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1st home buyer but new build has no progress.

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  • 1st home buyer but new build has no progress.

    Hi all, hope I posted on the right place.

    I would like to get insights here about our predicament. We have bought a brand new house in Takanini in April. The frame was up then so we figured out that there would be no problem with the vendors completing the build.

    Agent represented that house will be completed in July and CCC will follow after 4 weeks. The house is almost finished that the house is up but there seems to be no progress at all from July.

    And here comes the dodgy part: every time we ask for updates, the agent asks us to follow it up ourselves using our solicitor. There was a reply in August saying work is underway. But ever since our solicitor never had a reply from the vendor's solicitor. There was even a time where the agent asked me to contact the builder,which I did, and the builder's reply: "contact your sales agent"

    We have a sunset clause on the 31st of January but if this goes on until December, I would think there will be no chance in hell they can deliver a house by sunset clause.

    My question is: is it worth it waiting or just ask the vendor through the agent (since they are not replying through our solicitor) to just straight away mutually cancel the contract so we can move on.

    We are in a very frustrating situation where no one is helping us get the information we need. We are getting thrown around like a boomerang but no where to go. We have prepared our next deposit and withdrawn our kiwisavers and other investments so as we speak we are losing money.

    We have a baby on the way too on January so this is quite time critical.

    please do share your 2c, will be highly appreciated.

  • #2
    What to do depends on a lot of information that you have not shared.


    What you've written suggests that if you're not getting a completed house if you walk away you will struggle to get your deposit back. How much do you have to lose it you walk away?

    What is the current value of the house (as if complete) vs. what you paid? There is a chance that if prices have risen substantially the builder is waiting for 31-Jan-18 in order for the sunset clause to take effect which would enable them to sell the property at the current market price.

    have you reviewed your options with your solicitor? did you use a good one or a cheap one? - this is when a good one is the preferred option.

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    • #3
      Our solicitor is quite procative with us. They told us that they kept on trying to contact the other party but to no avail. Bascially we are on an unconditional contract and the only thing we can do is wait for the sunset clause.
      completed house vs uncompleted house value is about 20-30k difference. But the other houses in the same atea had been on the market for quite sometime and not yet been sold.

      Also the solicitor said it is OUR choice whether to cancel or keep waiting after the sunset clause. But that would be like holding us for ransom isnt it if they decided bot to go ahead worh the build.

      Comment


      • #4
        Difficult situation to be in.

        Once again it highlight the risks of buying off the plan, or even buying something partially built.

        If it were me, I'd be getting really militant by now.

        I'd be naming and shaming the builder. And I'd be doing the same with the real estate agent.

        Don't suppose the builder is a Master Builder or Certified Builder by any chance?
        Squadly dinky do!

        Comment


        • #5
          Originally posted by Davo36 View Post
          Difficult situation to be in.

          Once again it highlight the risks of buying off the plan, or even buying something partially built.

          If it were me, I'd be getting really militant by now.

          I'd be naming and shaming the builder. And I'd be doing the same with the real estate agent.

          Don't suppose the builder is a Master Builder or Certified Builder by any chance?
          are you buying of a builder or developer? may find the lack of progress is because of non payment

          Comment


          • #6
            Originally posted by Davo36 View Post
            Difficult situation to be in.

            Once again it highlights the risks of buying off the plan, or even buying something partially built.

            If it were me, I'd be getting really militant by now.

            I'd be naming and shaming the builder. And I'd be doing the same with the real estate agent.

            Don't suppose the builder is a Master Builder or Certified Builder by any chance?
            The builder is a master builder and we bought off from a vendor.

            I am still giving them the benefit of the doubt, before I name and shame them. Could I complain in to the reaa? Will I have grounds to do so?

            Comment


            • #7
              Originally posted by jimO View Post
              are you buying of a builder or developer? may find the lack of progress is because of non payment
              This is what we are afraid for. About 7 houses just stopped construction from the same builder

              Comment


              • #8
                There was an article in the listener just recently similar to yours called 'house of cards'. It's the wild west out there and what should be the safest way to build isn't so with a lack of real guarantees and consumer protection. Builders in those franchises seem to hit the wall around the 5 year mark (mentioned in the article) and with NZ's lack of a third party mandatory guarantee their clients haven't got a leg to stand on. The building guide website is worth a visit.

                cheers,

                Donna
                SEARCH PropertyTalk, About PropertyTalk

                BusinessBlogs - the best business articles are found here

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                • #9
                  By the way, the agents were originally from ray white but then went rogue and started their own company in the middle of this. Without even advising us. Dodgy.

                  Comment


                  • #10
                    Originally posted by donna View Post
                    Builders in those franchises seem to hit the wall around the 5 year mark
                    i used to do work for a franchise owner, he ran a successful building co for around 15 years then bought into a franchise, he got rid of most of his workers, some became contractors for the franchise, he also used all his subbies from the previous company, over about 3 years all the subbies were replaced with cheaper guys, the contract builders built 2 to 3 houses and discovered there was no money in them, they were promised 6 or 7 houses a year but whats the point when your not making money, These group home co's love new builders just going out on their own, they dangle a big carrot in the shape of lots of work but they are also told how much they will be building the house for and thats why they are chucked up in a hurry.

                    Comment


                    • #11
                      Try the media or at least the threat of the media. John Campbell or fair go?

                      Comment


                      • #12
                        Whose the builder? Some of us in the know might be able to shed some light. When housing companies like Horncastle Homes are shutting up shop in Auckland things are not good. From my experience when building stalls it is usually because the subbies are not being paid. We have been watching a build in Beach Haven that has been stalled now for about 7 months. Network Builders have a sign out front and they appear to be still building elsewhere so who knows what's happened with this place.
                        You could always try the Council and see what progress there is with the inspections.

                        Comment


                        • #13
                          Originally posted by Meehole View Post
                          Whose the builder? Some of us in the know might be able to shed some light. When housing companies like Horncastle Homes are shutting up shop in Auckland things are not good. From my experience when building stalls it is usually because the subbies are not being paid. We have been watching a build in Beach Haven that has been stalled now for about 7 months. Network Builders have a sign out front and they appear to be still building elsewhere so who knows what's happened with this place.
                          You could always try the Council and see what progress there is with the inspections.

                          The builder is named ravenstone homes. They have a portfolio of hones from takanini to flatbush

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                          • #14
                            Have you purchased the property directly through Ravenstone Homes? You mention vendor so wonder who is selling the property to you?

                            Comment


                            • #15
                              Originally posted by Meehole View Post
                              Have you purchased the property directly through Ravenstone Homes? You mention vendor so wonder who is selling the property to you?

                              Purchsed the property through a vendor

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