Real Estate Sale Contract Cooling Off Period Sa
When buying or selling a property, it's important to understand the legal aspects that come with signing a contract. One aspect that often gets overlooked is the cooling off period. A cooling off period is a period of time in which a buyer can change their mind and pull out of a contract without facing any legal consequences. In this article, we'll be discussing the cooling off period in real estate sale contracts in South Australia.
What is a cooling off period?
A cooling off period is a set amount of time that allows a buyer to reconsider their decision to purchase a property. This period is usually set for a few days after the contract is signed, giving the buyer time to think and potentially back out of the deal without any legal repercussions.
When does the cooling off period apply?
In South Australia, the cooling off period applies to all residential property sales, including houses, units, and apartments. However, there are some exceptions to this rule, such as when the property is sold at auction or if the buyer waives their right to a cooling off period in writing.
How long is the cooling off period?
In South Australia, the cooling off period is two business days. This means that if you sign a contract on a Friday, the cooling off period will end on the following Tuesday. It's important to note that weekends and public holidays are not included in the cooling off period.
What happens during the cooling off period?
During the cooling off period, the buyer has the right to change their mind and pull out of the contract. If the buyer decides to do so, they must notify the seller in writing before the cooling off period expires. The seller must then return any deposit or payment made by the buyer, minus a small fee (usually 0.25% of the purchase price).
Can the cooling off period be waived?
Yes, the cooling off period can be waived if the buyer signs a document stating that they understand and accept the risks of waiving their right to a cooling off period. This document must be signed before the contract is signed, and must be in writing. It's important to note that waiving the cooling off period can be risky, as it means that the buyer cannot back out of the deal if they change their mind.
Can the cooling off period be extended?
The cooling off period cannot be extended in South Australia, unless both parties agree to an extension in writing. This is rare, and usually only happens if there are extenuating circumstances that prevent the buyer from completing their due diligence within the two-day period.
Conclusion
The cooling off period is an important aspect of real estate sale contracts in South Australia. It gives buyers the chance to reconsider their decision and pull out of the contract without any legal consequences. However, it's important to understand the rules and exceptions surrounding the cooling off period, and to make an informed decision about whether or not to waive this right.