When you are purchasing a property unless:
– the sale is by publicly-advertised auction;
– the property is purchased within 3 clear business days before or after a publicly-advertised auction;
– the purchaser has previously signed a contract with the vendor for the same property in substantially the same terms; or
You are entitled to a Cooling off period. This period is 3 clear business days from the date you sign the contract.
During the cooling-off period, the purchaser can terminate the contract by written notice and obtain a refund of all money paid, except for $100 or 0.2% of the purchase price, whichever is greater.
To end the contract within the cooling-off period, the purchaser must provide the vendor or its agent or the vendor’s estate agent with written notice. The notice can be given either by hand delivery or by leaving it at the address of the vendor or its agent.
A contract of sale should contain a clear notice advising the purchaser of their cooling-off rights, otherwise the purchaser may rescind the contract at any time before they become entitled to possession of, or the receipt of rents and profits from, the property (usually settlement). The notice is usually found under the heading “Important Notice to Purchasers”.
If you want more information on your rights when purchasing property, contact one of our experienced property lawyers on 03 8657 3700.