Warning statement for property sales

A property sale contract must include a warning statement advising the buyer:

• about the cooling-off period
• to seek independent legal advice
• to hire an independent valuer.

You must include the following statement in the contract:

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 (or words to the same effect) and 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.

If you don’t include this statement in the sale contract the seller or seller’s agent who gave the contract to the buyer will be committing an offence and may face a large fine or prosecution.