of $900,000 (an invented example). What is the highest upper figure the range may lawfully show?
- → A buyer paid an expression of interest deposit on a NSW house, but the vendor then exchanged contracts with a different buyer. What is the first buyer entitled to?
- → Under the certificate of registration pathway, how long must a person hold an assistant real estate agent certificate before becoming eligible for an unrestricted class 2 licence?
- → Since the June 2026 changes to the Property and Stock Agents Act 2002, who can approve standard forms of agency agreement for use in NSW?
- → Under the Property and Stock Agents Act 2002 (NSW), what must a residential sales agency agreement contain for the agent to rely on it?
- → In NSW, if a real estate agent wants to purchase a property they have been engaged to sell, what must they do under the Property and Stock Agents Act?
- → Under NSW legislation, what is the minimum period for which an exclusive agency agreement can be entered into?
- → Under the Property and Stock Agents Act 2002 (NSW), what must be included in a written agency agreement for the sale of residential property?
People Also Study
Property Law & Legislation
110 questions
Contracts & Conveyancing
106 questions
Property Marketing & Sales
129 questions
Property Management
126 questions