Licensed buyers agents and property advise Australia
After exchange of contracts, there is provision for a cooling off period. This means you can change your mind and cancel the contract. This could be for a number of reasons, one being that your pest and building report was a nightmare or you simply gave it a bit more thought and decided that this one wasn't for you.
If you decide not to proceed during the five day cooling off period you will forfeit 0.25% of the purchase price to the seller e.g. on a $150,000 property you would forfeit $375.00. Real estate agents will always prefer you to sign what is called a 66w certificate which waives your cooling off rights. Please note you would never enter into any contract of sale unless a solicitor has given you the ok to do so.
It is important to have your loan formally approved and inspections carried out before attending an auction because auctions work under the 66w certificate method. So plain and simple if you sign that 66w certificate, the property is yours and there is no turning back so make sure when you put your hand up at auction that this is the one for you.
Should you see a property that you believe to be a bargain, try and exchange it on a five day cooling off period so as to avoid getting gazumped at a higher price. Sure if you pull out after the cooling off period you might loose the 0.25% but in most cases that is minimal to what you usually get "gazumped for".
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