A NSW homeowner signs an exclusive agency agreement to sell her house at 3 pm on a Friday. There is no public holiday that weekend. When does her statutory cooling-off period for the agency agreement end?
Correct Answer
A) At 5 pm on the Saturday
Under section 59 of the Property and Stock Agents Act 2002, a residential sales agency agreement has a cooling-off period that starts when the client signs and ends at 5 pm on the next day that is a business day or a Saturday. Sundays and public holidays are excluded. Signing on a Friday therefore gives a cooling-off period ending at 5 pm on the Saturday.
Why This Is the Correct Answer
The next day after Friday that is a business day or a Saturday is the Saturday, and the period ends at 5 pm on that day.
Why the Other Options Are Wrong
Background Knowledge for Agency Practice
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Common Mistakes to Avoid on Agency Practice Questions
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A vendor signs an agency agreement to sell her Parramatta house at 2pm on a Friday. Under the Property and Stock Agents Act 2002, when does her cooling-off period for that agency agreement end?