NSW’s New Cooling-Off Form Is Now Compulsory in 2026

If Your NSW Contract Still Has the Old Cooling-Off Notice, That’s a Problem

Since 1 June 2026, there’s only one valid cooling-off notice form for residential contracts and options in NSW — and if your contract is still using the old one, it’s no longer just outdated, it’s non-compliant.

Why this changed

The Conveyancing and Real Property Amendment Act 2025 (assented 15 August 2025) rewrote the definition of “option” under section 66P(1) of the Conveyancing Act 1919. Previously, there was genuine ambiguity — highlighted by the NSW Supreme Court case BP7 Pty Ltd v Gavancorp Pty Ltd NSWSC 265 — over whether the vendor disclosure and cooling-off rules that clearly applied to call options (where a buyer can compel a sale) also applied to put options (where a seller can compel a purchase). The amendment closes that gap: both types of option are now explicitly captured, and vendor disclosure obligations apply to put options as well as call options.

This might sound like a technical fix aimed at property lawyers, but it flows through to the standard contract paperwork used in almost every residential sale in the state.

The nuance that trips people up

Here’s something worth knowing even if you’re not dealing with options directly: contracts formed by exercising an option — call or put — have no cooling-off period at all, under section 66T(d) of the Act. The reasoning is that the option period itself already gives the buyer time to consider the purchase, so a further cooling-off window on top of that isn’t considered necessary. If you’re a buyer or seller who’s granted or been granted an option, don’t assume the usual cooling-off protections apply once that option is exercised — they don’t, and that catches people out.

The compliance deadline that’s already passed

There was a transitional period during which either the old or new Schedule 5 cooling-off notice form — under the Conveyancing (Sale of Land) Regulation — could still be used. That window closed on 31 May 2026. From 1 June 2026 onward, the new form is mandatory for every residential contract and option in NSW. The change itself looks subtle on paper — the phrase “to purchase the property” was deleted from clause 3(d) — but it’s not optional, and using the old wording now means the disclosure requirements haven’t been properly met.

What this means for buyers and sellers right now

If you’ve exchanged a contract recently, or you’re about to, it’s worth specifically confirming which cooling-off form has been used. This isn’t a technicality that only matters to lawyers — using the wrong form can affect the validity of the disclosure that was meant to protect you, and creates real risk for whoever issued it, buyer or seller.

For sellers preparing a listing, this is exactly the kind of thing that should be locked down before the property goes to market, alongside the rest of your contract preparation — not discovered when a buyer’s solicitor raises it after exchange.

For buyers, it’s one more reason a proper contract review before you sign is worth the small amount of time it takes — a compliant cooling-off notice is one of several things we check as a matter of course.

The takeaway

This is a live compliance point, not a future one — the transition period is well and truly over. If you’re a vendor, agent, or fellow practitioner and you’re not 100% sure your standard contract pack has been updated, that’s worth checking today, not at your next contract renewal.