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Things You Need to Know about the Cooling-Off Period When Purchasing a New House

5 January 2016 by Jessica Spencer

Buying a new house is a complicated process with many factors that need to be taken care of and addressed to make sure everything is done right. If you were to buy a house and go through all of the complicated procedures demanded to buy a house, only to realise that you don't really want to buy it, you would probably feel like you were in a bit of trouble. However, there is a certain concept called the cooling-off period for these particular situations in which you will be allowed to change your mind about the purchase. The cooling-off period is a last resort for when you need to change your mind, but there are a few things you should know about it before trusting it to save you from a bad deal.

Last resort rather than safety net

The cooling-off period takes place when the contracts have been exchanged between the seller and the buyer. It lasts for a few days and gives the people involved time to think about whether or not they really want to go through with the purchase. However, this should not be considered a safety net but rather as a last resort as there is a penalty fee for changing your mind during the cooling-off period. It might also cause your conveyancer and real-estate agent some trouble to undo the work they've been putting down, which they might charge you for.

When you're not allowed

There are no terms controlling the reason for you to change your mind, so there is nothing stopping you from using the cooling-off period simply because you don't want the house any more. There are, however, a few instances when you're not allowed a cooling-off period to begin with. If you have bought your house at an auction, for example, you won't be given a cooling-off period as the contracts are exchanged the same day as when you put down a bid on the house. The same goes if you're representing a company.

Skipping the cooling-off period

If you don't want your cooling-off period, perhaps because you want to see the deal finished quicker, this is also possible. You'll need to have hired a licensed conveyancer or other acceptable legal representative to do your conveyancing for you, as they are the ones that need to sign the document of waiving the cooling-off period. They also need to give you legal advice to tell you what you're giving up when skipping the cooling-off period. The seller also has to agree to skip the cooling-off period as they are thereby also giving up their right to change their minds. 

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