37Rights and obligations of parties following withdrawal in cooling-off period

37 Rights and obligations of parties following withdrawal in cooling-off period

(1)  In this section –

pre-paid amount, in relation to a contract, means the amount paid to the building contractor under the contract by the owner before the owner withdrew from the contract;

retainable amount, in relation to a contract, means the sum of –

(a) $100; and

(b) an amount equal to any out-of-pocket expenses reasonably incurred in relation to the contract by the building contractor before the owner withdrew from the contract.

(2)  This section applies if an owner withdraws from a residential building work contract under section 33 .

(3)  If there is a pre-paid amount for the contract that is not less than the retainable amount, the building contractor –

(a) may keep an amount equal to the retainable amount out of the pre-paid amount; and

(b) must refund any balance of the pre-paid amount to the owner.

(4)  If there is a pre-paid amount for the contract that is less than the retainable amount, the owner must pay the building contractor an amount equal to the difference between the retainable amount and the pre-paid amount.

(5)  If there is no pre-paid amount for the contract, the owner must pay the building contractor an amount equal to the retainable amount.

(6)  If an amount is not paid by a person as required under this section, the person to whom it is payable may recover the amount from the other person as a debt.

(7)  Except as provided under subsection (4) or (5) , the owner is not liable to the building contractor in any way for withdrawing from the contract.