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.
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