Browse Forums Home Finance 1 Jun 29, 2012 10:19 am we signed a contract on a block of land almost a year ago now. Since then we have also decided on a house, and have paid deposits and signed on our final design. however during this time the value of land has dropped. i understand that as our land contract was subject to finance that if the bank did not approve our loan then we would recieve our deposit back. However if this occurs can anyone tell me what will happen with the deposits paid to the builder, would we lose this deposit or are we also entitled to a refund as our finance was not approved? Re: are deposits to builders refundable? 2Jun 29, 2012 2:43 pm Thats something only your builder could answer If he is nice about it he would, but it just depends on the terms of the contract and i guess how much work he has done, if any, towards getting everything ready At the end of the day a deposit is a deposit and they are generally non refundable Re: are deposits to builders refundable? 3Jun 29, 2012 5:36 pm If the builder has done design work, and perhaps, survey and site investigation he will be able to deduct these costs from the deposit so there probably won't be much left. 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: are deposits to builders refundable? 4Jun 30, 2012 2:29 am The way I read it is that you have purchased the land first, taken out the loan, and then decided to engage a builder later on and went back to the bank looking for a construction loan meaning they were two separate transactions and not an off the plan purchase. Unless you had a financial clause in the contract with the builder while applying for the construction loan with the lender, not much you can do in claiming your deposit back. That's the risk people take when building. Depending on what the maximum LVR your lender offered you, you might be able to try another lender that offers a higher LVR which can offset the drop in value? Re: are deposits to builders refundable? 5Jun 30, 2012 12:27 pm It depends on your terms and conditions of your building contract. 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: are deposits to builders refundable? 6Aug 20, 2012 2:01 pm you should definitely seek legal advice as it could be worse than not getting your deposit back . good luck leighton Re: are deposits to builders refundable? 7Jul 27, 2019 6:24 pm One of the complaints Dale Alcock received was a verbal agreement the deposit would be refunded, but then it was not. Best get things in writing, communicate via registered mail and contact the HIA with problems. Re: are deposits to builders refundable? 8Jul 27, 2019 6:27 pm In one 1 star complaint with a builder on productreview.com.au, that user did not only get his deposit back, the builder charged him tens of thousands of Dollars more claiming work had been done, a warning! Thanks. I called VBA today and they said it was a Consumer Affairs issue, the old handball. Seems like the government organisations don't want to do their job at the moment. 2 5710 Hi, This is my first post. We are planning to buy new home via House and Land (H&L) Package around Boxhill/Gables/Marsden Park in Syndey. Googled reviews for most of… 0 10480 Very good points. Thanks so much ponzutwo for your advice. Appreciate it. 2 10375 |