Browse Forums Building A New House 1 Nov 14, 2014 6:30 pm In march hubby and I entered into a contract to buy land in a new estate and another to build with HBC. The title was supposed to be issued in July and on the PWC it locks the price in for 9 months. So from December the build cost increases 1% of the contract price for each month or part thereof that it runs over. Titles keep being delayed and we are now being told Jan-Feb. But my understanding is that the build process starts some 8 weeks after that, is that correct? So we will be slugged the 1% for each month from dec to whenever the build starts? the delay is totally not our fault (nor the builders) however we realise we probably took too big a risk. Being newbies, we took the advice of a property developer friend however he is in a very different financial position from us and it makes no difference to him if this is delayed. We only have a 5% deposit and can't just find the extra 1% (nearly 2K each month) on top of our other comittments for many months and we have a few pressing financial issues in our family at the moment so we need to either get on with things or get out. Can we get out? Are we just over a barrel and having to pay whatever they decide to charge now? The land contract says we can't terminate unless titles havent issued within 2 years of the contract date which will happen. Re: advice please re increase in cost due to delay issuing t 2Nov 14, 2014 6:34 pm Was there a subject to finance clause on either contracts? Have your bank do a letter saying finance was denied? Re: advice please re increase in cost due to delay issuing t 3Nov 14, 2014 6:40 pm MrBee Was there a subject to finance clause on either contracts? Have your bank do a letter saying finance was denied? yes both were subject to finance but finance was approved. It will probably be declined if we have to find the extra $2k a month for god knows how many months though. I don't really want to lie and say its declined if its not and wouldnt that look bad on our credit rating? Maybe the lesser of the evils though. We would like to proceed with the build but I am scared about how much the cost might snowball. Fair Trading can issue orders to rectify and complete but once the matter goes to NCAT these orders are automatically vacated. You will have to terminate contract and sue… 21 29709 How are you doing Ben? Extremely interested in hearing what you are doing or plan to do! 12 15148 Hi, My home construction is complete, and the handover is scheduled next week. However the construction has been delayed and I have raised this to the builder. The… 0 5323 |