Cooling Off refers to a period of time, usually about five days, after you have exchanged contracts in which the buyer has the opportunity to get pest and building reports done, ensure financing is in order and generally get ready for the purchase and decide if they wish to definitely proceed with the sale.
During this period the purchaser is able to get out of the contract for any reason but it is important to note that if the sale does not proceed a fee of 0.25% of the purchase price ($250 for every $100K) is paid by the purchaser to the vendor.
During the Cooling Off Period the vendor is bound to the sale of the property and cannot sell to anyone else even if a higher offer is made.
It is possible to waive the Cooling Off Period by the purchaser providing the vendor with a Section 66W Certificate. The buyer will need to engage a solicitor or conveyancer to execute this.
The advantages of a Cooling Off Period for the purchaser include securing the purchase and ensuring that the vendor cannot sell to anyone else in this time. It also usually expedites the process of the sale and means less stress and uncertainty for the buyer.
For the vendor a Cooling Off Period provides an expression of genuine interest and provision of some compensation even if the sale does not go ahead (0.25% fee). It also indicates that the purchaser is motivated to go ahead with the sale and has made a financial and psychological investment in the property. It also ensures that the purchaser does their searches, pest and building reports and arranges their finance in a timely manner meaning less wasted time if the property needs to go back on the market.
www.irisproperty.com.au
info@irisproperty.com.au
Tel : 02 45677254
No comments:
Post a Comment