I agreed to purchase a property a couple of days ago but now my bank is asking for documentation that I don't have. It's going to take a while to get that documentation to them and I don't know if the finance will be approved. I just need more time. Can I ask for an extension to the cooling off period?
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Answer by Neha Sharma, Hillsdale 2036 NSW
- A cooling off period is usually for a period of 5 business days from the date of the exchange of contract but it can be extended at any time before its expiration.
- If requested by you (the purchaser) your lawyer can provide the vendor’s lawyer with a written request for extension of cooling off period. It is up to the vendor to accept or reject the request for an extension.
- It is always good practice to finalise your finances prior to entering into a contract of sale.
- Even if you rescind the contract as is your right during the cooling off period you will have to pay 0.25% of the purchase price as a penalty.