We had had finally received our contract after weeks of waiting. We had the contract and were about to go to bank and get our home loan finalised. Then we receive and email from out builder stating that we would be pulling out of the contract saying that we want to be " intimately involved”. The builder had advertised his company does custom home designs. Maybe this was false advertising. We had a few obstacles along the way but nothing major well we thought the issues are the following: 1. We asked the builder to take out the tiles and bathroom items because they were cheap; he was not happy and instructed us that he only uses his “preferred” suppliers. After some negation he came to the party after we formally wrote him a letter reminding him that we do not have any legal responsibility to his “preferred" suppliers and that its our house. 2. At draft 2, we identified everything we wanted and made changes so that the next draft would be perfect and signed off. However, that was not the case most changes were missed and they did another 2 drafts. 3. We received a phone call from 5 days after the contract was due from the builder stating the following 2 things. 1) apparently our BAL had some what come in at 29.5 by “someone” he would not name. I did refer him to our Intrax report section 3 page 16 which clearly states a BAL rating in 12.5 2) Then suddenly our energy rating did not meet the 6 star required for new homes being built in Victoria. I was somewhat confused as it had never been an issue during the whole design process. Surprise Surprise again he would not tell me who it was and what their position was. 4. We received the contract and I noticed some key items missing from both contract and final designs. When I rang him I asked him if he was going to fix the missing items. Than I asked about bringing the independent home building inspector initially he was ok then I asked him if it would be possible to get 5 days notice so that we could organise time off and the inspector to come. Next day he emailed us and said he was pulling out. After all of these issues, we were willing to let things slide then we received the email stating he was pulling out. We did not receive a letter of intent, nor was he willing to talk to us like adults. He just said he did not want to talk about it. We received an email from him today with a letter from his lawyers wanting us to accept the copy right of the design of the home and not go after him for our deposit back. Also as a sign of goodwill he will drop the amount owed for extra "drafting fees” that the draftsman wracked up, not us, to a sum of $1012.42. What to do under property law or contract law?