At 9 am on a Monday a Class 2 agent emails a vendor the unsigned residential sales agency agreement and the approved guide. At 4 pm that same Monday the vendor signs the agreement and the Fair Trading waiver form so marketing can start that night. What is the position?
Correct Answer
B) The waiver is ineffective because the documents were not given a business day earlier
The cooling-off period for a residential sales agency agreement can be waived only if the agent gave the client the unsigned agreement and the approved guide at least one business day before the client signs, and the client signs the NSW Fair Trading approved waiver form before signing the agreement. Handing over the documents on the same day as signing does not meet the one business day requirement, so the waiver does not operate and the cooling-off period still applies.
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