Cooling-Off Periods in NSW: Your Rights and the 66W Certificate

Reviewed by Brenda Gately, Licensed Conveyancer (NSW Licence No. 05006556, AIC member) — 36 years' experience.

In NSW, most private treaty purchases of residential property carry a cooling-off period of five business days, ending at 5pm on the last day. If you withdraw during it you forfeit 0.25% of the purchase price — $250 for every $100,000. There is no cooling-off period when you buy at auction. Off-the-plan contracts get ten business days. The period can be waived with a certificate under section 66W, which a licensed conveyancer can sign.

The cooling-off period is the most misunderstood part of a NSW purchase, and the misunderstandings are expensive. Here is how it actually works, with the section numbers, so you can check anything you are told against the Act itself.

How long you actually get

Under section 66S of the Conveyancing Act 1919 (NSW), the cooling-off period for a standard residential contract runs for five business days, and for an off the plan contract, ten business days.

Two details people get wrong:

• It runs from the day after the contract was made, not the day itself.
• It ends at 5pm on the final business day — not midnight.

So if contracts are exchanged at 10am on a Tuesday, the cooling-off period ends at 5pm the following Tuesday. Business days exclude weekends and public holidays, which matters a great deal around Christmas and Easter.

What it costs to use it

If you rescind during the cooling-off period, you forfeit 0.25% of the purchase price to the vendor. On a $900,000 purchase that is $2,250. The rest of your deposit is returned.

That is the entire cost. You do not need the vendor's agreement and you do not need a reason — the right to rescind during the period is yours under section 66U.

Viewed against the size of the purchase, 0.25% is cheap insurance for the thing it buys you: time to get finance confirmed and inspections done while still holding the property.

When there is no cooling-off period at all

Section 66T sets out the exclusions. There is no cooling-off period where:

• The property is sold by public auction.
• The contract is made on the same day the property was offered at public auction but passed in.
• A complying section 66W certificate is given at or before the contract is made.
• The contract is made on the exercise of an option.

The auction exclusion is the one that surprises buyers most. If the hammer falls, you are bound immediately — no cooling-off, no finance clause, no inspection period. Everything you would have used the cooling-off period for has to be done before you raise your hand. That is why auction purchases need the contract reviewed, finance approved and inspections completed in advance.

The section 66W certificate — and who can sign it

A 66W certificate waives the cooling-off period. Vendors commonly ask for one, particularly where a purchase is competing against auction bidders, because it makes the sale binding immediately.

Now the part competitor articles frequently get wrong. Section 66W is drafted in terms of a "solicitor or barrister" — but section 66Z defines "solicitor", for these provisions, to include a licensed conveyancer. A 66W certificate can therefore be signed by a licensed conveyancer, a solicitor or a barrister.

The real restriction is not the profession — it is independence. The certificate cannot be signed by anyone acting for the vendor, nor by anyone employed in or a member of the vendor's practice. It must come from your side of the transaction.

Brenda prepares and signs 66W certificates for purchasers as part of ordinary practice. If a firm tells you only a solicitor can issue one, they are mistaken about the Act.

Before you sign one

Waiving cooling-off means giving up your right to walk away. Do not sign a 66W unless:

• Your finance is unconditionally approved — not pre-approved.
• Your building and pest, or strata, inspections are done and reviewed.
• The contract has been reviewed and anything you wanted changed has been negotiated.

We will always explain what you are giving up before preparing a certificate. Sometimes waiving is the right commercial call in a competitive market; it should never be a default.

Extending or shortening the period

The cooling-off period can be extended by the contract, or by the vendor agreeing in writing before it ends. If you need a few more days for finance, this is often negotiable — ask rather than assume.

It can also be shortened, but only takes effect once you give the vendor a complying 66W certificate.

A change already in force

The prescribed form of cooling-off notice changed under the Conveyancing and Real Property Amendment Act 2025. The transitional period ended on 31 May 2026, so contracts exchanged on or after 1 June 2026 must use the new form. If you are looking at a contract prepared from an older precedent, that is worth raising.

What to do during your cooling-off period

1. Confirm finance unconditionally with your lender.
2. Complete inspections — building and pest for a house, strata records for an apartment.
3. Have the contract reviewed properly if it was not reviewed before exchange. See why you should contact a conveyancer before you sign.
4. Raise anything that concerns you immediately — five business days disappears quickly.

Once the period passes, you are committed. Our checklist of what to do after exchange covers what comes next, and the full journey is set out in our guide to the conveyancing process.

Getting help

Whether you are deciding to use a cooling-off period, extend it, or waive it with a 66W, that decision is easier with someone who has done it thousands of times. If you need a Sydney conveyancer who will take the call the day you need it, get in touch before you sign anything.

Request a Free Quote or call (02) 8815 8148.

Frequently asked questions

How long is the cooling-off period in NSW?

Five business days for most private treaty residential contracts, and ten business days for off-the-plan contracts. It runs from the day after the contract was made and ends at 5pm on the final business day (s66S).

What does it cost to pull out during cooling-off?

You forfeit 0.25% of the purchase price — $250 for every $100,000. The balance of your deposit is returned, and you do not need to give a reason.

Is there a cooling-off period at auction?

No. Section 66T excludes sales by public auction, and contracts made on the same day a property was passed in at auction. Finance and inspections must be sorted before you bid.

Can a conveyancer sign a section 66W certificate in NSW?

Yes. Section 66Z defines "solicitor" for these provisions to include a licensed conveyancer, so a conveyancer, solicitor or barrister may sign. The certificate cannot be signed by anyone acting for the vendor.

Should I waive my cooling-off period?

Only with unconditional finance approval, completed inspections and a reviewed contract. In a competitive market it can be the right commercial decision — but it means giving up your ability to walk away.

Can the cooling-off period be extended?

Yes, by the contract or by the vendor agreeing in writing before it expires. If you need more time for finance, ask — it is often negotiable.