VIC Non-Refundable Deposit

[Ixioncat]

Hi, and thank you for your advice. I wanted to build a carport on my property, and after some quotes I decided upon a company. Permits for such things are now not carried out through the council but by private contractors. Anyway, the company sent me a "pre contract deposit form" - this form advised me to fill in my details, and they provided the information for the independent building permit contractor within this form and a 10% deposit was asked for and my signature. The permit price was stipulated later by the independent building permit contractor through a separate email a day or so later, which I payed. Unfortunately, the council did not approve the placement of the carport, and so I have decided that I will wait and think about where else I may like to erect one or if to bother at all. After reading the "pre-contract deposit form" again, I realised there was an asterix next to the "10% deposit required ", that in tiny writing states "Deposit is non-refundable once permit application has been submitted". I do not understand how this can be legal when they have yet to carry out any construction or materials been bought as it was not even approved yet. Do I have any legal right to reclaim this deposit since the company have not had any monetary loses as of yet? Thanks

 

[Rob Legat - SBPL]

Well, you say they haven't had any 'monetary losses' yet. However, bear in mind that there needs to be a degree of work down to be able to submit an application for a building permit. The 10% deposit is likely to be in consideration for that work performed.