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4 April 2008 What is A Cooling Off Period?
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.
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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Primarily, we spend our time evaluating individuals' wants and needs. Our services cover all phases of the purchasing process - from finding the right property and determining its true market value, to negotiating the best possible price, and bidding on your behalf at auction. Since opening our doors in 1997, we have consistently found the right property for our clients in the shortest possible time. Our extensive real estate experience puts us in good stead to negotiate on your behalf.