Porter Davis homes

JessikaV · Jan 12, 2017 10:55 am

nikil

Hi Guys,

Is there anyone here who did not pay the 3% at tender. (I think I remember someone saying they made another agreement)..

We cannot access our mortgage as the bank won't release any funds without an actual contract signed. I've tried telling our BC this but I honestly think all her emails back to me are copy and paste cos it's like she didn't read my email. She basically just said 3% is to be paid at tender appointment. Nothing else.

We didn't pay the 3% at tender as there were so many errors and items which we not priced etc.

Once we received correct pricing we paid the 3% (a few weeks later)

Jess

http://www.buildingthevancouver33.wordpress.com

nikil · Jan 12, 2017 10:59 am

JessikaV

nikil

Hi Guys,

Is there anyone here who did not pay the 3% at tender. (I think I remember someone saying they made another agreement)..

We cannot access our mortgage as the bank won't release any funds without an actual contract signed. I've tried telling our BC this but I honestly think all her emails back to me are copy and paste cos it's like she didn't read my email. She basically just said 3% is to be paid at tender appointment. Nothing else.

We didn't pay the 3% at tender as there were so many errors and items which we not priced etc.

Once we received correct pricing we paid the 3% (a few weeks later)

Jess

http://www.buildingthevancouver33.wordpress.com

Thanks Jess, I had been thinking we most likely won't sign on the day anyway because I want some time to really go over the paperwork and make sure it's all correct.

nikil · Jan 12, 2017 10:59 am

Hurrow

nikil

Hi Hurrow,

The payments are $2000 deposit, then 3% of house cost at tender then 2% at contract (- $2000 paid at the start).

What's most annoying about it is they still don't fix the cost at tender, a lot of people still get extra costs added at Contract.

Interesting! The photo of the PD document on my phone doesn't mention anything about 3% at tender and our SC hasn't mentioned anything about it either. I seem to recall a conversation with him about the timeline and I asked about the 5% at contract, he didn't say anything about tender. Where in all the documents does it talk about the 3% at tender?

I'll see if I can find it.

nikil · Jan 12, 2017 11:20 am

Hurrow

nikil

Hi Hurrow,

The payments are $2000 deposit, then 3% of house cost at tender then 2% at contract (- $2000 paid at the start).

What's most annoying about it is they still don't fix the cost at tender, a lot of people still get extra costs added at Contract.

Interesting! The photo of the PD document on my phone doesn't mention anything about 3% at tender and our SC hasn't mentioned anything about it either. I seem to recall a conversation with him about the timeline and I asked about the 5% at contract, he didn't say anything about tender. Where in all the documents does it talk about the 3% at tender?

Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅ Like ⋅ Add a comment ⋅ Pin to Ideaboard ⋅

Stage 2 under the Tender section it mentions the 3%

Hurrow · Jan 12, 2017 11:28 am

nikil

Stage 2 under the Tender section it mentions the 3%

Ok on my doc it only has Sales Acceptance, Selections and Document Preparation. There is nothing about Tender on there. Maybe PD have recently updated their processes, or maybe we have an old document? We only put the $2k down on our quote in mid Dec 2016 so I'd have assumed that given there has been no discussion of it and our document doesn't have anything about it there is no Tender stage any more, or at least we don't have to pay a deposit.

nikil · Jan 12, 2017 11:30 am

Hurrow

nikil

Stage 2 under the Tender section it mentions the 3%

Ok on my doc it only has Sales Acceptance, Selections and Document Preparation. There is nothing about Tender on there. Maybe PD have recently updated their processes, or maybe we have an old document? We only put the $2k down on our quote in mid Dec 2016 so I'd have assumed that given there has been no discussion of it and our document doesn't have anything about it there is no Tender stage any more, or at least we don't have to pay a deposit.

Yea that's unusual, we put our $2k down on 22nd of November so only a few weeks before you. If I was you I wouldn't say anything, if they haven't notified you of it then they can't expect you to turn up to tender and pay it.

Hurrow · Jan 12, 2017 11:42 am

nikil

Yea that's unusual, we put our $2k down on 22nd of November so only a few weeks before you. If I was you I wouldn't say anything, if they haven't notified you of it then they can't expect you to turn up to tender and pay it.

I'm reasonably relaxed about it either way as we have the funds to pay it, but certainly if they bring it up that they want some money down early then we will be having a chat about how it's not in the documents!

Given that you don't want to pay the money at tender if you can avoid it, maybe bring up that other customers don't have to pay any money at tender? It might be worth discussing with your sales consultant in advance and just checking if the process has changed?

Looking at your blog they appear to have made some pretty rapid progress in digging the holes there! Your block also looks a lot nicer than ours at the moment, lots of nice grass vs bare dirt and piles of dirt we have. Hopefully only 4 months till it titles at least!

nikil · Jan 12, 2017 11:49 am

Hurrow

nikil

Yea that's unusual, we put our $2k down on 22nd of November so only a few weeks before you. If I was you I wouldn't say anything, if they haven't notified you of it then they can't expect you to turn up to tender and pay it.

I'm reasonably relaxed about it either way as we have the funds to pay it, but certainly if they bring it up that they want some money down early then we will be having a chat about how it's not in the documents!

Given that you don't want to pay the money at tender if you can avoid it, maybe bring up that other customers don't have to pay any money at tender? It might be worth discussing with your sales consultant in advance and just checking if the process has changed?

Looking at your blog they appear to have made some pretty rapid progress in digging the holes there! Your block also looks a lot nicer than ours at the moment, lots of nice grass vs bare dirt and piles of dirt we have. Hopefully only 4 months till it titles at least!

We are doing a KDR and haven't cleared the block yet. We bought the block with a demolished house on it so we have to clear the block which is costing us around $10k and we also have to install the electrical pit which will cost a few thousand so if we can hold on to some money for a bit longer we would prefer to do that and let the house be covered by the mortgage.

I'm happy to pay it at Contract stage, I just know from reading people stories here, that at Contract the price can jump again. Also I have seen people for various reason walk away between tender and Contract and then that money is non refundable.

Hurrow · Jan 12, 2017 11:56 am

nikil

We are doing a KDR and haven't cleared the block yet. We bought the block with a demolished house on it so we have to clear the block which is costing us around $10k and we also have to install the electrical pit which will cost a few thousand so if we can hold on to some money for a bit longer we would prefer to do that and let the house be covered by the mortgage.

I'm happy to pay it at Contract stage, I just know from reading people stories here, that at Contract the price can jump again. Also I have seen people for various reason walk away between tender and Contract and then that money is non refundable.

Whoops, I was looking at the wrong blog sorry!

Hopefully it all works out for you, I'd certainly be asking if you can hold off on paying it until contract though!

nikil · Jan 12, 2017 11:57 am

My blogs not very exciting yet haha. We'll get there eventually, we have an April start date for the build. Hopefully there will be no delays!

Naama · Jan 12, 2017 1:46 pm

Hi I am just now leaving my tender appointment, the 3% and then the 2% is out of your own pocket since the bank will only give you 80% or 90% anyway so you pay pd now and then it all adds up so once you get to the limit your bank will start paying for everything if that makes sense...
They say that the banks will have you pay first anyway before they start paying for things...

Hurrow · Jan 12, 2017 3:41 pm

Naama

Hi I am just now leaving my tender appointment, the 3% and then the 2% is out of your own pocket since the bank will only give you 80% or 90% anyway so you pay pd now and then it all adds up so once you get to the limit your bank will start paying for everything if that makes sense...
They say that the banks will have you pay first anyway before they start paying for things...

How did the appointment go Naama, all well I hope?

That makes sense from the banks point of view, no point putting their money at risk before the customer does.

Naama · Jan 12, 2017 3:55 pm

Hi Hurrow, yeah, it was pretty much what we were expecting. One bad thing was that our sales coordinator did not tell us we will need to get an electricity pit from overhead electricity so we are rushing to figure it out now, I'm very annoyed as we could have had it done ages ago and now the site start will have to be pushed.
Our electricity supplier is powercor and the amount of information they need is silly... How many amps are we going to need?? Who knows? We called them and they said we should hire an electrician just to fill out the form (seriously???)

Hopefully out BC will be able to answer it for us...

nikil · Jan 12, 2017 4:00 pm

Naama

Hi Hurrow, yeah, it was pretty much what we were expecting. One bad thing was that our sales coordinator did not tell us we will need to get an electricity pit from overhead electricity so we are rushing to figure it out now, I'm very annoyed as we could have had it done ages ago and now the site start will have to be pushed.
Our electricity supplier is powercor and the amount of information they need is silly... How many amps are we going to need?? Who knows? We called them and they said we should hire an electrician just to fill out the form (seriously???)

Hopefully out BC will be able to answer it for us...

Thankfully we found out about this, but any info you get would be helpful as I also got a bit confused looking at the application form! We haven't filled it in yet.

inexp_user · Jan 12, 2017 6:11 pm

For those that are not aware I thought I'd post the HIA payment schedule

5% - Deposit
10% - Base
15% - Frame
35% - Lock up
25% - Fixing
10% - Completion

Porter Davis front load their payment schedule. The idea behind the HIA schedule is if the builder walked away at any stage, for whatever reason you have enough funds to complete the house. With PD's schedule you have paid 50% of your contract price and all you have is a frame and a slab. PD have been around for a long time and are probably not going to walk away but at least you do not have to pay interest on the borrowed money until later in the build.

On our Procedure Of Purchase we crossed out the PD schedule and wrote the HIA schedule and signed that. Some banks won't lend you the funds if the HIA schedule is not used so you can always use that excuse.

We have had our Tender but have not signed it because we are not happy with it so we have yet to pay the 3%.

Hurrow

nikil

Hi Guys,

Is there anyone here who did not pay the 3% at tender. (I think I remember someone saying they made another agreement)..

We cannot access our mortgage as the bank won't release any funds without an actual contract signed. I've tried telling our BC this but I honestly think all her emails back to me are copy and paste cos it's like she didn't read my email. She basically just said 3% is to be paid at tender appointment. Nothing else.

I haven't heard anything about 3% at tender?

Our arrangement as far as I know is:

$2k at quote to lock in the price
5% at contract (I think this is where the $2k paid at quote is taken into account)
20% at base
25% at frame
20% at lockup
20% at Fixing
10% at completion

That's what it has on the Porter Davis flyer that our SC gave us anyway, I must admit I haven't looked into it beyond that though.

Waldorf_Grange_Build · Jan 12, 2017 6:15 pm

inexp_user

For those that are not aware I thought I'd post the HIA payment schedule

5% - Deposit
10% - Base
15% - Frame
35% - Lock up
25% - Fixing
10% - Completion

Porter Davis front load their payment schedule. The idea behind the HIA schedule is if the builder walked away at any stage, for whatever reason you have enough funds to complete the house. With PD's schedule you have paid 50% of your contract price and all you have is a frame and a slab. PD have been around for a long time and are probably not going to walk away but at least you do not have to pay interest on the borrowed money until later in the build.

On our Procedure Of Purchase we crossed out the PD schedule and wrote the HIA schedule and signed that. Some banks won't lend you the funds if the HIA schedule is not used so you can always use that excuse.

We have had our Tender but have not signed it because we are not happy with it so we have yet to pay the 3%.

Hurrow

nikil

Hi Guys,

Is there anyone here who did not pay the 3% at tender. (I think I remember someone saying they made another agreement)..

We cannot access our mortgage as the bank won't release any funds without an actual contract signed. I've tried telling our BC this but I honestly think all her emails back to me are copy and paste cos it's like she didn't read my email. She basically just said 3% is to be paid at tender appointment. Nothing else.

I haven't heard anything about 3% at tender?

Our arrangement as far as I know is:

$2k at quote to lock in the price
5% at contract (I think this is where the $2k paid at quote is taken into account)
20% at base
25% at frame
20% at lockup
20% at Fixing
10% at completion

That's what it has on the Porter Davis flyer that our SC gave us anyway, I must admit I haven't looked into it beyond that though.

Yes we had them agree to change to this schedule too so that we are paying less interest to our bank earlier on in the build process.

We did pay 3% at Tender and then the remaining to take it to 5% (minus the 2k deposit) at contract.

inexp_user · Jan 12, 2017 6:22 pm

I don't think they have an issue with you changing to the HIA schedule. I think they like to catch all the purchasers who are not aware there is a guideline out there and don't question it.

Waldorf_Grange_Build · Jan 12, 2017 6:25 pm

inexp_user

I don't think they have an issue with you changing to the HIA schedule. I think they like to catch all the purchasers who are not aware there is a guideline out there and don't question it.

Yes. We found out about it on this forum just in time but some others had already signed and it was too late.

nikil · Jan 12, 2017 6:26 pm

Waldorf_Grange_Build

inexp_user

I don't think they have an issue with you changing to the HIA schedule. I think they like to catch all the purchasers who are not aware there is a guideline out there and don't question it.

Yes. We found out about it on this forum just in time but some others had already signed and it was too late.

So if we go with the HIA schedule does that mean we don't pay anymore until contract?

Waldorf_Grange_Build · Jan 12, 2017 6:28 pm

nikil

Waldorf_Grange_Build

inexp_user

I don't think they have an issue with you changing to the HIA schedule. I think they like to catch all the purchasers who are not aware there is a guideline out there and don't question it.

Yes. We found out about it on this forum just in time but some others had already signed and it was too late.

So if we go with the HIA schedule does that mean we don't pay anymore until contract?

Both schedules require the 5% in the same way I believe. It only varies the amount of the payments after you start building.