Home and land question

Dear All,

I need you advice regarding the building process.
We've purchased a block of land , the builder signed the contract on behalf of the vendor , settlement perios is 60 days .
The building envelop is a bit difficult , therefore they've had to amend design .
It's been nearly 3 weeks since we've started the process , I hope the sketches and contract will be ready today .

The issue is that I would like to utilize ANZ breakfree package , however without the contract of sale , drawings and specs for the house I can't get the loan . Mu solicitor has extended the loan approval date .
He's suggestion is not to extend the settlement date at this stage because it might scary the vendor .

Please your advice regarding the house contract .
Let's assume that design is OK and my solicitor confirms that everything is fine from a legal point of view .

________________________________________________________________

The builder said that we'll sign the contract and than discuss specs , tiles , colours etc

Personally , I prefer to define everything prior to sign the contract to prevent any future discrepancies .

Please your suggestions how to proceed

Kind Regards
gprp
 
Sorry I am not sure about everything you are talking about - I am still pretty new to much of this, but I will help where I can.

Specs - usually (as fars as I know from my experiences) the contract will specify in general what is included, but not specifics. IYKWIM? ie, tiles should be written into the contract, along with the $$$ that may be used to cover this - but you will only actually pick out the type of tile later.

make sure the list of inclusions includes EVERYTHING you want and need. very important to get this right and make sure both parties understand what is included and what isn't - before you sign.

I am not sure about the loan issue - I don't know the product.
 
i think you'll find that the contract will give you a $$ price for items such as tiles - perhaps $30/m2 @ X metres - and then it is up to you to go out and choose the tile.

if you choose something that is $22/m, you will get a refund - but if you choose something $120/m then you will have to pay the difference.

this is how all building contracts seem to work (that i have come across) so that the builder doesn't get caught with someone kicking a stink at wanting the $120/m tiles at the $30/m price.
 
Thanks guys .
As far as I understand , you basically specify the pricelist for every item to prevent any hidden or unexpected costs

Kind Regards
gprp
 
Dear All,

I need you advice regarding the building process.
We've purchased a block of land , the builder signed the contract on behalf of the vendor , settlement perios is 60 days .
The building envelop is a bit difficult , therefore they've had to amend design .
It's been nearly 3 weeks since we've started the process , I hope the sketches and contract will be ready today .

The issue is that I would like to utilize ANZ breakfree package , however without the contract of sale , drawings and specs for the house I can't get the loan . Mu solicitor has extended the loan approval date .
He's suggestion is not to extend the settlement date at this stage because it might scary the vendor .

Please your advice regarding the house contract .
Let's assume that design is OK and my solicitor confirms that everything is fine from a legal point of view .

________________________________________________________________

The builder said that we'll sign the contract and than discuss specs , tiles , colours etc

Personally , I prefer to define everything prior to sign the contract to prevent any future discrepancies .

Please your suggestions how to proceed

Kind Regards
gprp

I'm a builder so i hope i can help (though i build in Perth not in Victoria)...

1. A builder can't sign a building contract on anyones behalf. Is it a reputable builder?
2. It's normal for you to do 'selections' of internal finishes after signing a building contract (typically called pre-start selections). However, be sure to have a building contract, building specifications sheet, working drawings and an Addendum to the Specification which should outline what is and isn't included when read in conjunction with the contract drawings. Only after receiving all of these should you sign the building contract if you are sure everything has been included to your satisfaction.
3. Generally a contract to buy land is separate from a building contract. Both typically have clauses for finance so if you have 60 days to settle on the land then that will be 1 loan. The Building contract will generally give you 30-45 days to produce evidence of finance which is 30-45 days after both parties have signed the contract. You should also be looking for an industry association contract such as a HIA or MBA building contract.

Hope this helps!
 
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