A sale contract must include a warning statement. This statement advises the buyer:
- about the cooling-off period
- to get independent legal advice
- to hire an independent valuer.
You must include the following statement in the contract itself:
The contract may be subject to a 5 business day statutory cooling-off period. A termination penalty of 0.25% of the purchase price applies if the buyer terminates the contract during the statutory cooling-off period. It is recommended the buyer obtain an independent property valuation and independent legal advice about the contract and his or her cooling-off rights, before signing.
The statement must be:
- the exact words set out above
- obvious, clear and legible.
You must place the statement:
- on the same page that the buyer signs to execute the contract
- directly above the space for the buyer’s signature.
The buyer may cancel the contract without penalty if you don’t include this statement in the sale contract.