Cooling Off Period in WA
Discover Western Australia’s unique stance on cooling off period for real estate.
What Is a Cooling Off Period for Real Estate in Western Australia?
In Western Australia, there’s no legislated cooling off period for real estate. So, once you’ve signed the dotted line, you’re committed. However, if both the buyer and the seller mutually agree, a cooling off period can be written into the contract. As a buyer, you must proactively propose to include this window in the contract.
How Long Is the Cooling Off Period in WA?
While many Australian states have stipulated cooling off periods, Western Australia operates differently. Here, there’s no standard cooling off duration. If buyers wish to have such a period, they’ll need to consult their legal representative to draft an additional clause in the contract, which the seller would then need to accept.
How is Western Australia distinct in its approach to cooling off periods?
In Western Australia:
- There’s no mandated cooling off period for real estate contracts.
- Once both parties sign a real estate contract, it’s a binding commitment.
- The widely-used Contract for Sale of Land or Strata Title by Offer and Acceptance (O&A) is a simple document crafted to facilitate easy completion. But its brevity should not lead to complacency. While straightforward, it might not cater to unique situations.
- Some buyers choose to add extra conditions to this contract, such as clauses for building inspections, before agreeing to the sale.
- For strata-titled properties, there are additional disclosure prerequisites.
- Buyers are advised to familiarise themselves with the standard terms and conditions inherent in the O&A, which are detailed in the Joint Form of General Conditions booklet.
Remember that signing the O&A might be one of your most pivotal financial moves. Mistakes or oversights here can be pricey. If you’re uncertain about any aspect of the transaction, seek guidance before you commit to the contract.
Make sure to do due diligence before signing the dotted line.
Without a default cooling-off period in Western Australia, buyers must be vigilant and carry out rigorous due diligence before committing to an offer. This includes:
- Seek Conveyancer Expertise: Before delving deep, bring a conveyancer on board. Their expertise will guide you on specific conditions worth adding to your offer, from structural assessments to pest evaluations.
- Gauge the Property’s Condition: Contemplate coordinating property inspections or evaluations with the seller to address potential risks. Do that either before placing an offer or leading up to settlement.
- Don’t Simply Skim the Contract: Immerse yourself in the Contract for Sale’s specifics. Are there ambiguous clauses? Seek clarity. While it might seem like a chore initially, a well-understood contract is a safeguard against future dilemmas.
- Get Acquainted with the Local Market Scene: Get a pulse on the local property landscape. Cross-referencing the property against recent comparable sales can shed light on the value proposition at hand.
- Lay Down Your Financial Groundwork: Before submitting an offer, lay down your financial groundwork. Beyond the mortgage pre-approval, familiarise yourself with auxiliary expenses—from stamp duties and inspection charges to potential outlays for repairs or makeovers.
- Commit with Conviction: Given Western Australia’s stance on the cooling-off period, you need to have unswerving confidence in your property choice before taking the plunge.
Remember, buying a home is a significant decision. With the unique framework of cooling off period in Western Australia, due diligence becomes even more vital.
