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Who pays the penalty fee?

Where a buyer terminates the contract during the cooling off period, the buyer may have to pay a penalty fee (25% of the purchase price) if a deposit has been paid. If no deposit has been paid, then there is no penalty fee payable and neither the buyer nor the real estate agent is required to pay any money to the seller. Where a deposit has been paid and a penalty fee is deducted from the deposit, the penalty fee is half paid to the seller with the other half being paid to the real estate agent.

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