ACAT awards $17,754 to buyer over modular home's winter chill

The buyer claimed breach of contract, breach of the consumer guarantees under the Australian Consumer Law that goods be reasonably fit for purpose and that services be delivered with due care and skill, and misleading or deceptive conduct. Region says the claim was capped at $25,000.

The supplier, AJC Portable, a NSW-based company, argued the home matched the contract specifications, that its salesperson made no misrepresentation, and that the buyer alone was responsible for getting advice on Canberra building approval requirements.

The numbers

According to Region, the tribunal found the buyer reasonably relied on the supplier’s skill and judgement, and that the home was intended as a habitable residential dwelling.

• Compensation awarded: $17,754, set against the cost of bringing the building up to a 6-star rating.
• Rating required at the time: 6 stars. Region says the requirement is now legislated at 7 stars.
• Window upgrade: UPVC windows cost $26,900, and the award was based on two-thirds of that figure.
• Expert evidence: Region reports an expert witness said UPVC windows would lift the rating to 6.7 stars.

Region also reports the tribunal found the supplier had not breached the contract or engaged in misleading or deceptive conduct. The award rests on the consumer guarantee findings described above, so the buyer succeeded on that part of the claim only, as Region reports the outcome.

What’s next

Modular and prefabricated housing is under policy attention elsewhere too: see the Tasmanian modular housing finance guarantee bill for a separate state-level move.

Region’s report does not say whether either party will appeal or whether the home will be retrofitted. The suburb is not named in the report, and The Australian Developer has not seen the tribunal decision itself, so the details above are as Region reports them.