7BACooling-off period: person may rescind a contract for residential building work within 5 days without penalty

7BA Cooling-off period: person may rescind a contract for residential building work within 5 days without penalty

7BA Cooling-off period: person may rescind a contract for residential building work within 5 days without penalty

(1A) This section applies to a contract only if the contract price exceeds the prescribed amount or (if the contract price is not known) the reasonable market cost of the labour and materials involved exceeds the prescribed amount. The prescribed amount is the amount prescribed by the regulations for the purposes of this section and is inclusive of GST.

(1) A person who contracts with the holder of a contractor licence for residential building work to be done by the holder of the contractor licence may, by notice in writing, rescind the contract—

(a) in the case of a person who has been given a copy of the signed contract—at any time before the expiration of 5 clear business days after the person is given a copy of the contract, or

(b) in the case of a person who has not been given a copy of the signed contract within 5 days after the contract has been signed—at any time before the expiration of 5 clear business days after the person becomes aware that he or she is entitled to be given a copy of the signed contract.

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

(a) to the holder of the contractor licence personally, or

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

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

(3) If a notice is given in accordance with this section—

(a) the contract is taken to be rescinded from the time it was signed, but subject to the rights and obligations conferred by this section, and

(b) the holder of the contractor licence may retain out of any money already paid to the holder the amount of any reasonable out-of-pocket expenses the holder incurred before the rescission, and

(c) the holder of the contractor licence must refund all other money paid to the holder under the contract by (or on behalf of) the party who rescinded the contract at or since the time the contract was made, and