Building Contract - Questions!

Hi everybody!

Our land titles have been issued, we have settled on the land, we now have our building contract ready to be signed with plans etc... We are yet to do our pre start meeting.

Now, my question is, is there any rush to sign the papers?! I know we have to sign them within 3 weeks (21 days) of the contract date, but our builders sales rep is making out like there is some sort of urgency to get them signed and a copy sent to our lender (Westpac) so we can get the First Home Buyers Grant?

As long as this contract is signed before Sept 30, I dont see the rush?

Also, on the building contract plans, we want to change a couple of windows to Highlight windows etc.. and move the garage door over a little bit (we extended the garage width), the sales rep said thats no problem and it can be done at pre start. But the problem is we have the building contract here to be signed BEFORE pre start (which is in 3 weeks time).

I'm confused! Please help!

Thanks!


Josh.

Personally I would like to know the total cost of the project before I singed the contract. Once you sign you can't go back - so what do you do if they try to overcharge on your alterations?

That said, my guess is that their intentions are probably honorable because banks do take their sweet time these days. After we signed our contract the bank took almost a month to get the loan sorted

Thanks for the reply!

So as long as we sign the building contract before Sept 30, we will receive the First home buyers grant? (We are eligible to receive it). Or is it subject to something else?


Thanks again!

i have to agree with vb - your builder is probably just very aware of how long your bank will actually take to prepare loan docs etc and would like to keep the job moving for you CBA has had my contract etc for over 5 weeks and i only recieved word about the valuation a week ago i think the banks are really hard pushed atm to keep up with the extra business

I would wait to see what the price of the changes are first. I believe you only have to have the contract signed and dated before the 30th Sept.

As VB said. the banks are taking a lot longet atm to process docs. But they will back date the FHOG to the contract date

Don't be rush into signing your contract.Dont believe your sales rep, they just want to sign it off and their job is handed over to the contract guy. I believe your building contract there is engineering drawings.. Any changes structurally might incure cost. So Im might not sure what changes you are refering too.

Other than that, I'm sure you have a grace period of signing the contract.
There are even issues where after that grace period , there is increase in price.
So it all depends on what the contract says. And to do with FHOG you are right,
as long you sign the contract before the end of FHOG.

So look at contract carefully. As its law abidding. Once signed, thats it...

good luck

Thanks guys.

We don't want to make any structural changes to the plans. Only items like turning a full length window into a High-lite window etc. Our drawings that are attached to the building contract have full length windows shown. I was (still am) concerned about being charged a penalty for making that change after signing this contract, or does it not matter since its not structural, and it is normal for these changes to be made at pre-start anyway? The sales rep assures me that we wont be charged any penalties for making those changes at our pre start meeting, but although he said this via email, its not in the contract.

Thanks for the info!

Please take note of what was said in the latter posts about the cost of changes. Then go to a solicitor asap. The sales guy only gets paid when you sign, not if you sign. Its that simple.

Take care

KW........

We made changes after contract signing in the form of a post contract variation without penalty (they gave us 5 days after signing to finalise changes without penalty).

The bank needed this to include in the valuation of the property and finalise the mortgage amount.

It probably wouldnt be as bigger issue if your happy to pay for any extras from your own pocket?

I was also told by our previous builder and current builder that window sizes can be decided on/changed at prestart..... so, not sure?
Can they add the change you want to make to the contract with any other previous changes you made? For example our prelim has things listed like adding a window, or moving a wall. I imagine those changes will also be listed in our building contract, so can they not add this change now before prestart? (I've never built before - I know nothing, I'm just guessing/wondering!)

Im no expert but I dont think you can change windows after. As it may alter your 5 star rating. Or they will try to tell you it will alter it to get a redrawing fee from you.

Best to get it right first, if you can and its no easy.

Good luck but get your *** to a solicitor to check your contract.

KW.......

As long as you sign your contracts by the FHOG cutover you are fine

As for the sales rep pushing you - they are probably trying to get you to sign before the end of the month to meet their monthly sales bonuses etc etc

I would personally get all the alterations and pricings done before signing so you know what you are up for