Browse Forums Building A New House Re: [VIC] First home buyer mislead by volume builder sales r 20Sep 17, 2021 10:27 am awkwajena [EDIT: title change] Hello h1 brains trust, This first home buyer is in need of your collective wisdom and advice. Grateful for anything you can share that could help me out of this. Long story short(ish): I purchased a specific lot (untitled) on the say-so of a volume builder to build a specific design of theirs on it. (God that sounds naive now I see it typed on a page.) Now, the developer won't approve the build I was assured by the builder was compliant, and will only approve the build if 1500mm (x9500mm) is chopped off/out of the build. I'm $1.5k in the hole to the builder for a build that is not what they promised, and that they should have known was not compliant from the start, but worse, i'm stuck with a block of land that will not fit the smallest 3br builds of now three volume builders I have approached. What can I do? What makes the most sense financially, and considering the 5months+ already put into this, that I can never get back? The long version: I started to put feelers out to builders earlier this year to get some idea of costs, timeframes, processes involved in building a new house, specifically as a single, first home owner. Given that I would be the only applicant on the homeloan, I wasn't even sure I was in a financial position to be approved for a loan. Once I had a vague idea how the whole thing works, knew I could service a loan, and what I could build for my intended budget having contacted various builders, in MAR2021 I chose and began working with a specific volume builder (B) who had a design I liked and who could facilitate finding land to build it on. On written advice from Bs sales rep (SR) I purchased the lot they recommended (titling late 2022) in regional Victoria. (APR2021) At the time of signing the land contract & paying land deposit (APR2021) B requested payment of $500 as initial deposit to prepare itemised build quote having already advised an estimated overall figure for the build and providing the proposed "compliant" siting plan. Subesquently, B then issued prelim quote with various upgrades/colour choices that had been costed and agreed, which I signed (APR2021), paying a further $1000 to move the build process forward and have the HIA contract drawn up said to take 4weeks. After chasing up twice, contract was finally issued almost 8 weeks later. (JUN2021) SR had told me, in writing, on multiple occasions since March that the proposed siting was compliant with D guidelines. Unconvinced I raised it directly with SR in writing at least twice, and even asked SR via email "why doesn't the proposed siting have to comply with D guidelines?" SR told me they "had read D guidelines" and it was compliant. At the eleventh hour, (second week of June 2021) still unconvinced that the build/siting was compliant, I contacted the developer directly seeking confirmation of relevant setbacks, and that Bs proposed siting was compliant. By this point SR had even at one point told me the build/siting was compliant with the Small Lot Building Code. I could not see anywhere in the land contract that said my lot - at ~315m2 - was designated as a small lot. On 29th June, having raised my concerns about compliance with D guidelines with a new contact at B, the new contact emailed to say they were in talks with D, and did not have a resolution but would advise me of outcome asap. Meanwhile SR is still contacting me wanting to 'go through/allay any final concerns' to get the HIA contract signed and "make sure I didn't miss out on extra 10k regional FHOG...." At this point, I told SR that I wasn't going to sign because I wanted the contract looked at by a lawyer/conveyancer to protect my interests/do my due diligence and would rather lose the 10k regional FHOG than run the risk of signing and have it cost me more in the long run becasue of something I overlooked. On 30th June, the last day to have contract signed to be eligible for regional FHOG and after weeks of chasing up an outcome, D rejected Bs siting as being non-compliant with D guidelines, and stated they will only approve the build if over 1500mm is cut from the length to comply with setbacks per D guidelines. (D guidelines are more onerous than council/standard in this.) We're talking here about reducing a 15.Xm build length to under 14m, reducing internal space by something like 1500mm*9500mm. Fast forward to this week, an email arrives from a new rep from B - a customer relationship guru (RG) - with new drawings and telling me (SURPRISE!) that they have to reduce the size of the build to comply with D guidelines, and if I can let them know I'm happy with the changes they'll go ahead and reissue the HIA contract, with credit for reduction in floorplan. ARE. YOU. KIDDING. ME?! I didn't reply because, just WTF. RG then calls me a couple of days later to ask whether I received his email and if I was happy to go ahead with new changes like everything is just peachy. I would have screened his call if i'd known it was him because how do I even begin to address this? B knows I told them that I was worried it wasn't compliant but they've just pretended like it's nothing, like it's news to them. So, put on the spot I told RG that I don't want the changes, that I only purchased the block because SR told me to, and told me repeatedly the builld was compliant, despite my questioning it and now here I am stuck with this land that two other builders can't fit their smallest build on it, and have no idea how to move forward with any of it. RG listened like it was all new to him, said he could understand that I didn't want to reduce the size, but there was really no other option. RG said would pass my decision on to his manager to see if another solution could be found, would let SR & their manager know too. I told RG (now realising that doing so was probably a mistake) that D said they may consider allowing me to effectively exchange my lot, for a fee, and obviously for the difference in price of the land, and that the price point of a new lot the same size as my currenyt one is looking like being at least 50k on top of the price I paid for mine. Maybe that will end up being the least bad option? I can never get the last 5 months back in terms of equity (I doubt D will re-value the lot in my favour,) or the 9 months (and counting) difference between the projected titling dates. After hanging up, for good measure, I forwarded RG the emails from SR evidencing the times SR had told me the build/siting was compliant and I had nothing to worry about. I honestly thought that it would spark a bit of an "oh f.ck" moment for RG & people up the chain, and that I would have someone important from B writing me to apologise and acknowledging that SR f.cked up, that it has put me in this position, and at the very least offering to refund my deposit, no questions asked. Naively I thought they might even offer to cover the admin/contract fees for changing lots, or offer to throw in a few extra upgrades or something if I stayed with them. Nope! SR emailed me later the same day or maybe it was the next(?) to say RG had passed on that I don't approve of and won't proceed with the proposed changes. SR wrote that they can understand that I don't want to reduce the size of the build and like water off a duck's back, essentially put the fault on D saying "it's unfortunate that D won't bend their rules." No ownership of the f.ck up, no acknowledgement that they gave me the wrong information - repeatedly, no apology, no solution, nothing. And to add insult to injury, SR had the gall to ask me if i'd agreed on a new lot with D yet, and to let SR know asap once I know the new lot price so SR can get the broker to call me to re-evaluate my borrowing capacity. !?!? If you've made it this far into my situation/rant, thanks for sticking it out. What should I do? Hi awkwajena One option is, you could sell the land and look to build your dream home elsewhere. Cheers, John Get sound legal advice. We manage Building Disputes, Construction Contracts, Security of Payment. PM for queries. https://www.contractsspecialist.com.au/articles/ i did click it, still couldnt make it out rofl. in any case, doesnt look like too extreme a slope, you may be in luck. Just shoot out some emails to volume builders in… 3 18563 go upvc window frames ensure insulation under colorbond. not just sarking, lighter color roof also not sure if you have seen this viewtopic.php?t=5823 last couple of pages… 4 110566 Hi, Seeking volume or semi-custom builder in victoria(east), which have existing double story wide floor plans. Seeking 18-20m wide homes with depth of 12-15m long. Or… 0 25163 |