Whatshot
Buyers, you can't 'cool it' once you've signed an offer
Buyers, you can't 'cool it' once you've signed an offer
Date: 2017-04-07
Once an Offer to Purchase has been signed by both the buyer and seller, it immediately becomes a legal and binding sale agreement.
The buyer will generally have already signed the contract before it is presented to the seller, which means that buyers need to be certain that they want to purchase the property before they sign the agreement.
Many people are under the misconception that the Consumer Protection Act (CPA) gives them a cooling-off period when entering into a sales agreement.
Sometimes buyers will sign offers on several homes in the hope that one of the sellers will accept, but if more than one offer is accepted they could find themselves in some hot water.
It is best to submit one offer at a time and work from there.
The CPA states that if the cooling-off period does apply, the five days do not start from the date that the offer is signed, but rather the day the property is transferred into the buyer's name.
Considering that transfer can take between three and six months after the offer is signed, cancellation of the agreement at this point could prove to be extremely problematic for all parties involved.
If a buyer has signed an agreement, but would no longer like to purchase the property, it is best for them to be upfront with the seller and let them know as soon as possible, rather than breaching the contract.