The importance of understanding your new home contract

The contract is the crucial document between you and your builder and one that should be understood very carefully. At Dixon Homes we want all our clients in Brisbane and around Australia to ask questions and make sure they agree exactly to the terms.

Before signing the dotted line, contracts can often be amended and an agreement regarding negotiations and counter offers can be made. It’s important to remember that the builder and the client have the same goals when settling on a contract and that is to work together. But to prevent misunderstanding and confusion, everything in the contract should be fully understood. We explain what a contract normally includes and covers and what to take particular note of.

Reviewing your contract

One of the most important areas of the contract to review is the specifications of your new home including the building components, fixtures and fittings. Things to check include:

–          The number of power points, taps, electrical and plumbing connections

–          Quality and colour of paint on different surfaces in the home.

–          The terms for obtaining finance and what happens should the mortgage application be turned down. E.g Return of deposit, contract is voided.

–          Standard terms and conditions. What process are there for delays, when payment is due, what is the procedure for making changes and alterations etc and what are the repercussions of breaches of contract.

If there is anything you are unhappy about in the contract or inclusions which don’t suit you these should be raised and the solution can often be reached. E.g the process for delays and what should happen if the builder runs over time.

There may be compensation clauses that can be negotiated here. Many customers also choose to have their solicitor look over their contract to see that the contract will suit the unique situation of the client and raise things which could have gone missed by the client.

 

WHAT DOES THE CONTRACT INCLUDE?

 A building contract will contain:

–          The scope of the works.

–          On site commencement dates and building period

–          The home plans and detailed specifications of the build. Includes measurements, drawings, and design documents. Specifications include the method of construction including materials, finishes and other fittings used in the building of the home.

–          The payment schedule including the final price and when you will pay.

–          Access to the property during construction

Please note this list in not exhaustive and there are many more items, terms and conditions included in each contract. Each contract we create is unique to the build, location and other factors. At Dixon Homes we will go through the contract with each of our clients very carefully and point by point which gives the opportunity to ask any questions and clarifications – the main thing is that you understand. This will not only prevent the unexpected, it will make for a smoother more satisfying home building process.

To get started on building your dream new home in Australia with Dixon Homes, call us today on 1300 10 10 10.