If you're buying property in New South Wales, there's a good chance someone will mention a Section 66W Certificate.
For many buyers, those three characters are enough to cause concern.
The reality is much simpler.
A Section 66W Certificate is used every day across New South Wales and is particularly common in competitive markets where auctions and unconditional offers are the norm.
What does it do?
When you purchase residential property in NSW by private treaty, the law generally provides a five business day cooling off period for the benefit of the buyer.
A Section 66W Certificate allows that cooling off period to be waived.
Once contracts are exchanged with a valid Section 66W Certificate, the purchase becomes immediately binding.
It's also worth noting that properties purchased at auction do not have a cooling off period, so a Section 66W Certificate isn't required.
Why would someone use one?
There are a number of reasons.
Sometimes, a vendor wants the certainty of an unconditional exchange before accepting an offer.
In a competitive market, presenting your offer with a Section 66W Certificate can also make it more attractive than another buyer's offer that includes a cooling off period.
Similarly, where a property is being marketed for auction, a vendor will often only consider pre auction offers if the buyer is prepared to waive the cooling off period, effectively bringing the offer into line with auction conditions.
It doesn't guarantee you'll secure the property, but it can strengthen your position.
Should I be worried?
Not at all.
The important thing isn't the certificate itself.
The important thing is making sure you've completed your due diligence before signing it.
That usually means:
- Your conveyancer has reviewed the contract.
- Finance has been approved.
- Building and pest inspections have been completed where appropriate.
- You've reviewed any strata information.
- You're comfortable proceeding with the purchase.
Once those steps have been completed, many buyers are happy to exchange without a cooling off period.
Why does my conveyancer matter?
A Section 66W Certificate should never be signed simply because someone asks you to.
Your conveyancer should explain exactly what it means, answer your questions, and make sure you're comfortable before recommending you proceed.
At Your Move Conveyancing, we'll guide you through that conversation so you understand exactly what you're signing and why.
The bottom line
A Section 66W Certificate isn't something to fear.
It's simply a document that allows you to exchange contracts without a cooling off period once you've completed your investigations and are ready to move forward.
Like most things in property, it comes down to good advice, careful preparation and making informed decisions.
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