Browse Forums Building A New House Re: New Homes Contract 2Sep 28, 2006 9:58 am Ours was a standard contract with some typed up bits stuck on. Lawyers? 4Nov 28, 2006 7:13 pm Did anyone get it checked by a Lawyer? or do we all just sign these contracts thinking they must be OK if the HIA logo is on the top?
I do wonder if HIA could be liable in any way if things go wrong through misrepresentation. Re: New Homes Contract 5Dec 23, 2006 5:08 pm If something goes wrong, contracts are worthless. Who's going to enforce what you are entiltled to? Keep in mind you have no consumer insurance except in Queensland.
All you can do is go through the courts and this will cost you even more money but still doesn't get the items addressed. Withholding a payment puts you in breach of the contract regardless of whether the builder is breach or not by claiming payment when that stage has or has not been reached. In Victoria no organisation will help you. The Building Commission is impotent, Consumer Affairs Victoria pass complaints to the Building Commission. MBA and HIA tell you go elsewhere because you are not a member of their 'boys club'. A builder's reputation can vary from customer to customer usually as an indication of the qualiity of the supervisor which is luck of the draw to the consumer. Seek advice from a solictor before you sign a building contract so you know all the risks beforehand. Re: New Homes Contract 6Jan 09, 2007 7:41 pm The following comment is from the ABC 7.30 report 08/01/2007.
INDIRA NAIDOO, AUSTRALIAN CONSUMERS ASSOCIATION: People are being misled by what it covers. Most consumers are horrified, we've found, when they've discovered, unfortunately when they were already in trouble and needed the support of this protection scheme, that it was inadequate. The full transcript is available from this link: http://www.abc.net.au/7.30/content/2006/s1823562.htm Irrespective of which builder is chosen, the consumer has no protection. Caveats in contract placed by Builder 7Jan 15, 2007 1:49 pm Hi all,
Happy New Year. I am about to build a home in Victoria. I was wondering if anyone has had caveats put into the contract of your home by your builder. Does HIA, MBA or the laws in Victoria allow such a practice ? Does anyone know if there is a legal requirement in Victoria for the home owner to have caveats placed in the contract by the builder ? If it is not a state legal requirement, can we reject such a move by the builder ? I am just wondering if this is considered the norm when building a home with a project home builder. Also, I noticed that the wording of the clauses in the HIA new homes contract seems to be in favour of the builder not the owner. For example, when a response is needed by the owner, a specific number of days is stipulated, usually 7 days. However, when a response is needed by the builder, the written requirement is typically "a reasonable" amount of time. Am I being too sensitive or is there anyone else who agrees with me ? Your advise is most appreciated. Thank you ! Regards, First timer. Re: New Homes Contract 8Jan 15, 2007 4:01 pm What do you mean by 'caveats'? Usually, a caveat is a warming of some type, for example, warning that someone might have an interest in your property.
Is your builder claiming rights over your property in case you don't pay? They have other means of recourse if you don't pay so tell them to PO. CAVEAT 9Jan 15, 2007 9:21 pm Hi,
(Thanks Bud.) Here's a clarification of the caveat we are requested to sign. Essentially, the builder has a separate form which they expect us, the owners, to sign. This form states that : we now or at any time, are or can become liable to pay to the builder, on any account, money for services rendered and materials. we agree to pay the sum to the builder on demand; this demand can be made at anytime seven days from this date. if we default on our payment or part thereof, we, the owner charge all our estate and interest in the property (details of property) with payment of outstanding sums to the builder. we agree, in the event of a default, to provide the builder with a caveat against the property, which will not be withdrawn until the sum is paid in full and all contracts completed. Their definition of Default: Any failure to pay when due any sum owed to the builder by us, or any failure to meet any terms, covenants or conditions contained in any contract or agreement between us and the builder. My question is: Has anyone else received such a caveat document from builders that they've used or heard of any builders who issues this sort of thing ? If so, could you state which builders do this ? And, is this a legal requirement in State of Victoria ? I thought the standard HIA new home contracts has sufficient clauses to protect the builder's interest and allow them to liase directly with the bank for any issues of default or non-payment. Can we legally tell the builder to PO? (great idea, Bud) If, at any stage, the building inspector recommends certain items be redone before it is given a tick, are we, the owners, still expected to pay the progressive payment, even though the correction has not been made by the builder ? Is the building inspector's sign off required before progressive payments can be demanded of us, the owners ? First timer Re: New Homes Contract 10Jan 15, 2007 9:45 pm Hmm how can I say this gently.....
OH WELL. DONT EVEN THINK ABOUT IT!!!!!!!!!!!!!!!!!!!!! I would be having a word to a solicitor before you even entertain this notion, and no I do not beliveve it is standard. Adrian B Re: New Homes Contract 11Jan 16, 2007 9:59 am I agree with Adrian, don't do it and/or seek legal advice.
If the builder insists and you want to proceed, ask the builder for a caveat on his house incase he mucks you around, then see what he says! Re: New Homes Contract 12Jan 16, 2007 11:31 am I only think it is fair that the builder should have some way of recovering their losses in the event of a default in payments. Seems reasonable to me. I just don't like the way this particular builder has drawn up the contract. Maybe it is normal practice, I'm sure others have more knowledge. Perhaps it is worthwhile getting a solicitor to go over the contract with you. Re: New Homes Contract 13Jun 16, 2010 10:51 am I just got some legal advice on the mater and was informed that I do not have to sign a Caveat for the builder to put a caveat on land title. Under Domestic Building Contracts Act 1995 Act No. 91/1995. 18. Contract does not entitle builder to put caveat on the title of building site land A domestic building contract does not give a builder an estate or interest in any land for the purposes of section 89 of the Transfer of Land Act 1958. http://www.pic.vic.gov.au/resources/doc ... ts_Act.pdf For any one else seeking advice on the matter speak to consumer affairs on the situation. http://www.consumer.vic.gov.au ######################### Letter ############################# Simonds Homes MELBOURNE PTY LTD ACN 050 197 610 (“the Company”) of 2nd Floor 28-32 Albert Road, South Melbourne I/We xxxxxx of xxxxxxxx acknowledge that we are now or may at any time hereafter be or become liable to pay to the Company on any account whatsoever money (“the sum”) for services rendered and materials supplied to us, details of which have previously been supplied by the Company. In consideration of the Company not demanding immediate payment today of the sum owing to it by us we jointly and severally agree as follows: 1 To pay the sum to the Company upon demand, which demand may be made at any time after seven days from the date hereof. 2 We immediately upon an event of default including failure to pay the sum or part thereof to the Company charge all our estate and interest in the property known as LOT XXXXX being the whole or part of the land described in the Certificate Of Title Volume: TBA Folio: TBA (“the property”) with payment of the sum or any part of the sum remaining unpaid or to be paid to the Company. 3 To the Company immediately upon an event of default including a failure to pay the sum or part thereof lodging at the Land Registry a caveat against the property with such caveat not to be withdrawn until the sum has been paid in full and all contracts entered into between us and the Company completed. “an event of default” where referred to the above means any failure to pay when due any sum owed to the Company by us or any failure to meet any terms, covenants or conditions contained in any contract or agreement between us and the Company. You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16571 Hi there! Putting the feelers out there for those who have (or almost) built with Arli homes! Interested in your experiences who've built from their stock home designs… 0 23504 I believe that liquidated damaged should be amount of actual loss to the owner from the delays. The issue in all of this is building industry lobbying and contributing to… 5 3456 |