Forums / Property Investing / General Property / selling before finnishing the building.

Viewing 3 posts - 1 through 3 (of 3 total)
  • Profile photo of Tracy LeeTracy Lee
    Member
    @tracy-lee
    Join Date: 2006
    Post Count: 19

    If I was to build on my block of land with a project builder or builder, can I sell at any stage of the building process. and if so do I then take the money in full and leave the competion to the new owners or do I take a deposit and have to complete the project myself. Any feed back welcome.

    Profile photo of JFisherJFisher
    Member
    @jfisher
    Join Date: 2007
    Post Count: 143

    As with a spec’ home done by a builder you would take a deposit and balance on completion. Even a custom built home isn’t allowed to be paid in full until the C of O is issued.

    As you would have signed a contract with the builder then it would be also your responsibility to complete the transaction with the builder.

    You may also find that the potential purchaser’s lendor would insist on with-holding at least a portion of the money until the job was completed to the satisfaction of the new owner.

    You will also have to take out a warranty insurance policy on behalf of the future occupants if you are an owner/builder. If you engage a builder to do the complete house then his warranty insurance will be transferred to any subsequent owners.

    I am in Vic so some warranty advice may not be applicable in other states.

    Profile photo of AUSPROPAUSPROP
    Participant
    @ausprop
    Join Date: 2003
    Post Count: 953

    I tried to settle mid term once and ran it past my lawyer… even tho buyer and seller was wiling the builder was unwilling to agree to assignment of the building contract.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.