Browse Forums General Discussion 1 Jun 11, 2009 4:40 pm The scenario is - had preapproval from bank but new home as per HIA standard contract overvalued by builder and unable to get finance. Even their own "broker"couldnt swing it ! Did not give them notice as per contract as were still waiting for bank to get back us after 14 day period expired. Paid 5% deposit and we would like to exit from the contract and have the balance of our deposit refunded (less itemised expenses). Builder says ïts like a marriage with no divorcë"and is trying to hold us to the contract, calling and harassing us, telling us we will have to sell our land to compensate them for loss of profit etc Has anyone in this situation got an advice about remedies we can seek ? Saw a solicitor but did not provide us with any concrete advice. We would like to go to VCAT but under the Civil Claims section rather than the Domestic Building List as its a cheaper easier process. Has anyone done this whot may have advice for us. Basically our position is that we did our best to obtain finance and could not do so - got an independent valuer who supports the bank valuation. Want nothing to do with this builder anymore they are rip off merchants and bullies to boot. The fact that they were to pesky during the finance approval stages suggests to me that they might have cash flow problems..... Any advice would be much appreciated. Re: Valuation too low nasty builder - is VCAT an option ? 2Jun 11, 2009 9:43 pm I would say kiss your 5% goodbye and walk away as a life experience. If the builder still hassles you, direct them to only communicate with your solicitor.( I would most likely say they will move on then as you already should) Cheers Cozmo ______________________________ Building a PD Heywood 29 http://fromevetoeternity.blogspot.com/ Re: Valuation too low nasty builder - is VCAT an option ? 3Jun 12, 2009 4:02 am We had a similar situation where we had pre-approval but then because of the location of the land and how we structured our loan couldn't get mortgage insurance. Despite being told repeatedly (verbally) by the builder that yes everything was subject to finance, they tried to hold us to the contract... and said we still should have built with them but on a different piece of land. We got a big-city contracts lawyer involved and got some of our deposit back but most of this was then taken by the lawyers fees. In the end we lost about $5000 out of the $7500 we paid as a deposit. I know it's very hard to take but trust me the least stressful option is kissing the 5% good bye. After 2 false starts, a year living overseas, two more world trips and 3 years of uncertainty we are now starting the build process again - hopefully for real this time! Re: Valuation too low nasty builder - is VCAT an option ? 4Jun 12, 2009 5:37 pm Hi all We would be quite happy to walk away and lose our 5%, problem is that they are threatening to force us to pay the full amount ($300,000) regardless. THey reckon they can do that. We want to go to VCAT to state our case - rather than an expensive court battle. Re: Valuation too low nasty builder - is VCAT an option ? 5Jun 12, 2009 6:23 pm hi Keokie Quite a few people find themselves where you are. It is a really unfair situation. I was told by my builder when I signed it that if we didn't get finance we did not have to go ahead, and that was HIA rules... I don't know if that is true. I seriously suggest to speak with a lawyer to find out where you stand, especially as it may depend on which state you live in too. Therefore people on this forum may not offer advice that is necessarily applicable to you. You could ring the Legal Aid office in your state, that is free and they have a service where you can go in person, with your contract too. You should get advice before going to VCAT tho, because you may be wasting your time. But I think you will find that you can exit, you just need advice on how to best do that. Good luck Annie A thankful person is a happy person. [/color]My hobby design blog: http://aviewondesign.blogspot.com/ Re: Valuation too low nasty builder - is VCAT an option ? 6Jun 20, 2009 7:13 pm Given you have paid a deposit and it is the builder who is up for the loss/cost, I would have thought it would be the builder who takes YOU to VCAT to recover the money that you (apparently) owe them. I'd wait for them to take action rather than you taking pre-emptive action, other than getting legal advice of course. Re: Valuation too low nasty builder - is VCAT an option ? 7Jun 20, 2009 7:19 pm koekie Hi all We would be quite happy to walk away and lose our 5%, problem is that they are threatening to force us to pay the full amount ($300,000) regardless. THey reckon they can do that. We want to go to VCAT to state our case - rather than an expensive court battle. They haven't got a hope... how on earth could you fund the outcome if they won when you can't finance the house? This is a frustrated contract... let them take you to court... they won't. Record the date time and content of every call from them, then s end a letter telling them you will sue for harassment and you want your deposit back (that may not be easy but you will give them a fright). Who is the builder? Ed "ECOECO" At 'EcoEco', we design windows, we design the best windows, we do it for you, so that when you’re happy we are happy. Tel. 1800 326 326 Re: Valuation too low nasty builder - is VCAT an option ? 9Jul 18, 2009 7:51 pm You can also ring consumer affairs for free advice. They are familiar with the HIA contract (They actually have an automated messgae that puts you through to that department). I know this because I have had to ring them. If you are in Victoria the number is 1300 55 81 81. Good Luck Re: Valuation too low nasty builder - is VCAT an option ? 10Jul 19, 2009 9:13 am I also recommend as above that, if you haven't already, you should contact Consumer Affairs Victoria. After that, you should seek additional legal advice. The Law Institute of Victoria has a referral service and you are entitled to 3 referrals to 3 different firms regarding the same matter - I would not see just the one lawyer in this case...3 heads are definitely better than one IMO. You might choose to 'employ' one of these lawyers to prepare and send a letter to your builder formally outlining your issues and complaint(s). Then go to VCAT if it comes to that. Good luck. I know the headache you are having at the moment...not fun Re: Valuation too low nasty builder - is VCAT an option ? 11Jul 19, 2009 10:11 am I can't see any way that they can make you pay the $300k, maybe if they had started building or had built you the house and then you had not paid (which is impossible anyway). But as it stands now it's a bit like leaving a deposit for something you want to buy, say you're buying a car privately, if you change your mind for no reason well the seller would have the right to keep your deposit and the car, right? With building however it would be a little different, you may be entitled to part of your deposit back, I know here in WA the initial deposit if primarily paid to cover initial costs and fees (soil test, survey of site, council approval etc), so at best you may be able to fight to get back whatever portion of your deposit is as yet unused. Because realistically what has it cost the builder so far? And it's not like you changed your mind for no reason, the contract would be subject to finance and you did your best. So good luck and find out if the builder is in their right to keep your entire deposit or if you have a case of getting at least part of it back. At 300k I'm guessing they have 30k, that's a fair whack of money that I know I wouldn't be happy to walk away from. Re: Valuation too low nasty builder - is VCAT an option ? 12Jul 19, 2009 6:23 pm What loss of profit exactly? Sounds like the builder has no idea of contract law and are trying to bluff you. Good luck to them trying to find a lawyer to take on their case to chase you for the full amount. Anyway, they can't/won't chase you for $300k if you don't have it and the law of contract prevents them anyway. If you would find it beneficial, see if you can find some reading on basic contracts and have a look at option/deposits and how they work. You will be happy with what you read! Thanks! I'm spoke to the builder I'm not sure if this is all true but basically went along the lines of they considered all options and if I was to compact and fill it… 2 7304 Hi, I'd like some advice on the best option please on the estimate options we've been provided from our builder. This is for the… 0 4066 Newbie question for flooring options. We are thinking of changing the flooring for bedrooms and passage area. Last time we looked at flooring options was almost 8years… 0 3519 |