Victorian Current Acts

DOMESTIC BUILDING CONTRACTS ACT 1995 - SECT 11

    (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.

S. 11(4) amended by No. 15/2016 s. 10(1).

    (4)     However, subsection (3) does not apply if VCAT 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.