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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.

Cancellation fee

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.

Opt-out clause

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.


Introduction agents must obey a range of laws and regulations. These include:

Last updated
30 June 2017
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