Browse Forums Building A New House Re: Termination of building contract due to being unable to 6Oct 20, 2018 8:43 am Designer,Engineer (Civil,Const & Envir),Builder,Concrete & Masonry Contract.Struct Repairs Re: Termination of building contract due to being unable to 8Oct 20, 2018 1:58 pm Melissa.prinsloo Hi all My husband and I are seeking advice on whether we are legally entitled to our 5% deposit back (or at least some of it) when we had to cancel our contract due to being unable to secure finance. Our land was so delayed in titling that our approval expired and when we went to re apply we got declined due to our finiancial situation changing. The building company have said they are entitled to charge ‘reasonable amounts’ for works already completed, but this is virtually our entire deposit! I don’t see how administration costs for example can equate to over $2000 when no physical work was even started. It just seems plain greedy to me! Is this worth fighting or do we cut our losses? So how much have you paid and what has been done so far? We walked away before signing a contract but had paid several thousand $ which covered plans, valuations, tile app, colour consultations, surveys etc. we got nothing back but we didn’t fight it. But if I was walking away from 5% of our build than that’s a lot more than a few thousand $ Re: Termination of building contract due to being unable to 9Oct 20, 2018 2:59 pm Melos Melissa.prinsloo Hi all My husband and I are seeking advice on whether we are legally entitled to our 5% deposit back (or at least some of it) when we had to cancel our contract due to being unable to secure finance. Our land was so delayed in titling that our approval expired and when we went to re apply we got declined due to our finiancial situation changing. The building company have said they are entitled to charge ‘reasonable amounts’ for works already completed, but this is virtually our entire deposit! I don’t see how administration costs for example can equate to over $2000 when no physical work was even started. It just seems plain greedy to me! Is this worth fighting or do we cut our losses? So how much have you paid and what has been done so far? We walked away before signing a contract but had paid several thousand $ which covered plans, valuations, tile app, colour consultations, surveys etc. we got nothing back but we didn’t fight it. But if I was walking away from 5% of our build than that’s a lot more than a few thousand $ Agreed - $2000 paid for soil test, quotes, drafting, staff time at selections... If that's the amount, then I'd say it's pretty reasonable, maybe a little for the builder on top. If it's 5%, then i'd be fighting tooth and nail for it. A few thousand dollars is reasonable for that amount of work/time. $10-30k is not. Re: Termination of building contract due to being unable to 10Oct 21, 2018 9:07 am Hi Melissa, please clarify how much have you paid whether $2k or 5% of the total build. Thanks Re: Termination of building contract due to being unable to 11Oct 22, 2018 8:35 am Melbournevic Hi Melissa, please clarify how much have you paid whether $2k or 5% of the total build. Thanks We have paid 5% of the total build. Re: Termination of building contract due to being unable to 12Oct 22, 2018 8:39 am Unfortunately we had paid 5% of the total build so that was over $11k. They have sent us a vague breakdown of costs such as colour selection appointment $900 etc but I feel like they’ve just made up the rest to add up to our deposit such as admin costs $2950!! It’s outlandish!! Re: Termination of building contract due to being unable to 13Oct 22, 2018 8:40 am KingTaco Melos Melissa.prinsloo Hi all My husband and I are seeking advice on whether we are legally entitled to our 5% deposit back (or at least some of it) when we had to cancel our contract due to being unable to secure finance. Our land was so delayed in titling that our approval expired and when we went to re apply we got declined due to our finiancial situation changing. The building company have said they are entitled to charge ‘reasonable amounts’ for works already completed, but this is virtually our entire deposit! I don’t see how administration costs for example can equate to over $2000 when no physical work was even started. It just seems plain greedy to me! Is this worth fighting or do we cut our losses? So how much have you paid and what has been done so far? We walked away before signing a contract but had paid several thousand $ which covered plans, valuations, tile app, colour consultations, surveys etc. we got nothing back but we didn’t fight it. But if I was walking away from 5% of our build than that’s a lot more than a few thousand $ Agreed - $2000 paid for soil test, quotes, drafting, staff time at selections... If that's the amount, then I'd say it's pretty reasonable, maybe a little for the builder on top. If it's 5%, then i'd be fighting tooth and nail for it. A few thousand dollars is reasonable for that amount of work/time. $10-30k is not. We paid 5% of total build so over $11k Re: Termination of building contract due to being unable to 14Oct 22, 2018 8:49 am Melissa.prinsloo Unfortunately we had paid 5% of the total build so that was over $11k. They have sent us a vague breakdown of costs such as colour selection appointment $900 etc but I feel like they’ve just made up the rest to add up to our deposit such as admin costs $2950!! It’s outlandish!! Now I got what you mean. Over $2k for that admin cost is ridiculous and so is the 5% of the total build. Which builder were you in? If someone's financial has changed and is unable to apply for loan, losing another 5% adds more burden. Seems unfair for us. Hope someone can advise you here. Re: Termination of building contract due to being unable to 15Oct 22, 2018 8:50 am Reach out to the builder ask for a breakdown of costs so far and then ask for the remainder to be returned. If they won’t work with you go to fair trading. I believe our contract says something to the effect of them being entitled to cover expenses and costs incurred including a builders margin. Re: Termination of building contract due to being unable to 16Oct 22, 2018 8:50 am Melbournevic Melissa.prinsloo Unfortunately we had paid 5% of the total build so that was over $11k. They have sent us a vague breakdown of costs such as colour selection appointment $900 etc but I feel like they’ve just made up the rest to add up to our deposit such as admin costs $2950!! It’s outlandish!! Now I got what you mean. Over $2k for that admin cost is ridiculous and so is the 5% of the total build. Which builder were you in? If someone's financial has changed and is unable to apply for loan, losing another 5% adds more burden. Seems unfair for us. Hope someone can advise you here. We were with Sherridan homes. That’s what I thought! It’s so unfair we just feel sick about it! Re: Termination of building contract due to being unable to 17Oct 24, 2018 8:39 pm I’ve had this discussion with our builder after we changed from another builder because of delays, price increases etc. We wanted to make sure we didn’t lose another $4k so I went through this carefully the second time around. We were told that the first payment covers working plans, soil tests and a fixed price which is enough to give to a lender. Once finance is approved the 5% is paid minus the initial payment which is the $4k. If finance isn’t approved then we lose the $4k which from my calculations seems quite fair. People we know gave a $12k deposit, changed builder and got it all back. I’m not sure where you are but I wouldn’t be giving up on it too quickly. I’m not chasing as much as you but I’m not going to make it easy. Get some legal advice. Re: Termination of building contract due to being unable to 18Oct 25, 2018 7:26 am I am in a similar situation. My builder promised a price lock till early next year but they are now denying to fulfil the promise as my land title has delayed. They are charging me 1k each month after August 2018, that would equate to 7k till march 2019 (expected site start). The price lock promise was advertised everywhere when we engaged them but unfortunately it is not mentioned in the contract. It was(still) mentioned on their website/blogs which they are not willing to consider. I paid 2k as initial price lock and I am in a situation to negotiate on the extra charges incurred due to the delays. If not, I’ll walk away to some other builder. I hope that you get your hard earned money back. Re: Termination of building contract due to being unable to 20Nov 01, 2018 11:42 am structuralBIMGuy I did contacted them to comment on the claims they had on their website for the price lock promise. but they are just ignoring my emails (commenting on other things but not on this). Instead, they have removed their blog on the price lock promise after i quoted it. I have lodged a complain on DBDRV website, but it looks like it takes months to get process. By then i'll have my land titled. - not sure how to handle it. $1000 a month till site start, i'll losse around 7-6k on top of what was agreed in the contract. Builder is Carlisle Homes. My garage door has started playing up recently. Sometimes (and getting more frequent) when I press the button to open it, it wont. The motor is an ATA GD0-6V3. Red and… 0 3013 Being an owner builder is no walk in the park. It’s a challenging endeavour that requires dedication and hard… 0 12421 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 17201 |