Victorian Consolidated Legislation

Domestic Building Contracts Act 1995 - SECT 34

Building owner may end a contract within 5 days without penalty

34. Building owner may end a contract within 5 days without penalty



(1) A building owner may withdraw from a major domestic building contract at
any time before the expiration of 5 clear business days after the building
owner receives a copy of the signed contract.



(2) To do this, the building owner must within that time-

   (a)  give the builder; or

   (b)  leave at the address shown as the builder's address in the contract;
        or

   (c)  serve on the builder in accordance with any notice or service
        provision in the contract-

a written notice signed by the building owner that states that the building
owner withdraws from the contract.

(3) If a building owner withdraws from a contract under this section-

   (a)  the builder may retain out of any money already paid to the builder
        $100 plus the cost of any other out-of-pocket expenses the builder
        incurred before the withdrawal with the approval of the building
        owner; and

   (b)  the builder must refund all other money paid to him, her or it under
        the contract by (or on behalf of) the building owner on or since the
        time the contract was made; and

   (c)  the building owner is not liable to the builder in any way for
        withdrawing from the contract.

(4) A building owner cannot withdraw from a contract under this section if-

   (a)  the building owner and the builder have previously entered into a
        major domestic building contract that is in substantially the same
        terms for the carrying out of work in relation to the same home or
        land; or





   (b)  the building owner received independent advice from an Australian
        legal practitioner (within the meaning of the
        Legal Profession Act 2004) concerning the contract before entering
        into the contract.