Wondering whether you have had encountered difficulties with Banks refusing a loan for constructing a house in response to clause 22 in a HIA build contract. The clause states that “The builder is not required to obtain any certificate Of occupancy or final inspection certificate relating to the building works.” We put this to the builder and he responded as as below in red text - last para starting with “This is a standard HIA industry contract……….”
How did you resolve this? Did your Bank accept your explanation?
Thanking you in anticipation.
I think we did discuss that the Builder needed to get to the occupancy certificate stage as part of the contract and seems they have put this in the contract which is now causing us issues. Not sure what the Builder can do with this clause but we will have the same issue with any lender that we go to.
It may be a case of speaking to the Builder and finding out what can be done with this clause.”
This is a standard HIA industry contract, I'm suprised the bank has not dealt with this prior. We provide all certifications based on our contract for the build completed at handover for your OC however an OC is given to Home Owners once the driveway and required landscaping is completed. We are unable to arrange the final OC given we do not compelte the driveway, landscaping and other requirements outside of our contract.