Section 66 - Cooling off period.

Hi, I came across a clause on websites while browsing some information on cooling off period where an owner can choose to have no cooling off period. It has to do with section 66w clause.

Just wanted to know under what circumstances would this clause be in the contract. Why would someone want to take off the cooling off period.

Cheers B

Auction
or

Fast no muck around transactions like mortgagee in possessions or Agents and Sellers that have been "mucked" around

ta
rolf

Rolf Latham said:

Auction
or

Fast no muck around transactions like mortgagee in possessions or Agents and Sellers that have been "mucked" around

ta
rolf

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cant remember but the website said sometimes a contract could include that clause and was wondering why would someone want to have that clause.. is it because they want to get "rid" of a property which has some issues or could that be any other reason?

Just triggered my grey cells.

66W waives purchasers cooling off rights - has to be signed by their solicitor.

They can be used to strengthen the sale, ie buyer cant pull out due to change of mind. Unless you are 100% sure of the property and your finance, you would want to offset a 66W waiver with a subject to finance/building and pest clause.

They can be handy for low offers if you can do them unconditionally.

DaveMSydney said:

66W waives purchasers cooling off rights - has to be signed by their solicitor.

They can be used to strengthen the sale, ie buyer cant pull out due to change of mind. Unless you are 100% sure of the property and your finance, you would want to offset a 66W waiver with a subject to finance/building and pest clause.

They can be handy for low offers if you can do them unconditionally.

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Thank you Dave and ROFL. Can this work in the favor of the buyer or its an advantage only for the seller?

Usually with a contract of the sale of land in NSW the buyer can change their mind and pull out within 5 days of signing.

So if you were selling and had 2 offers, identical except one buyer was willing to sign without this cooling off period applying you would likely take this buyer over the other one. They would be locked in whereas the cooling off period buyer could still pull out.

b7277 said:

Thank you Dave and ROFL. Can this work in the favor of the buyer or its an advantage only for the seller?

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this can be to the benefit of the purchaser and used as a bargaining tool for a competitive property.

Cooling off periods provide a certain level of risk to a seller in that the buyer can just change their mind with little penalty. When buyer's cool off it can be devastating to a marketing program as other buyers may be lost.

Purchasers who remove their right to 'cool off' make their offer stronger than those who have a cooling period, thus increasing their chance of securing the purchase.


Please note that the purchaser can no longer waive their right to a cooling off period in Victoria. This amendment was made to the act March 1, 2012.