Do you often receive this question from buyers……… “What if I change my mind about the house? Can I terminate the Contract under the cooling off period?”
Short answer is, yes. If the Buyer has changed their mind about purchasing the property, they have a right to terminate the Contract within 5 business days from receiving a fully signed copy of the Contract. However, should the Buyer terminate within the Cooling-off period, the Seller may decide to charge the Buyer a termination penalty of 0.25% of the purchase price provided the Buyer has paid the initial deposit.
What about the Seller? Can they terminate the Contract under the cooling off period if they change their minds? Unfortunately, no.
What right does the Seller have if they change their mind or if they find another buyer with a more favorable Contract? If a Buyer does not: -
(a) advise the outcome of their finance condition or building and pest condition by 5pm on the due date; or
(b) requests an extension of the conditions prior to 5pm on the due date.
The Seller can elect to wait until after 5pm to terminate the Contract upon the Buyer’s failure to advise on the outcome of their finance or building and pest condition.
This is the Seller’s only remedy for the Buyer’s failure to give notice under the conditions, the deposit paid by the Buyer will be refunded to them.