Victorian Consolidated Legislation

Domestic Building Contracts Act 1995 - SECT 11

Limit on amount of deposit

11. Limit on amount of deposit



(1) A builder must not demand or receive a deposit under a domestic building
contract of more than-

   (a)  5% of any contract price that is $20 000 or more;

   (b)  10% of any contract price that is less than $20 000-

before starting any work under the contract. Penalty: 100 penalty units.

(2) For the purposes of subsection (1), the Governor in Council may make
regulations fixing a higher dollar amount than that referred to in subsection
(1).

(3) If a builder does not comply with subsection (1), the building owner may
avoid the contract at any time before it is completed.

(4) However, subsection (3) does not apply if the Tribunal believes it would
be unfair in the particular circumstances of a case for a building owner to do
this.

(5) If a court finds proven a charge under subsection (1) against a builder,
it may order the builder to refund to the building owner some or all of the
amount the building owner has paid the builder under the contract.

(6) This power is in addition to the power the court has to impose any other
penalty.