We signed home & land package with a builder with separate contracts for the land and constructions. Now land is titled and settled. Builder is making excuses and floor plan has not been drafted ( we signed contract on September 2021). Communication with builder is not great and we now want to exit the building contract. We have paid $10,000 for building contract. How can we terminate this contract?
We realised there is a special condition as below:
- In the event this building contract relates to a land which was part of a home and land package, Owners are required to build with the builder or return the subject land to the builder if their circumstances change. In the event purchaser/owners decide to retain the land and terminate the building contract they will be liable to compensate builder for land procurement costs, sales, admin and marketing costs as well as loss of profit that the builder would have made on this project. The amount of this compensation can be upto $150,000 but not limited to $150,000.
- i) If the subject land is sold by the purchaser/owner and the building contract is rescinded or nullified the purchaser is liable to pay the price difference (sale price less purchase price) from the sale of the land to the builder. Builder has acquired this land via it's subsidiaries purely for the purpose of construction.
- ii) Builder has decided to forgo the uplift or profit on the land which in the event the owner do not build with builder, needs to be paid to the builder by the owner/s.
- iii) In the event of reselling the subject land prior to construction, the owners must resell it via the builder's subsidiaries.
Please guide if these special condition are valid on HIA contract. Is there a way out?
Any response and guidance would be highly appreciated.
Thank you