Browse Forums Building A New House Re: Worst Case Scenario after initial deposit- FairHaven Hom 10Nov 02, 2018 8:23 am samex1962 Hi all, Looking for some advice/experiences, I'm looking to build with Fair Haven Homes and wondering what the worst scenario will be apart from losing my deposit ($1500) should I decide to cancel before I go to Tender. The preliminary contract has conditions from the actual contract (after tender) so yeah pretty daunting like liable to pay 20% of the price should I cancel at any stage. Now, I got in writing from them that the worst case will be losing deposit should finances fall-through but they want to get a comfort letter now from Vanguard to begin with. is this normal? Do I need to watch out for something here? I also wanted the assurance should I change my mind and decide to go with a different builder altogether where finance is not an issue, I have heard generally it ok as long as I haven't gone to Tender/Contract, but want peoples advice/guidance My block doesn't title until June 2019 TIA Hi, Apart from the finance issues. I would suggest you to confirm your title date. My title was expected Feb 2018. Hasn't happened yet. It may be delayed till next year and i am paying $1000 per month of delay to the builder. 8 out of 10 people i know had their title delayed for at least 6 months. Big developers like Lendlease or Stockland are okay. But i would not trust anyone else. Hope that will help. Re: Worst Case Scenario after initial deposit- FairHaven Hom 11Feb 12, 2019 10:53 am For anyone looking at this for information these are the standard terms with any builder. I began the same process with another builder and left before tender and lost my initial deposit until i fought it. I was given it back due the house i wanted not fitting on the block like the sales consultant had said it would so their error not mine. I also have built with fairhaven and paid my deposit under similar circumstances above and Fairhaven honoured their word and did not charge the build price increase the day after i paid my deposit. As to when i come to title dates, you need to evaluate the price increase in the build cost and the price holding fee together. I personally found that paying the holding fee for going 4 months over time before site start was thousands of dollars less than the holding fee i paid. Land deposit 14 Nov 2015 House deposit 4/9/16 Land title 15/5/17 Quote signed off 28/1/17 Colour selection 21/2/17 Tender appointment 28/3/17 Developer Building approval ??? Site start 11 July 2017 We are looking to do a KDR with fairhaven homes, Have seen plenty of good reviews about them pre construction and plenty of negative reviews about them during contruction… 0 18038 In NSW the maximum deposit for building work is 5% until the builder provides HBCF insurance 1 4821 Ask for references and speak to them. If they are defensive or try to avoid the request, walk. 1 74701 |