On Monday morning an agent hands a vendor the proposed residential agency agreement and consumer guide, and the vendor signs both a cooling-off waiver and the agreement that afternoon. Is the waiver effective?
Correct Answer
B) No, the documents had to be given at least one business day before signing
Under s 59(5) of the Property and Stock Agents Act 2002 there is no cooling-off period only if the agent gave the client the proposed agreement (and, for residential land, the approved consumer guide) at least 1 business day before signing, and the client signed the approved waiver form before signing the agreement. Handing the documents over the same morning fails the first condition, so the cooling-off period still applies.
Why This Is the Correct Answer
Both conditions must be met, and giving the documents on the same day as signing does not satisfy the one-business-day lead time.
Why the Other Options Are Wrong
Background Knowledge for Agency Practice
Exam Tip for Agency Practice
Common Mistakes to Avoid on Agency Practice Questions
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