When a property is sold at auction, or on auction day, the contract generally tends to be an unconditional contract, meaning that however the contract is signed and exchanged on the day, binds the agreement.
There’s no cooling off period.
When a property is sold by way of private treaty however, after the contracts have been signed and exchanged, the buyer has a cooling off period of up to five business days where they can rescind the contract.
If the buyer withdraws from the sale however, they will forfeit 0.25% of the purchase price to the seller.
It’s also worth noting that private treaty buyers have the option to waive their cooling off rights and enter into an unconditional contract by instructing their solicitor or conveyancer to sign and issue a Section 66W Certificate (66W) to either the seller’s solicitor / conveyancer or agent.
Buyers issuing a 66W effectively enter into the contract ‘on auction terms’.
Buyers offering a 66W usually do so in order to make the proposition of their offer more lucrative and appealing to the seller.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
