What Is a Section 66W Certificate?
A Section 66W certificate is a legal document under the Conveyancing Act 1919 (NSW) that allows a purchaser to waive the cooling-off period on a residential property contract. Once a valid Section 66W certificate is given and contracts are exchanged, the contract becomes unconditional and immediately binding.
The certificate must be signed by the purchaser's solicitor or conveyancer, confirming that the buyer has been advised of the consequences of waiving the cooling-off period.
What Does “Unconditional” Mean?
Exchanging contracts with a Section 66W certificate means:
- there is no finance condition
- there is no building and pest condition
- the purchaser cannot change their mind
The purchaser is legally bound to complete the purchase, even if circumstances change later.
What Happens If the Purchaser Cannot Complete?
If a purchaser cannot complete (for example, due to lack of finance), the vendor will, after issuing a notice to complete and upon expiry of the notice period:
- terminate the contract
- retain the deposit paid under the contract
- sue for any unpaid portion of the 10% deposit
- sue the purchaser for any shortfall if the property is resold for a lower price
- sue the purchaser for the agent's commission on the resale and legal fees
Need Advice Before You Sign?
If you are considering entering into a contract unconditionally, please give our knowledgeable team at Sylvania Legal and Conveyancing a call. We can explain the risks before you commit.
Telephone: (02) 9544 6443
Email: info@sylvanialegal.com.au
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