Definition
An Option to Waive Cooling-Off refers to a buyer’s ability in New South Wales to waive the standard cooling-off period that normally applies to private treaty residential property purchases. This is done by providing a Section 66W certificate, which is a legal document prepared and signed by the buyer’s solicitor or licensed conveyancer.
When a Section 66W certificate is issued and attached to the Contract for Sale, the buyer confirms that they have received legal advice and agree to proceed without the cooling-off period. As a result, once contracts are exchanged, the property transaction becomes immediately legally binding, similar to the conditions of a property purchased at auction.
Where This Applies
The option to waive the cooling-off period typically applies to private treaty property transactions in New South Wales.
Common situations where buyers may waive the cooling-off period include:
Competitive Property Markets
In strong property markets with multiple interested buyers, sellers may request that buyers waive the cooling-off period to strengthen their offer.
Off-Market or Private Sales
Buyers purchasing property through private negotiations may agree to waive cooling-off to secure the property quickly.
Pre-Auction Sales
When a buyer negotiates to purchase a property before the scheduled auction date, the seller may require the buyer to waive cooling-off.
Investor Purchases
Experienced property investors sometimes waive the cooling-off period when they have already completed due diligence before exchange.
What a Section 66W Certificate Is
A Section 66W certificate is a legal document issued under the Conveyancing Act 1919 (NSW) that allows a buyer to waive the statutory cooling-off period.
To issue the certificate:
- The buyer must obtain advice from a solicitor or licensed conveyancer.
- The legal professional confirms that the buyer understands the consequences of waiving the cooling-off period.
- The certificate is then attached to the Contract for Sale before exchange.
Once this certificate is provided, the buyer cannot withdraw from the contract without serious legal consequences after exchange.
Why Sellers Request Cooling-Off Waivers
Sellers often prefer buyers who are willing to waive the cooling-off period because it provides greater certainty that the sale will proceed without delays or withdrawals.
Waiving the cooling-off period may make an offer more attractive to a seller, particularly when multiple buyers are competing for the property. In some cases, sellers may prioritise offers that include a Section 66W certificate because the transaction becomes binding immediately upon exchange.
Risks Buyers Should Consider
Although waiving the cooling-off period can strengthen a buyer’s offer, it also removes an important protection normally available in NSW property transactions.
Without a cooling-off period:
- The buyer cannot rescind the contract after exchange without potentially significant legal consequences.
- The deposit may be forfeited if the buyer fails to complete the purchase.
- Buyers must ensure that important checks—such as finance approval, building and pest inspections, and contract review—have already been completed before exchange.
For this reason, legal professionals usually advise buyers to fully understand the risks before agreeing to waive the cooling-off period.