In NSW, a buyer signs a private treaty contract for an established home and changes their mind two days later. When can they withdraw, and at what cost?
Correct Answer
A) During the five-business-day cooling-off period, forfeiting 0.25% of the price.
In NSW, a buyer under a private treaty contract for residential property has a cooling-off period ending at 5pm on the fifth business day after exchange. A buyer who rescinds within that time forfeits 0.25% of the purchase price. The period is 10 business days for off-the-plan contracts, and it does not apply to auction sales. Other states differ: Victoria gives three clear business days, SA two clear business days, and WA has no statutory cooling-off.
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