Cooling Off Period

A cooling-off period is a specified timeframe during which a buyer of a property can change their mind and withdraw from the purchase without facing significant penalties.

What is a cooling-off period? 

A cooling-off period is a specified timeframe during which a buyer of a property can change their mind and withdraw from the purchase without facing significant penalties. During this period, the buyer can conduct further inspections, arrange financing, or address any concerns they may have. If the buyer decides to proceed with the purchase, the contract becomes legally binding once the cooling-off period expires. 

When does the cooling period start? 

The cooling-off period typically starts as soon as you exchange contracts. The duration of the period can vary, but it's often around 5 business days. 

It's important to note that the specific details, including the length of the cooling-off period, should be outlined in the terms of the contract, and they can vary based on local regulations and negotiations between the buyer and the seller. 

Can the seller change their mind during the cooling off period? 

Once the buyer has signed the contract during the cooling-off period, the seller typically cannot change their mind. It's a provision that exists primarily for the buyer's benefit. 

Once contracts are exchanged you're legally bound to sell the property and can only get out of the contract in limited circumstances. By not fulfilling your promise as the seller, you may find yourself facing legal action.

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