How to get your deposit back from a builder (NZ)
You paid a deposit, and then little or no work happened — or the builder went quiet. Getting that money back is possible, but it's easier the sooner you act and the better your records are.
In short
Ask for the deposit back in writing, setting out what you paid and what was actually delivered. If the builder refuses and the work hasn't been done, you can claim through the Disputes Tribunal for up to $60,000. Recovery is hardest if the builder has gone broke — then you join the queue as an unsecured creditor.
Step by step
- 1
Gather your evidence
Collect the contract or quote, invoices, proof of payment and all communications. A clear paper trail is what wins these cases.
- 2
Request a refund in writing
Email the builder stating the amount paid, what was delivered, and a reasonable deadline to refund. Keep it factual and keep copies.
- 3
Use the Disputes Tribunal
For claims up to $60,000 the Disputes Tribunal is quick and low-cost, and you don't need a lawyer. It can order the builder to repay you.
- 4
If the builder is insolvent
If they've been liquidated, register your claim with the liquidator — though as an unsecured creditor you may recover little. Check any trade-association guarantee.
- 5
Learn for next time
Keep deposits to no more than about 10%, insist on a written contract for work of $30,000 or more, and check the company's record before you pay anyone.
Your rights at a glance
- You can claim an unearned deposit through the Disputes Tribunal (up to $60,000)
- A written contract and payment records make recovery far more likely
- If the builder is liquidated you become an unsecured creditor
- Keeping deposits under ~10% limits your exposure next time
Where to get help
Before you sign with a builder, you can check the company against the public record: company status, licensing, insolvency notices and company history, from the official NZ sources. It takes about a minute.
Related questions
Sources: Building Performance (building.govt.nz); Disputes Tribunal NZ; MBIE — residential building contracts. General information for NZ homeowners, not legal advice. Every situation differs, so get professional advice for your circumstances. Last updated 2026-05.