A purchaser in Victoria discovers a significant structural defect after signing a contract but before the cooling-off period expires. The defect was not disclosed in the vendor statement. What is the purchaser's best course of action?
Correct Answer
A) Exercise the cooling-off right by giving written notice before the period ends.
During the cooling-off period, the purchaser can withdraw from the contract for any reason, including the discovery of undisclosed defects. This is often the most straightforward option as it avoids the complexity and uncertainty of legal action for non-disclosure.
Why This Is the Correct Answer
While the cooling-off period is running, the buyer can end the contract for any reason by giving notice, without proving any fault by the vendor. The cost is limited to $100 or 0.2% of the price, whichever is greater, which makes it the most certain remedy.
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A purchaser in Queensland wishes to exercise their cooling-off rights on a residential property purchase. What is the maximum penalty they may face for cancelling the contract?
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