A Section 17 Certificate
A Section 17 certificate is a legal document used in property transactions in the Australian Capital Territory (ACT). It's named after Section 17 of the Civil Law (Sale of Residential Property) Act 2003 (ACT), which outlines certain conditions related to property sales.
In the ACT, when contracts exchange for the sale of residential property, there's typically a 5-day cooling-off period mandated by law. During this period, the buyer has the option to rescind the contract if they choose to.
However, there are exceptions to this cooling-off period rule. It doesn't apply if:
The property is sold at auction.
The property is sold through a tender process.
The buyer is a corporation.
A solicitor provides a Section 17 certificate on behalf of the buyer, effectively waiving their rights under the cooling-off period.
In the context of a pre-auction offer, the sales agent handling the property sale will usually require the buyer to provide a Section 17 certificate to waive their cooling-off rights. This is because the sales agent is unlikely to cancel the auction unless the contracts exchange without any conditions.
To make a successful pre-auction offer, the buyer needs to seek legal advice and obtain a Section 17 certificate from their solicitor, thereby waiving their rights under the cooling-off period.
If you're considering making a pre-auction offer and need assistance with reviewing the contract and obtaining a Section 17 certificate, our Property Law specialists team can help. Feel free to reach out to discuss further details