Is there a cooling-off period when I buy a home?
It’s hard to make the right decision for your home with so many different properties. Besides all mortgage rules, you also need to know about your rights as a buyer, for example, the cooling-off period and any termination clauses.
If you buy a home, you sign a purchase agreement. After signing the purchase agreement you have 3 days to change your mind and opt-out.
You sign a purchase agreement if your bid on the property is accepted. The purchase agreement states:
- The purchase price of the property.
- The date of delivery of the property.
- Termination clauses, such as the delivery being subject to financing or a technical inspection.
Ask for an expert (realtor or notary) to assist you when drafting the purchase agreement.
After signing the purchase agreement, you have 3 days to change your mind. The cooling-off period starts on the day after receiving the purchase agreement. During this period, the buyer can still cancel the purchase of the property. The buyer doesn’t have to give a reason and doesn’t have to pay a fee to the seller.
The cooling-off period can be longer if it’s in the weekend or a public holiday. If the cooling-off period ends in the weekend or a public holiday, then the cooling-off period lasts until the next working day.
The buyer could agree to a longer cooling-off period with the seller. This doesn’t happen too often though. A shorter period than the statutory period of 3 days is not allowed.
Contact us to receive a pre-approval on your financial possibilities to buy a home.
See what you know and where you can improve your mortgage approach so you make an informed decision about the terms of your mortgage.