NSW Australian Consumer Law - Time-bound Deposit Terms Legal?

[PATRICK O'DONNELL]

Hello,

I am purchasing a fibreglass swimming pool shell on a supply only basis. I will get my own installer to install the pool. The pool shell company terms are that I must first put down a $2,000 deposit, at which point, they will provide me with engineering drawings and other compliance certificates for the pool which are required for me to obtain my council consent to install the pool. The deposit is fully refundable if my council consent is declined. This is all very reasonable.

Once I have my council consent, I will then order the pool, pay the remaining amount and the pool will be delivered.

However, the terms also state that if I do not order a pool within 6 months of placing the order and paying the deposit, my order will be cancelled and the deposit not returned. Is this legal under Australian Consumer Law?

 

[Rod]

Can't see anything wrong with it.

They'll have done work and should be compensated for their time and effort in dealing with you (providing drawings, certificates etc). Though I have no way of knowing if it is $2,000 worth of work.

 

[Clancy]

The catch is that there is no protection for the buyer verses how long the council takes to approve/not approve the pool. If the council takes six months, you lost your deposit!

Clever scam actually, I tip my hat to them!

 

[PATRICK O'DONNELL]

The catch is that there is no protection for the buyer verses how long the council takes to approve/not approve the pool. If the council takes six months, you lost your deposit!

Clever scam actually, i tip my hat to them!

I don't believe it is a scam. My friend bought a pool from them, she said they were excellent. Council approval takes 4-6 weeks not 6 months, so I don't think that is a driver. And you get your deposit back if council rejects your application, which is fair. I'm just a bit more curious than my friend, hence the question.

To be fair, if you pay a deposit and then don't do anything for 6 months, you have probably had a change of mind, and as we know, with change of mind, you are not entitled to your money back. Perhaps that is the reason.

 

[Clancy]

Council approval takes 4-6 weeks not 6 months

Sounds nice, but whatever happens council, the pool company is safe