The cooling-off period is a legal privilege that protects customers and is included in all standard sales contracts. The cooling-off period varies by state, and there are always exceptions to the rule, auction contracts are generally exempt from cooling-off. It is critical to check with your conveyancing lawyer to see if the cooling-off period applies to you.
If the cooling-off period applies and you want to use it to cancel the contract, you must be willing to pay the seller the appropriate penalty for exercising your right. This punishment is also allowed under the statutes as a means of safeguarding the seller from dishonest customers.
It is also crucial to make sure the cooling-off notice is properly served (sent) to the seller and/or their representatives. Remember that if you do not do it correctly, your intention to use the cooling-off period may become null and void, leaving you obligated to complete the deal. If you are unable to complete it after the cooling-off period has expired, you will be liable for the full amount of your deposit, not just the cooling-off penalty.
What should you do while you are waiting for the cooling-off phase to end?
Buyers typically use the cooling-off period to determine that they truly want to proceed with the transaction. During this time, the buyer can notify the seller that they no longer want to buy and the contract can be terminated. The buyer does not have to give the seller any cause to exercise this entitlement.
If you are not going to alter your mind during the cooling-off period, you should at the very least use the time to perform some basic research. Property transfer service in Geelong is to ensure that you are certain about purchasing it.
It can be used for a variety of things, including telling your conveyancing lawyer to undertake preliminary searches, getting financing, and arranging a building and pest inspection of the property.
If you do not want to risk the penalty charge, speak with your conveyancing lawyer before signing the contract.
During the cooling-off period, what searches should be ordered?
Because most certificates can take 3–5 business days to arrive from the authorities, the cooling-off period is usually insufficient to order all of the searches necessary for purchase.
You should, at the very least, direct your conveyancing attorneys to request a title search and verify the plan to ensure that the property you have contracted to buy is the one you have visited. In the past, buyers have purchased the house next door because they did not ask their conveyancer to do a title check or because their conveyancer did not notice the orientation of the plan to confirm that the property was the wrong one. This can be a highly expensive and time-consuming error. As a result, make sure you hire a conveyancing lawyer as soon as possible to do all of the essential searches. if you wait until your financing is authorized, it may be too late. As a result, you should get general advice from your property lawyers in Geelong as soon as feasible. At the very least, your knowledgeable buying property adviser in Geelong will be able to supply you with a checklist to complete as part of your due diligence. For more details and information contact us right away!