Cooling-off period for introduction agent contracts
The law says that you must give all of your clients a 3 business day cooling-off period. During this time, your clients can change their mind about the agreement.
If your client cancels during the cooling-off period:
- you must refund all of the money they have paid—less a cancellation fee
- refund within 7 days of receiving their notice.
You face penalties if you break the law.
You can charge a cancellation fee if the client cancels in the cooling-off period.
The cancellation fee cannot be more than $50 or 10% of the contract price, whichever is less.
Your agreement can have an opt-out clause.
If your client doesn’t end the agreement by the opt-out date, the client automatically begins a new introduction agreement. The new agreement is for the balance of the term of the original agreement.
We recommend you speak to a lawyer when you write your contracts.