Get the contract right on first home

SINCE the announcement of the Federal Government’s HomeBuilder Grant and the increase of the Queensland Government’s First Home Owner Grant for regional areas, it is no surprise that first-home buyers are jumping on the opportunity to get into the property market by building a new home.

The HomeBuilder Grant provides eligible applicants with a contribution of $25,000 to build a new home or substantially renovate an existing home.

The Queensland First Home Owner Grant offers first-home buyers in regional areas, including Cairns and surrounds, a $20,000 grant. Both the First Home Owner Grant and HomeBuilder Grant can be used together, and can help form part of your home loan deposit.

When completing extensive renovations or building a new home, you are required to enter into a building contract with the builder completing the works.

A building contract will stipulate the scope of works – better known as the “what, when, and how much” – for the project.

Preston Law Associate, Sean Webb, said anyone signing a building contract should ensure they fully understand the contract before signing it.

“In an ideal world, your build would go smoothly, people do what they say they will do, there are no variations or cost blowouts and there would be no disputes,” he said. “But we live in the real world – unexpected things happen, many contracts don’t clearly specify the scope or the parties’ rights and obligations, costs increase, and parties have disputes.”

Domestic building contracts can be upwards of 20-30 pages long, plus the QBCC Consumer Building Guide and additional schedules are often attached.

“Owners may not be familiar with their rights and obligations under building contracts, but regardless of your level of experience, it always helps to have it reviewed by your lawyer just in case. A couple of hundred dollars spent at the start could potentially save you tens of thousands down the track,” Mr Webb said.

“This goes for commercial building contracts too, and even for experienced builders.

“We know as builders and construction companies, you’re great at what you do, but it always pays to make sure the contracts you use cover all your rights and responsibilities, and protect you, your business, and your bottom line.”

Preston Law has decades of experience assisting owners with a range of building and construction matters.

We can help you from when your contract is drafted, throughout the build and also with any disputes that may arise.

For property buyers who are about to sign a building contract, we are offering fixed fee building contract health checks.

The health check includes Preston Law reviewing the contract, ensuring you understand your rights, and providing recommendations where appropriate.

FIRST HOME STEP: Potentially save thousands with the right advice from the start with Preston Law.

“Owners may not be familiar with their rights and obligations under building contracts, but regardless of your level of experience, it always helps to have it reviewed by your lawyer just in case. A couple of hundred dollars spent at the start could potentially save you tens of thousands down the track.”