Cooling Off Period NSW: How Long It Lasts and What It Costs to Pull Out

•9 October 2026

Key Points

In NSW, a buyer of residential property usually has a cooling off period of five business days after exchange, ending at 5pm on the fifth business day.
If you pull out during that time you pay 0.25% of the price, and you can waive, shorten or extend the period, but get advice before you do.

Signed property contract and pen beside an hourglass with the sand almost run out

In NSW, a cooling off period is a short window after contracts are exchanged on a residential property, usually five business days, when the buyer can rescind the contract by written notice and pay the seller 0.25% of the price.

The cooling off period in NSW for buying residential property is usually 5 business days (s 66S Conveyancing Act 1919 (NSW)). It starts when contracts are exchanged and ends at 5pm on the fifth business day after the day of exchange.

For example, if you exchange at 10am on a Tuesday, your cooling off period ends at 5pm the following Tuesday. A longer period of 10 business days applies to off-the-plan purchases.

What does it cost to pull out during the cooling off period in NSW?

If you change your mind, you can end the contract during the cooling off period by giving the seller written notice. The notice must be given before the period ends, so act quickly if you have doubts. The notice must comply with the requirements of s 66W of the Conveyancing Act 1919 (NSW) and must be served before completion.

Pulling out of a property contract this way is not free. You must pay the seller 0.25% of the purchase price, which is $250 for every $100,000. On a $2 million purchase, that is $5,000. The seller is entitled to recover the amount from the deposit paid under the contract.

The best time to raise concerns is before you exchange. Our buying a property lawyers can review the contract with you, so you know what you are signing.

Can you waive the cooling off period?

Yes. A buyer can waive (give up) the cooling off period by giving the seller a formal waiver certificate under s 66W of the Conveyancing Act 1919 (NSW). The buyer and seller can also agree in writing to shorten or extend the period.

If you waive the cooling off period, you lose the right to pull out on the 0.25% basis. Before you agree, make sure your finance, inspections and contract review are finished. Always get advice first. Our conveyancing and property team can explain what waiving means for you.

Frequently asked questions

Is there a cooling off period if I buy at auction?

No. There is no cooling off period if you buy at auction, or if you exchange contracts on the same day as the auction after the property is passed in. Have the contract reviewed and your finance ready before auction day.

Can the cooling off period be shortened or extended?

Yes. The buyer and seller can agree in writing to shorten or extend the cooling off period. Have your lawyer check any change before you sign it.

How we can help

If you need a conveyancing lawyer in Sydney, we can review your contract and explain your cooling off rights before you exchange. Book a free consultation today.

Further information

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Dessy Harvey

Dessy Harvey is a paralegal and law graduate at Stephen Wawn & Associates, working in probate and estate administration, estate disputes, conveyancing and civil litigation under the supervision of the principal. She began her legal career in Bulgaria and speaks Bulgarian and English fluently, as well as Russian at an intermediate level. Dessy expects to be admitted as a lawyer in NSW in November 2026.