Browse Forums Home Finance 1 Nov 10, 2011 9:49 am Hi All, I'm new here and just getting started on building a new home and really excited about the challenge. I have a quick question about the Building Boost. I've asked OSR and builders and neither have given me a convincing explanation. From the builders perspective, an eligible contract is the point where I pay the second deposit after they have conducted soil test, contour testing etc (in my case that is $1500 intially and then another $2500) by which we'll have a first run at a fixed price. From our conveyancers point of view (these are his thoughts and he's not been able to get clarification from OSR) a contract is when we sign the fixed price building contract with the commencement date. Anything we do before cannot be classified as a contract. But he's unable to get OSR to explain what an eligible contract is. The builders comment here is if that's the case they wouldn't be able to promote this offer after the end of this month as it takes about 8 weeks to get to the contract stage. Also, this new estate is promoting this boost right up to January next year. I'm a bit confused here. I want to be eligible for the boost but I really don't want to push to sign the contract quickly just to get the boost. I'm happy to get the process started and if all is well sign the contract in time. We meet all other requirements and its a simple build where we've purchased land and plan to build on it. What are your thoughts? Have you encountered the same issue? Thanks in advance. Re: Queensland Building Boost - 'Eligible Contract?' 2Nov 15, 2011 10:50 pm oztraze From the builders perspective, an eligible contract is the point where I pay the second deposit after they have conducted soil test, contour testing etc (in my case that is $1500 intially and then another $2500) by which we'll have a first run at a fixed price. NO- your under no legal obligation to continue with the building/contract as such- in fact if the soil test fails you can;t build... http://www.shapehomeloans.com.au/blog/queensland-building-boost-grant-10-000-2011080441 oztraze From our conveyancers point of view (these are his thoughts and he's not been able to get clarification from OSR) a contract is when we sign the fixed price building contract with the commencement date. Anything we do before cannot be classified as a contract. But he's unable to get OSR to explain what an eligible contract is. Correct- the signing of the building fixed price is what the OSR ask for. Have your conceyancer even lodge a QLD first home boost form before?? maybe you should Dl the form and within that form there is a checklist of 8 items...and in that checklist one of the item i think it's the 2nd/3rd one ask for a non-binding building contract signed. oztraze The builders comment here is if that's the case they wouldn't be able to promote this offer after the end of this month as it takes about 8 weeks to get to the contract stage. Also, this new estate is promoting this boost right up to January next year. The good old " sign now, as this soil test and quote last for 3 month only!! Hurry!! -- it's a sales tactic - the guy is BS-ing you...do it at your own pace and make sure your happy...don;t rush such a big decision. Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au Re: Queensland Building Boost - 'Eligible Contract?' 3Nov 16, 2011 7:15 am Thanks Michael. Quote: NO- your under no legal obligation to continue with the building/contract as such- in fact if the soil test fails you can;t build... Fully understand that. Quote: Have your conceyancer even lodge a QLD first home boost form before?? maybe you should Dl the form and within that form there is a checklist of 8 items...and in that checklist one of the item i think it's the 2nd/3rd one ask for a non-binding building contract signed. He has lodged a few but not specifically with the same situation as us. He has contacted OSR and they've not been helpful. I have reviewed the form and cannot find what you mention. It talks about a home building contract and again refers back to the 'eligible contract'. Also not sure I understand a 'non binding' contract. Once I sign the final contract am I not commiting to build the house? Quote: The good old " sign now, as this soil test and quote last for 3 month only!! Hurry!! -- it's a sales tactic - the guy is BS-ing you...do it at your own pace and make sure your happy...don;t rush such a big decision. I don't I've explained correctly here. The builders is saying take your time and there is no hurry as once we start process we've entered into 'eligible' building contract. The conveyancer is actually advising us that we need to sign the contract to build which requires us to rush through things. I'll try once more. Step 1: Pay deposit of 1500 to get soil test, contour test etc. (4 weeks) - Builder says this is the eligible contract for OSR. Step 2: Pay further 2500 to get drawings, approvals, and fixed price quote. (8 weeks) Step 3: Sign the above fixed price quote with a commencement date - Conveyancer says we need to be at this stage to be eligible for the grant. I'm still not sure what is considered as an eligible contract! Thanks, Re: Queensland Building Boost - 'Eligible Contract?' 4Nov 16, 2011 8:14 am Step 3 is the eligible contract and this is what OSR ask for. In summary: ( page 5 and 6 of the OSR form) The eligible transaction starts from - Date of contract of sale to purchase or contract to build a home or, for an owner builder, the date laying of the foundations commenced. [ in your case, the date the building of the foundation will start; step 3] eligible Building contract = That you have met the conditions of the grant; in terms of date, timeframe and price etc... --- Just remembered the grant does have a time-frame - you must start construction within 26 weeks of the contract date + finish the build within 18 month. Only the "contract" in step 3 will have these "expected time frame" from your builders...if that make sense? Regards Michael Michael Chan | Australia wide Mortgage Broker Michael@ShapeHomeLoans.com.au | 1300 74 5626 | Fax: 02 8212 8909 http://www.ShapeHomeLoans.com.au I think you are getting different numbers because they all just based them on "other jobs" even though each job is unique. Often, with builders, unless you're speaking to… 3 3232 1 10482 Building Standards; Getting It Right! We bought a house in 2015 advertised as a 7/2/2, 4br up, 3br down (7br), and to date, it’s a great house. However, we’ve just had it valued and it’s come in as a… 0 11987 |