The ordinary protection
Many private treaty residential purchases in NSW carry a statutory cooling-off period. It gives the purchaser a short period after exchange in which to withdraw, subject to the statutory consequences. The length and availability of the period can depend on the transaction and the terms agreed.
The cooling-off period is not a substitute for proper due diligence. Time can be very short, and finance, inspections, strata enquiries and legal negotiations may all need to occur at once.
What a section 66W certificate does
A certificate under section 66W of the Conveyancing Act 1919 is used to waive the cooling-off period. It must be given by a solicitor or licensed conveyancer who is independent of the vendor and who has explained the effect of the certificate to the purchaser.
Once a valid certificate is provided and contracts exchange, the purchaser is generally committed without the ordinary cooling-off right. That can strengthen an offer, but it removes an important exit mechanism.
Questions before waiving
A purchaser should know why the vendor is requesting the certificate and whether all material checks are complete.
- Is finance unconditionally approved for this property?
- Have building, pest or strata reports been considered?
- Are the contract terms and title acceptable?
- Are the purchaser name and ownership structure final?
- Can the deposit be paid immediately?
Do not treat it as routine
A section 66W certificate is not simply an administrative form. It records advice about giving up a statutory right. The purchaser should allow sufficient time for genuine advice and should not assume a certificate can safely be issued moments before exchange.