Hi everyone
I have signed a HIA contract - SA (Dec 2013) with builder for a knock down and rebuild and it was subject to Finance till 30 April 2014 and also paid for preliminary works. I have asked my Mortgage broker to help obtain the finance of $220k (stated in building contract) in which we obtained pending council approval.
I received the Engineer soil report in which the soil is very bad, spoke to a few friends in the building industry stated could be in the range of $40k to $55k. Builder stated $15k allowance above builder standard included in contract therefore I'm looking at least another $25k to $40k. As per the council rules, we can?t demolish the current house until planning approval is given for the new replacement and we just have more delays with council. I have been hassling for my selection and footing variation from builder but they don?t want to release it as they are waiting for council approval.
My intention of the $220k borrowed was for the building ($183k) + selection variance ($8k), demo ($8k), air con ($10k), paving & stormwater ($11k). All the other bits like curtains, tiling (got them, DIY).
One of the HIA clause points did state -"We/I tried our best to obtain finance."
What I am trying to ascertain is that I did obtain finance (approved) but only a portion towards building & selection variance and the rest was allocated to demolition / air con / paving etc. Due to an unexpected blowout in footings causes me to use up the other allocation, I don?t have any money left / air con and paving. Am I still tied to the contract? I know I am pre-empting and I should have (hindsight), get a soil test done first before signing any contract.
Such a stress building..
Any advice will be greatly appreciated.
Cheers
Irawin
I have signed a HIA contract - SA (Dec 2013) with builder for a knock down and rebuild and it was subject to Finance till 30 April 2014 and also paid for preliminary works. I have asked my Mortgage broker to help obtain the finance of $220k (stated in building contract) in which we obtained pending council approval.
I received the Engineer soil report in which the soil is very bad, spoke to a few friends in the building industry stated could be in the range of $40k to $55k. Builder stated $15k allowance above builder standard included in contract therefore I'm looking at least another $25k to $40k. As per the council rules, we can?t demolish the current house until planning approval is given for the new replacement and we just have more delays with council. I have been hassling for my selection and footing variation from builder but they don?t want to release it as they are waiting for council approval.
My intention of the $220k borrowed was for the building ($183k) + selection variance ($8k), demo ($8k), air con ($10k), paving & stormwater ($11k). All the other bits like curtains, tiling (got them, DIY).
One of the HIA clause points did state -"We/I tried our best to obtain finance."
What I am trying to ascertain is that I did obtain finance (approved) but only a portion towards building & selection variance and the rest was allocated to demolition / air con / paving etc. Due to an unexpected blowout in footings causes me to use up the other allocation, I don?t have any money left / air con and paving. Am I still tied to the contract? I know I am pre-empting and I should have (hindsight), get a soil test done first before signing any contract.
Such a stress building..
Any advice will be greatly appreciated.
Cheers
Irawin