What Is a Section 66W Certificate, and When Do You Need It in NSW?

Published 25 June 2025

Key Takeaways

A Section 66W certificate waives the standard five-business-day cooling-off period on private treaty property sales in NSW, making the contract immediately binding.
It must be signed by your own solicitor or conveyancer, confirming you’ve received legal advice and understand the risks.
Waiving cooling-off can strengthen your offer in competitive markets, but also significantly increases financial risk, potentially losing 10% deposit and more if you withdraw.
Always complete due diligence, including finance pre-approval and building/pest inspections, before requesting a 66W certificate.

What Is the Cooling-Off Period?

In NSW, when buying residential property privately (not at auction), the Conveyancing Act 1919 grants buyers a five-business-day cooling-off period after signing the contract. During this time, buyers can withdraw for any reason, only forfeiting 0.25% of the purchase price.

However, buyers can waive this right by providing a Section 66W certificate from their legal representative at the time of exchange.

What Does a Section 66W Certificate Do?

A Section 66W certificate effectively removes the cooling-off period, meaning once the contract is exchanged, it’s fully binding — just like an auction result.

This certificate makes your offer more attractive to sellers seeking certainty, particularly in fast-paced or highly competitive markets.

How To Obtain One

To validly issue a Section 66W certificate, your solicitor or conveyancer must:

Be independent of the vendor (not acting for them or in a related firm)
Confirm in writing that they’ve advised you of the legal consequences of waiving the cooling-off period, as prescribed by the Conveyancing Act 1919

This certificate must accompany the signed contract at the time of exchange; it can’t be added later.

Risks and Rewards

Benefits

Stronger bid in competitive situations — no clause for buyer to withdraw
Faster contract finalisation, giving you negotiating leverage on settlement terms

Risks

Immediate binding: If you pull out, you’ll likely lose up to 10% of the purchase price, and could be liable for the difference if the seller resells at a loss
Due diligence pressure: Must complete building / pest inspections and secure finance before exchange, or risk forfeiting significant sums
High stakes for first‑time buyers or those without backup funding

When Should You Consider It?

A Section 66W certificate may be appropriate if:

You’re competing in a hot market and want to make a compelling offer
You’re confident you can finalise finance and inspections before exchange
You’ve consulted your solicitor and understand the legal implications

It is not recommended if:

You’re a first-time buyer unsure about inspections or finance
You haven’t secured unconditional loan approval
Market volatility or unforeseen issues (e.g. pest infestations) make waiver risky

Best Practices Before You Sign

To safely request a 66W waiver:

Obtain unconditional finance approval
Complete building and pest inspections with qualified advisors
Get your contract reviewed by a conveyancer or property lawyer
Discuss the financial implications of a binding contract in detail with your lawyer

These steps ensure you’re protected if circumstances change post-exchange.

Final Thoughts

A Section 66W certificate can give you a competitive edge in NSW property markets. Yet, with it comes significant risk; the loss of your cooling-off period could cost tens or hundreds of thousands if things go wrong.

Always proceed with legal advice and thorough preparation. If you’re unsure, your conveyancer or solicitor can help you weigh the benefits against the potential financial consequences and guide you through a safe and strategic property purchase.

Speak to the conveyancing team at Berryman Partners.

As a local family law firm, we have a deep understanding of the Newcastle & Lake Macquarie markets. You’ll be dealing with one of our conveyancing experts, not a secretary or clerk. This means we can give you the best possible advice on your property transaction. Contact us today.