Browse Forums Building A New House 1 Sep 18, 2015 11:30 am Hi all I need advice if anyone been through similar situation as I am now.I paid 5% deposit to the builder and I/we cancelled our home contract within cooling off period . Intially I paid 1000.00 to provide to provide a new home contract . When I asked for refund builder said I am liable for about 5000.00 for they work they done on my project which is soil test surveys plans energy rating . Contacted consumer affairs , they were hopeless there response was we can't resolve as builder said they have done that work and I gave them the authorized them to do that when I paid 1000.00 intial deposit . we can't resolve it Is there anything I can do in this situation Anyone been in that situation .. Please advice Thanks in advance . . [url][/url] Re: Contract cancellation within cooling off 2Sep 18, 2015 12:28 pm What does your contract state about cancelling, and what you are entitled to as a refund? You would almost certainly lose the $1k, but I'm not sure about the balance of the 5%. Building the Denver by Metricon on acreage Land settlement: 24/8/15 Contracts: 8/7/16 Finance approved: 5/8/16 Council approval.....? viewtopic.php?f=31&t=79213 Contract cancellation within cooling off 3Sep 19, 2015 9:50 am There will be a fee specified in your contract about what is payable for works completed should you rescind it. Re: Contract cancellation within cooling off 4Oct 20, 2015 9:28 am We are in the same boat. We paid a $3000 deposit with the assurance any portion not used would be refunded should we change our minds. From day one they mucked us around, our land has a slope and sandstone at .9m and they just didn't seem to know how to deal with it, coming up with ridiculous proposals from digging us into a hole (with rock breakers) to building us up so high we would tower over everyone. The plans went back to their draughtsperson twice, the first time because they weren't happy. After 2 months and no workable plan and well over the budget we specified we just had to walk away. I sent a very polite email requesting an itemised account and a refund of the portion not used, received one back claiming to understand (I just told them we couldn't afford it) and saying they would work it all out, and a strange comment about us not providing them with a budget figure...ummm yes we did! Of course thats the last we've heard from them. If it was just the standard $1500 I'd walk away but $3000 is a lot to lose through no fault of our own. We paid for our own soil tests so at the very least they need to refund that. We also never signed a contract so not sure if that works for or against us. How is it working out for you? They ball really is in the builders court in these situations isn't it? Re: Contract cancellation within cooling off 5Oct 20, 2015 10:23 am You may have to pay what they have expended - but tests etc should be available and what else they have done - itemised - as said above. If you have signed it must say something in the paperwork - I hope ... Re: Contract cancellation within cooling off 6Oct 20, 2015 12:41 pm I would look into your contract. Ours states if we pull out during the cooling off period we lose $10,000 - no itemise bills etc - its just there in black and white. This was why it took a week before I signed the contract to go through every paragraph etc and agree with it before signing as I couldn't afford to lose $10,000 if we pulled out. Ours was a HIA contract and the $10,000 was the standard amount printed in it. ~Shellby~ GJ Bridgewater 203 11/3/2016 - Site Work Started 29/9/2016 - Handover 142 Work Days 6 Work Days Over https://forum.homeone.com.au/viewtopic.php?f=31&t=80174 Re: Contract cancellation within cooling off 7Oct 20, 2015 4:20 pm I'm not quite sure I understand, did you sign anything? I paid $1,000 to a builder, but a week later told them I couldn't go ahead at the price they quoted me and they refunded me in full, though they technically didn't have to according to a one page document I signed (nice of them). I've paid my current builder $2,000. No contract has been signed, so I will only pay the balance when the contract is signed. My assumption has been if I walked away tomorrow, I would simply loose the $2k and that would be that. I'm surprised they want you to pay more.. they should have asked for enough to cover the preliminary work??? Contract cancellation within cooling off 8Oct 21, 2015 7:02 am Just re read your post. Check the regulator in your state, however - I understand that If you have signed or entered into a preliminary agreement the builder is entitled to keep monies already paid, for example that for soil testing or plan preparation. This is normally what you may have when you start the tender process and is not the same as an actual building contract. Eg you may pay them something like 1500-3000 to test the soil and maybe draw up a concept sketch. Should not be anything more. If you cancel a building contract (as separate from a preliminary agreement) INSIDE the cooling off period you are not liable for loss of profit or costs incurred. If you rescind OUTSIDE the cooling off period damages will be specified in your contract. Be aware that the cooling off period starts when you receive the signed copy of the contract regardless of when you actually signed it. This is normally the same day anyway. 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