Guide to cancellation of contract regulations

THE CANCELLATION OF Contract Regulations (CCRs) came into force in October 2008, but there is still a lack of understanding of their implications. Trading Standards enforce the regulations and any offence carries a fine up to £5,000. The regulations are clear. If the contract to engage an agent’s services is signed by the consumer away from the agent’s premises, there is a seven day cancellation period in which the consumer can decide not to proceed. Cancellation rights still apply where the consumer enters the contract as a result of the visit but signs at a later date. The regulations apply to sales and lettings agents where contracts allow them to sell a property or find a tenant and/or let a property. When the contract is made, the agent must give the consumer written notice of their right to cancel within the cooling off period. Regulation 7 of the CCRs specifies the information that must be in the notice: • the identity of the trader including trading name (if applicable) • the trader’s reference number, code or other details to identify the contract • a statement that the consumer has a right to cancel and that this right can be exercised by…

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