Browse Forums General Discussion 1 May 10, 2010 10:17 am Hey guys, Just after some advice - not sure where I should go with this! We were told by the developers originally that land would be ready in July. Alas, it isn't going to be -will be ready for titles in October, bulding November. Pain, but no real drama. We've placed a deposit with a builder indicating we'd like to build with them, but haven't actually signed any contracts. They've advised me that we should sign our contract the first week of July, as they're set to raise prices in July but happy to keep our existing price if we sign in the first week of the month. I understand we need to commence building six months after contracts for first home owners.... so slightly concerned if land isn't actually ready by November as promised. Could there possibly be any issues with signing contracts now but not building until then? Is there any reason why I should be a bit concerned? We're new to this, and i'd really, really love to hear anyone's thoughts on our situation. Thanks so much in advance. Re: land delayed: contract implications - need some advice! 2May 10, 2010 10:22 am If for any reason you can't start building within 6 months of signing the contract, you are able to apply for an extension - providing the delays were not caused by you. We were lucky that I got onto our builder when I did, our slab got poured on the very last day of the 6 months - if it had of been the next day, we would need to apply for the extension. Re: land delayed: contract implications - need some advice! 3May 10, 2010 1:41 pm There have been numerous people who have had their titles delayed again and again so the the new proposed month of October is not guaranteed. Accordingly, I would be surprised if the builder is obligated to hold the prices even though the delay is not caused by you. Do you have a copy of the contract? If so have you read the section carefully relating to price increases? Don't get confused where other people have had FHOG's extended due to delays in titles. If you are only talking about the contract with the builder then you need to refer to that contract. If there is some protection in the contract due to delays in the land titling, also make sure that you have it in writing from the developer when the titles are supposed to occur so that you have proof that this was the delay. Re: land delayed: contract implications - need some advice! 4May 11, 2010 10:21 am that's the issue - we haven't signed a building contract, merely placed a deposit with them indicating we intend to build with them. Re: land delayed: contract implications - need some advice! 5May 11, 2010 10:47 am If you've only placed a deposit with the builder then it's most likely you will have to pay any increases in price of the house you've chosen which occur between now and whenever you start to build. Some builders do "lock in" a price when you pay a deposit but that's unlikely to remain in place for months at a time. For obvious reasons a builder cannot guarantee that a home will remain at a particular price indefinitely. I'd have a look at your contract when you get it; that will usually indicate the date that the builder proposes to start construction and that is the date that the contract price is guaranteed until. In my case I signed a contract for land and house in September '09 (in order to take advantage of the high FHOG), land was meant to be titled by December and that's when my builder guaranteed the price until. Unfortunately the land was not actually released until early April 2010 (4 months late). There had been an increase in the cost of the house I have chosen to construct however my builder was nice enough not to pass that on to me. Then of course there's the whole FHOG extension debacle (as you have to have completed the foundations of the home within 26 weeks of signing contracts in order to get part of the FHOG) but that's a topic for another thread.... Good luck Re: land delayed: contract implications - need some advice! 6May 11, 2010 10:51 am My builder would only keep the price for 6 months from the date of the initial order, then there was a schedule for the increases for each month after. Some people don't have time to do the job right the first time, but seem to have plenty of time to fix their mistakes. Build Thread Re: land delayed: contract implications - need some advice! 7May 11, 2010 11:46 am Hrmm... cool, thanks guys. I think they're going to be nice enough and hold the price for us until October. But if it gets delayed any further, they'll pass on the increase. Will keep you posted! Thanks so much again. Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5320 Thank you so much for the effort. We will use it to talk with builder. We also had idea of building duplex instead and seeking suggest ions. viewtopic.php?f=31&t=106744 11 13817 Hi VK, I am now retired however I have stood beside over 300 owner builders in the past 18 years that have successfully built their own homes. First of all a building… 10 22606 |