Are you about to build a new home? What can you do to protect yourself?
The news is currently filled with “builder collapsing, leaving buyers out of pocket, without any hope of recovery.”
Before signing that building contract, seek legal advice to understand the legal document that you are signing. At Castrikum Adams Legal we can provide you with a building contract review provided by a lawyer and licensed builder, offering you the complete understanding of the contract.
The questions we ask and the advice we offer, begins with these simple questions.
- If I sign the building contract and pay the 10% deposit, what do I receive in return?
- Has the builder provided me with Home Builders Compensation Fund insurance BEFORE payment?
- Is there an agreement for arranging development approvals that must be fulfilled before the building contract becomes valid. What do I receive for my money under this agreement?
- How long is the builder’s price valid for? Is the price validity restricted by conditions?
- Is the price only valid if we achieve an approval to build (DA and Construction Certificate) within a defined period.
- What happens when it takes longer than the validity period to achieve Council approval? Can a contract be terminated, or is a new price required to be agreed?
- When the contract requires a new price to be agreed, how much extra is reasonable?
- After signing the building contract, am I allowed to withhold money to make sure the builder achieves the outcome?
- What can a buyer do to protect their deposit to ensure the builder progresses the approval process in a timely manner?
- Does the building contract require the builder to provide contract risk and public liability insurances policies? What do these policies cover and has the builder provided you with a copy?
These are questions we consider IMPERATIVE to ask your builder when starting the journey.
Ask the questions PRIOR to signing that building contract because once the building contract is signed, you cannot change the terms. Their answers may determine if they are suitable for you.
Be aware of your risks and responsibility to secure your future, before you embark on what may be the biggest expense of your life.
Come and talk to us at Castrikum Adams Legal, for your smart solutions.