HOME BUILDING CONTRACTS ACT 1991 - SECT 25J
HOME BUILDING CONTRACTS ACT 1991 - SECT 25J
25J . Contracts with builders, builders to give prescribed notice to other party
(1) In this section
—
specified period means a period specified in an
order made under section 25I for the purposes of section 25C(3).
(2) A builder must
not, during a specified period, enter into a building contract or sale
contract in respect of residential building work unless the builder has given
the other party to the contract a notice in the form prescribed by the
regulations.
Penalty: $10 000.
(3) A builder must
not, after the end of a specified period, enter into a building contract or
sale contract in respect of residential building work performed by the builder
under a building permit granted before or during that specified period unless
the builder has given the other party to the contract a notice in the form
prescribed by the regulations.
Penalty: $10 000.
(4) A failure to
provide a notice in accordance with subsection (2) or (3) does not, of itself,
invalidate a contract.
(5) If —
(a) at a
time that is not during a specified period, a builder enters into a building
contract or sale contract in respect of residential building work; and
(b) a
specified period commences before a building permit for the residential
building work is granted,
the builder must give
the other party to the contract a notice in the form prescribed by the
regulations as soon as practicable after the specified period commences.
Penalty: $10 000.
(6) If the party to
whom a notice must be given under subsection (5) is not a developer, the party
may rescind the contract.
(7) To rescind the
contract, the party must give notice of the exercise of the right to rescind
to the builder before the earlier of —
(a) the
expiration of one month after the day on which the notice referred to in
subsection (5) is received by the party; or
(b)
settlement (in the case of a sale contract) or practical completion (in all
other cases).
[Section 25J inserted: No. 37 of 2002 s. 17;
amended: No. 24 of 2011 s. 163(8) and (9).]