Home Building Act 1989

This section applies to a contract for residential building work to which section 7BA applies.

If a contract does not contain a statement relating to the cooling-off period and a person’s rights under section 7BA (as required by section 7(2)(g)), a person (other than the holder of a contractor licence) may, by notice in writing, rescind the contract within 7 days of becoming aware that the contract should have contained such a notice.

The notice must state that the person rescinds the contract and must be given—

to the holder of the contractor licence personally, or

by leaving it at the address shown in the contract as the address of the holder of the contractor licence, or

by serving it on the holder of the contractor licence in accordance with any notice or service provision in the contract.

The notice must be given in the form approved by the Secretary, if any.

If a notice is given in accordance with this section the contract is taken to be rescinded from the time it was signed, but subject to the rights and obligations conferred by this section.

A contract can be rescinded under this section even if work has been done under the contract at the time of rescission.

If a contract is rescinded under this section, the holder of the contractor licence is entitled to a reasonable price for the work carried out under the contract to the date the contract is rescinded.

However, a holder of a contractor licence may not recover under subsection (7) more than the holder would have been entitled to recover under the contract.