Browse Forums Building A New House 1 Jul 29, 2017 3:36 pm My husband and I are looking to build through WA Country Builders and are getting close to signing a Preliminary Agreement with a $1500 deposit. Is this what usually happens? My husband has pretty much shut down at the idea of signing anything before we have finance approval, and I understand where he's coming from. WA country builders have said the broker needs the preliminary agreement before we can get finance approval. Im all really new and un-educated with this sort of thing so please forgive my stupidness! I just dont want to get stung! Any help appreciated Re: Preliminary Agreement help, new to building. 2Jul 29, 2017 8:40 pm Before the builder can give anything like an accurate price they need to understand the shape (including levels) of the block and the foundations they will need. For this they commission a site survey and a site investigation, which are going to cost around $1,500. They aren't going to be willing to commit to this expense unless they can see you are not a 'Tire Kicker' so you will need to pay the initial deposit and sign an agreement with the builder you like The Harder You Try - the Luckier You Get ! Web site http://www.anewhouse.com.au Informative, Amusing, and Opinionated Blog - Over 600 posts on all aspects of building a new house. Re: Preliminary Agreement help, new to building. 3Jul 29, 2017 11:39 pm Go ahead with it, if you are serious about them - and be sure to add ALL the inclusions you'd like, that you can think of. The PA doesn't lock you into a build (double check that for your case!), just gets you a 'quote'. Once you have your actual build contract (what you paid $1500 for), MAKE SURE you add 'subject to financial approval' as a clause before signing. Not only that - specify the bank you're with. I've heard cases where your preferred bank rejects you - but the builder can get you a loan with astronomical interest rates and you *have* to accept it! In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4840 Hi All, We signed a prelim agreement last year (May 2022) and paid deposit to a builder. However, we didn't go ahead with them and never signed a contract. We ended going… 0 2315 You need to respond to the Builder within 10 business day advising of your rejection of claim as per SoPA on a payment Schedule, Do not miss this deadline. 3 7349 |