Consumer Building Guide NSW – Paying a Deposit
Under NSW home building law, there is a maximum deposit that you can be asked to pay:
• If the contract price is $20,000 or less, you cannot be asked to pay over 10% of the contract price as a deposit.
• If the contract price is more than $20,000, you cannot be asked to pay over 5% of the contract price as a deposit.
If the work is required to be covered by home warranty insurance (which means the value of the work including labour and materials exceeds $20,000) it is illegal for the contractor to ask for a deposit or other payment under the contract unless a home warranty insurance policy has been taken out, and a certificate of the insurance is given to you.
Note: The loss of any deposit paid by a homeowner that exceeds the legal limit will not be covered by the home warranty insurance policy for the project.
Reference- NSW Fair Trading viewed 15/2/12, image source google
Como Building P/L, Michael Como provides in SYDNEY, an NSW Building Regulations Consultancy service that comprises, Interpretation of NSW legislation relevant to the construction of Class 1 and 10; Issuing: Complying Development Certificates (CDC), Construction Certificates (CC) [after a local council has approved a development], Occupation certificates (OC), Compliance Certificates, NCC Building Code Australia Reports. Engagement for the certification work is on a contract basis.
Also, a pre-purchase property inspection or building inspection by Michael Como may empower you with knowledge about the condition of a property currently or before you buy it and help you avoid future problems and unexpected costs. However, this service can only be conducted if the insurer is on-side, and currently, they are not and as a result, we do not conduct it.
Michael Como is Your Custom Home Builder in Sydney with over 46 years of construction experience, a Master Craftsman sharing innovative Restoration/renovation Ideas. Licensed since 1988. At this stage, I will only carry out building work at a contracted agreed hourly rate.
Let your imagination soar as you enjoy Building Green Homes or Straw houses or Hemp Homes or Heritage Style Restoration or Bathroom renovations or UHR or Digital twin or Sealing…. Etc.
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