Victorian Consolidated Legislation

Introduction Agents Act 1997 - SECT 27

Restriction on prepayments

27. Restriction on prepayments



(1) An introduction agent must not demand or receive, before any part of an
introduction service is provided, an amount that is more than 30% (or any
other percentage fixed by the regulations) of the price at which the agent
agrees to provide the service.

Penalty: 300 penalty units.

(2) If an introduction agent does not comply with subsection (1), the person
with whom the agreement was made may avoid the contract at any time before it
is completed.

(3) However, subsection (2) does not apply if the Magistrates' Court believes,
on the application of the agent, that it would be unfair in the particular
circumstances of a case for the person to do this.

(4) This section does not apply to an introduction agreement if-

   (a)  the amount that is to be paid under the agreement is $200 (or any
        other amount fixed by the regulations) or less; and

   (b)  the total of that amount and all amounts that the person entering into
        the agreement with the introduction agent paid, or became liable to
        pay, the agent in respect of any other introduction agreements-

   (i)  in the 30 days immediately before the date the agreement was signed is
        $200 (or any other amount fixed by the regulations) or less; and

   (ii) in the 12 months immediately before the date the agreement was signed
        is $1000 (or any other amount fixed by the regulations) or less.