Between 2 and 6 business days, a cooling-off period gives the buyer and seller a chance to back out of the contract.
If you haven't so done already, you can use the cooling-off period for any final checks, such as:
If you do decide to back out, the buyer pays the seller 0.25% of the purchase price. So, for a $500,000 house, there will be a $1,250 termination fee. Remember, there's no cooling-off period with an auction sale. You might also have to waive the cooling-off period if you've made an offer before auction.
With most auctions happening at weekends, make sure you've organised your 5-10% deposit before hitting the bidding field. The method of payment will depend on the Terms and Conditions set by the selling agent.
‘Exchange’ is where the contracts are - you guessed it - exchanged. It makes the matter legally binding between parties.
Settlement or 'Completion' is when the parties transfer legal ownership of the property, and the keys are handed over.
If the purchaser can’t settle, or changes their mind, but doesn’t have legal grounds to cancel the agreement, then the vendor can insist that the agreement remain on foot and claim penalty interest on the unpaid purchase price, withhold the deposit or ask for repayment of the actual loss incurred (based on the current market price of the property).
With just few taps, get a detailed appraisal report of your property in today's modernistic market.