A 66W certificate is a document that removes the buyer's cooling-off period.
It is signed by the buyer's own solicitor after the contract has been explained.
Once it is given, you are bound on exchange with no right to withdraw.
Where the certificate comes from
The certificate is made under section 66W of the Conveyancing Act 1919.
That section allows a buyer to give up the cooling-off rights that would otherwise apply to a residential purchase.
It is the only way the law sets out for a buyer to waive the period in full. The period can also be shortened or extended by written agreement with the seller.
Who signs it
The certificate must be in writing and signed by a solicitor or barrister.
That person must not be acting for the seller.
That person must not be employed in, or a member of, the same legal practice as the seller's solicitor.
In practice, it is signed by the solicitor you have engaged to act for you on the purchase.
What the solicitor must explain first
The certificate must state that the solicitor has explained three things to the buyer:
- The effect of the contract for the purchase of the property.
- The nature of the certificate.
- The effect of giving the certificate to the seller.
Where the buyer is a company, the explanation is given to an officer of the company or a person who manages its affairs.
A seller can rely on a certificate in this form that appears to be signed by a solicitor or barrister.
For this reason, the explanation is not a formality. It is the buyer's only safeguard before the right to withdraw is gone.
Why a seller asks for one
A seller who receives a 66W certificate knows the sale is firm from the day of exchange.
A seller may ask for one as a condition of accepting your offer, or before the auction, if the property is sold before auction day.
A buyer may offer one to make an offer stand out.
When a buyer should sign one
Only after each of these steps is complete:
- The contract, including the special conditions, has been reviewed by your solicitor.
- Any changes you need to the contract have been agreed in writing.
- Your loan has formal approval for this property, and you know your lender's conditions.
- Building and pest inspections are done. For a unit, the strata records or report are checked.
- You have the full deposit ready for exchange.
- You have checked the transfer duty and the other costs you must pay by settlement.
If any step is not done, the risk of that step falls on you. You will not be able to withdraw if the result is bad.
Where buyers get caught
Signing because the agent says it is standard.
The agent acts for the seller. A waiver helps the seller and removes your protection.
Waiving with pre-approval only.
Pre-approval is not formal approval. A loan can still be refused after exchange.
Using a solicitor connected to the seller.
The certificate must be signed by a solicitor who is independent of the seller and the seller's solicitor.
Assuming an inspection can be done later.
After exchange on a 66W certificate, a bad report does not give you a right to withdraw.
Common questions
Can a licensed conveyancer sign a 66W certificate?
Section 66W refers to a solicitor or barrister. Speak to a solicitor if you are asked to waive your cooling-off period.
Can I withdraw after giving a 66W certificate?
Not under the cooling-off rules. Once the certificate is given and contracts are exchanged, you are bound.
Is a 66W certificate needed at auction?
No. There is no cooling-off period at auction, so there is nothing to waive.
If you are asked for a 66W certificate, send us the contract first. Call (02) 8062 6300.
This article is general information only. It is not legal advice for your situation.