In the current market, there has been a marked increase in the number of residential properties that are sold privately instead of being advertised for auction.
If you buy privately, you can, generally speaking, change your mind and cancel your purchase within three business days of signing a contract. This is called “cooling off”.
There are some exceptions that rule out cooling off. One of the more common ones is where you obtain advice from a lawyer beforehand.
Business days do not include weekends or public holidays. For example, if you sign a contract on a Friday after work, you can cancel it up to and including the following Wednesday.
You “cool off” by giving a notice to the seller or, more usually, to the seller’s estate agent.
A simple letter, addressed to the estate agent, advising you are exercising your right to “cool off” and asking for your deposit to be returned is all that is necessary.
It is best to deliver your letter to the estate agent’s office during normal business hours.
Make a note of the date and time you hand over your letter. If you give it to anyone other than the person who sold you the property, ask their name, tell them what your letter is about and to whom they need to give it.
If you “cool off”, the seller can keep $100 or 0.2% of the price, whichever is the greater, out of the money you have paid, as compensation for losing the sale.. The estate agent will deduct the amount, when returning your deposit.
