WA Builder - How to Get Deposit Back?

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jerome

Member
30 March 2017
2
0
1
We signed up with a builder and paid $2000 deposit to get a contract to arrange finance with bank. The price for site works we agreed upon in the pre-contract was $12000. When the contract arrived, we noticed a price change for site works and it was $23000.

We immediately cancelled the pre-start and application for finance. The consultant said we will get the money back that they don't use for site works. Total area for the block is 280square meters.

Quotes from other builders for site works before I signed the pre-contract is $12000, that's how I know it is about right. I had everything we agreed upon on paper and signed by the consultant.

Because we could not reach an agreement between the building consultant and myself, the general manager got involve. He went through the contract and said they can't change the figures from $23000 because it's a small block and that's about right just to do the site woks.

This block is level, nothing on it. I got a quote from a different builder for site works they promise they can do it for $12000 and I might get money back. I have sent a copy of the pre-contract agreement with the consultant's signatures on to the general manager. After seeing the pre-contract, he agreed they will build the house for the agreed price. Before he agreed to build at the agreed price, he said it's impossible to build the house.

I told him that I don't want to build with them anymore because I find it difficult to trust them and am concern what other things were lied to me. One moment it was impossible to do the site works for $12000, ten minutes later it's possible. I am concern that I may get a sub standard house because they will try and get the money back.

My question is, what can I do to get my deposit of $2000 back because he said they already spent $4000 for shire cost? We did not get to final contracts because we did not attend the pre-start to make our colour selections.
 

Lance

Well-Known Member
31 October 2015
852
123
2,394
Hi Jerome,

I guess the difficulty is if they are again willing to do the work for $12000 and you walk back on the pre-contract they may try to recover the additional $2000 to cover the $4000 shire cost (which seems a bit high). I personally think it might be easier to let them do the work and pursue an action against them if the work is substandard.
 

jerome

Member
30 March 2017
2
0
1
Thanks for the help. I have signed up with another builder under the same umbrella and the deposit will be transferred but not for the same price because it is a better quality home. The first builder cater more for first time home buyers more affordable homes.