Introduction agents have legal obligations related to introduction agreements.
The introduction agreement must be legible and provided in English.
It must begin with ‘Important Notice’ in a minimum 14-point bold font, and contain all the terms of the agreement, including:
- a statement of the client’s right to cancel the agreement within three business days – see the text in Schedule 2 of the Australian Consumer Law and Fair Trading Act 2012
- names and contact details of the parties to the agreement
- a full description of the service, including the terms under which it will be offered
- the price of the service and payment method
- a notice in 12-point bold font stating that the introduction agent cannot demand or receive more than 30 per cent of the agreed price upfront before providing the service, unless:
- the amount to be paid is $1000 or less
- the total to be paid under the agreement, plus all amounts payable under other agreements between the introduction agent and the client is:
- less than $1000 in the 30 days before the agreement is signed, and
- less than $5000 in the 12 months before the agreement is signed.
- the agreement period and conditions under which refunds will be made.
It is an offence not to comply with these requirements. You and your client must sign the agreement.
If the client changes their mind, they can withdraw from the agreement by giving you written notice within three business days (that is, three days when your agency is open for business) of signing.
You must refund all money paid within seven days of receiving the notice, except for $250 or 10 per cent of the agreement price - whichever is less.