Browse Forums Building A New House 1 May 14, 2014 12:05 am hi i was just after some advice, we are looking at purchasing a block in a new estate and the titles won't be issued til November this year (possibly later if delayed), can we go ahead and start looking for a builder and get a build contract organised or is this something that has to wait until we actually have the titles? if they can do it before titles are issued can it still be subject to finance and what other conditions might they impose? thanks Re: signing a build contract before land titles 2May 14, 2014 12:46 am We had our builder organised and the plans drawn etc well before the titles were issued. However we couldn't sign a building contract till after. You can't sign a contract to build on land that you don't yet own! We also had to have proof of unconditional finance approval before we could sign a contract to build. My Building Thread:https://forum.homeone.com.au/viewtopic.php?f=31&t=66153 Re: signing a build contract before land titles 3May 14, 2014 11:35 am they want to sign a contract subject to the titles being issued and also to collect a deposit off us to cover the cost of preparing plans etc which would be non-refundable if for whatever reason the build doesn't proceed. Does that sound right? Re: signing a build contract before land titles 4May 14, 2014 3:53 pm Hi ivory_kitten , I would say that is quite normal as we did this with our builder. We signed on with them well before our block titled, i can't remember there being a condition about land title in the contract but we were aware that we would lose our deposit if we walked away - that's the risk. Just some thing to think about - how long your builder will lock in the prices for especially if your title is delayed. That's a big one to consider. Also, as a side note if you are going down the path of buying entitled land just keep in mind the possibility of big delays and make sure you can accommodate that. We had a 6-7 month delay obviously ours which was really unexpected (other stages have not been that delayed) so just be prepared for all the scenarios My build thread: viewtopic.php?f=31&t=70636&p=1161767#p1161767 Re: signing a build contract before land titles 5May 19, 2014 12:41 am Hi Ivory Kitten. Yes you can sign a building contract without title being issued. It can be subject to finance or subject to settlement of land etc. obviously if approval for financing a loan isn't granted then you would lose your deposit. Someone I know did the exact same thing as you are doing, it's fairly common. Re: signing a build contract before land titles 6May 19, 2014 12:49 am I forgot to add have you purchased the land yet? There would need to be a contract of sale on the land for you to proceed with the building contract. Both contracts could be conditional or subject to finance, etc. It does get a bit confusing but there are all sorts of protections put in place for you and also for the vendor and the builder. Re: signing a build contract before land titles 7Jul 17, 2014 6:50 pm We are in a similar situation. I seem to get different answer. We paid the deposit for the land which is yet to be titled. We signed the pre-sign up contract with the builder with the deposit. We can still walk away with the refund until there is work done on the formal contract/drawing. The bank is keen to have the builder to draft everything and prepare the building contract so they can give us finance now. That's because the land developer wants the land to be settled in 21 days after the title and the banks need 6 weeks in total for the finance and settlement. So it seems logical to have the draft/contract now and have the finance approved while waiting for the title. But the builder says no. Is it common than I think? Timeline: viewtopic.php?f=31&t=76782 Re: signing a build contract before land titles 8Jul 18, 2014 12:36 pm Hi ivory_kitten, we had the similar scenario. We paid the deposit for land and house to hold the price in Oct 2013. Apply for finance subject for approval. Contracts were signed - subject to unconditional finance approval and Visa status. At that time we are on 457 visa. We had our prestart Nov 2013. Got our PR Feb 2014. Titles came out in April 2014 and we settled 10 days after. Kdolls Re: signing a build contract before land titles 9Jul 18, 2014 4:24 pm Doing the same thing right now! Have met with our builder (Botanic Homes) numerous times, had a formal quote drawn up and meeting with him tonight to see how we go with it all! Not sure wether hell flick the pressure switch on to try get us to sign but we will definitely sign with them before our land titles, this can ensure that you can start almost straight away! I think its the way most people do it, unless they've bought land that is ready and raring to go! Been in a similar position and we decided to let the builder go. Some of the PSA money goes to engineering so we at least got those documents and they actually refunded us… 2 4564 Thank you so much everyone. This all makes a lot of sense. I guess when you talk to a builder who butters up everything to look very polished, you get to start believing… 8 2258 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 12063 |