DEPOSITS, COOLING OFF PERIODS & CAVEATS
Builders may only request a limited amount of deposit prior to commencing the constructions of your home. A builder cannot request more than 5% of the Domestic Building Contract price where the contract price is over $20,000 and more than 10% of the contract price where the contract price is less than $20,000. The builder is also not permitted to accept deposit monies from you prior to providing you with a copy of the relevant insurance.
4.1 Cooling Off Period
You can withdraw from your Domestic Building Contract usually 5 days after you have received a copy of the executed contract. If you wish to withdraw from the Domestic Contract you must serve a written notice to the Builder in accordance with the terms of the Domestic Building Contract. It is important that you provide the builder with the correct notice within the time constraint. We would advise that you seek legal advice from a solicitor who specialises in Building Law prior to the expiry of the cooling off period to ensure that you have complied with the law when exercising your right to withdraw from your Domestic Building Contract.
Once you have exercised your right correctly to withdraw from the Domestic Building Contract, the Builder must refund your deposit less $100 ((and/or out of pocket expenses that has been incurred and agreed upon by you).
You are not entitled to a cooling off period if you have obtained legal advice prior to executing your Domestic Building Contract. Where the builder has failed to provide you notice of the mandatory cooling off period you are then provided with a 7 day cooling off period from the date you noticed that your Domestic Building Contract did not have contain the notice.
The Builder has no right to place any condition in your Domestic Building Contract which allows him to place a caveat on your land to secure his interest. If such condition is placed in your Domestic Building Contract it is void. The Builder cannot secure his interests in such manner but he may seek evidence from you of your capacity to pay the Contract Price, written guarantees from third parties of your obligations pursuant to the Domestic Building Contract.
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