Browse Forums Building A New House 1 Jul 03, 2007 10:46 pm ..sorry about bombing the board with posts folks
As some may be aware, Porter Davis request a payment of 3% when signing of contract....it is at this stage that the lender needs to sight the contract and hence proceed to perform a valuation etc etc....to assess LVR The potential issue with this maybe, that the valuation comes in lower than the spend (cost that has been signed off on) and hence cause a 'roadblock' in finance proceedings..as it is up to the applicant/s to fund the shortfall....this will of course make it harder to pull out from the deal with PD as they are holding onto 3% of your cash.... My lender has advised that PD is unique at this as his experience with other volume builders is that a contract is presented early in the piece with no $$ having to be laid down at that step....this of course gives piece of mind, in case the valuation comes short and there is a need to pull out or not proceed...he indicated that Henley do this... Is this generally the case? ie. most builders (and if so, who are they) are happy to provide contract (with all costs included etc etc) without a deposit having to be paid??? and also, can variations to the contract (not structural) be made after the contract has been signed (say with PD) to 'lower' the total build cost just in case the valuation falls short???? Re: PD, Contract and 3% deposit... 2Jul 04, 2007 12:49 pm Hi Fojean,
One of the things that we found out was that if your finance goes through their finance broker (Choice) then your deposit becomes $1500 flat. If you don't use Choice, then you pay 3% at tender appointment, and the balance to make it up to 5% at contract signing. We found that with Choice, they could obtain the same finance, at the same bank as the one we were going to use - so the decision was simple! Perry Re: PD, Contract and 3% deposit... 3Jul 04, 2007 7:04 pm Thanks for the info.....
Am aware of that and it makes it 'attractive' to go through Choice considering that like yourself we are staying with my current lender.... ..received further info that allows us to insert the 'subject to finance' clause at tender just in case the Val comes back under... Hi all, Wife and i have placed an EOI on some land in Shoreline Estate, Redland Bay, QLD which will register in March-April next year. We need to pay 3% deposit, supply a… 0 32661 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 11215 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 3106 |