Browse Forums Building A New House 1 Sep 16, 2020 1:08 am Hi Homeone members, I signed a house and land package last month with the developer based on sale of my current house and paid the developer a deposit for land. I then signed the Preliminary Work Agreement with the builder (one of Master Builder's members) and paid a deposit of $7k. My current house is not able to sold at the expected price now and I have to cancel the deal. The developer is happy to terminate the contract and return my land deposit. However, the builder refused to return any deposit. $7k is a lot of money nowadays! I have screenshot some parts of the agreement below. Can someone please help! >w< much appreciated. some points: - the agreement named me as "owner" while I am not officially? - It says not refundable... - I did wrote subject to Finance approval, so if Finance is not approved, can I claim it back?? - last paragraph in the Annexure says builder should not commerce work before my sale of my house is finalised. So they can't charge me actual costs? Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Re: when cancelling Preliminary Work Agreement, can fee/depo 2Sep 16, 2020 8:44 am You should contact a legal expert in Property Law, to really understand what chance you stand. As a layman, #15 clearly states you get no refund, unless the builder is at fault. For subject to financial clause, I assume you need the evidence from a financial institution that you failed to secure a loan. Also, you're the deemed owner when you enter into agreements/contacts with a builder. Re: when cancelling Preliminary Work Agreement, can fee/depo 3Sep 17, 2020 1:18 pm KameGame You should contact a legal expert in Property Law, to really understand what chance you stand. As a layman, #15 clearly states you get no refund, unless the builder is at fault. For subject to financial clause, I assume you need the evidence from a financial institution that you failed to secure a loan. Also, you're the deemed owner when you enter into agreements/contacts with a builder. thank you for your advice. I am unsure about the clause on the sale of current property. I will properly seek property lawyer advice then. Thanks! Re: when cancelling Preliminary Work Agreement, can fee/depo 4Sep 17, 2020 7:25 pm Im sorry to say I think you will face an uphill battle. I do work for a builder and we always make it clear to the client that this is a non-refundable fee even if the building doesn't go ahead. The 7k is a bit stiff IMO, we take a 3k deposit In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4786 Hi All, We signed a prelim agreement last year (May 2022) and paid deposit to a builder. However, we didn't go ahead with them and never signed a contract. We ended going… 0 2282 You need to respond to the Builder within 10 business day advising of your rejection of claim as per SoPA on a payment Schedule, Do not miss this deadline. 3 7228 |