Knockdown Rebuild with Major Builder Not Council Approved

D6C1 on 06/09/2023 - 21:04

So I have been working back and forth with the builder and the council to try to get approval for a knock down rebuild, but the council has knocked it back and I have since withdrawn the application.

The builder is keeping my 5% deposit and charging a additional 25% builders surcharge on top due to cancellation. Approx $5k

What are my options? Do I pay the 25% surcharge or are there any laws protecting the customer (me) in this instance.

Have no idea at this point and not sure if going through the legal route is going to help or achieve anything. Hoping for someone with experience or in the know to provide some guidance.

Thanks

Home & Garden

Comments

  • Hybroid on 06/09/2023 - 21:05
    +12

    What does your agreed contract say in a cancellation situation?

    • Jimothy Wongingtons on 06/09/2023 - 21:22
      +6

      Op came here for a feel of the room before reading the black and white iron clad

      • TheMindsetTraveller on 07/09/2023 - 01:00
        +9

        sometimes it's all about the vibe

        • Thrift on 07/09/2023 - 11:08

          Clearly the council took issue with the fake plastic Victoriana-feel lace, fake chimney, big aerial, and cubby house granny flat.

  • Pcosmic on 06/09/2023 - 21:09
    +5

    Shouldn't you get the approval first before engaging the builder?

    • FoxJump on 06/09/2023 - 23:23
      +2

      that's not how they work.
      you figure out a nice plan
      you pay, the haggling begins.

      The smart person familiarises themselve with councils reqs and has a good idea if the plans are good or not; before paying the deposit

  • spackbace on 06/09/2023 - 21:13
    +1

    You cancelled a contract and are surprised there's a cancellation fee?

    • mskeggs on 07/09/2023 - 07:56
      +6

      To be fair, I am sure the builder was saying “she’ll be right” about council, so both parties were relying on the approval of the council.
      It isn’t unusual for a customer to rely on the other parties greater experience to know what could go wrong.
      It would be sensible to read the contract before signing, though.

      My number one, all time hit I tell my kids is “just think about what could go wrong” and see what it says. Though sometimes it is hard to predict the sequence of events when things go wrong, or lawyers would all be out of a job.

      • spackbace on 07/09/2023 - 12:48
        +2

        To be fair, I am sure the builder was saying “she’ll be right” about council

        Depends what the expectations were. If OP was one of those unrealistic home owners, who want the world but didn't realise it doesn't work with the council regulations, then it'll get knocked back

  • Protractor on 06/09/2023 - 21:15

    FLOW CHART<>Horse before the cart. >Lesson learned. >You lose out

  • AndyC1 on 06/09/2023 - 21:31
    -4

    Did you consult your financial adviser before signing the contract? Did you get legal advice before signing?

    • Jake D on 07/09/2023 - 11:12
      +1

      What would a financial adviser possibly have to say about a construction contract?

      • Euphemistic on 07/09/2023 - 11:22
        +4

        “You need life insurance”

    • eek on 07/09/2023 - 11:32
      +4

      Financial advisor? They'd probably just try and sell you income protection insurance instead.

  • djkelly69 on 06/09/2023 - 21:33
    +4

    Unless there is something specific about this situation in your contract, I would be arguing the contract has been frustrated (ie. not either party's fault) by the inability to get council approval. Therefore contract gets cancelled.

    • Porker on 06/09/2023 - 22:16
      +2

      I'm guessing the OP could pick a different house (on assumption they've picked a templated house from a volume builder).

      Also, OP is either building multiple houses or heritage area to trifger Council approval. Otherwise a single house woule be reviewed by a building surveyor.

      Sounds more like lack of homework by OP

      • FoxJump on 06/09/2023 - 23:25
        +4

        OP could also just modify their plans to address council's concerns and continue.

  • Stopback on 06/09/2023 - 22:21
    +3

    Wait till builder goes bankrupt

    • Jimothy Wongingtons on 06/09/2023 - 22:53

      Maybe won’t be that long the way the economy and builder stability is going in this crazy age

    • FoxJump on 06/09/2023 - 23:25

      his debt will still be due.

  • HardQuiz on 07/09/2023 - 03:59
    +3

    Why did the council reject your application?

    • EightImmortals on 07/09/2023 - 07:28
      +3

      He didn't have enough money to pay them off obviously. :)

  • Cabrinha on 07/09/2023 - 08:28
    +1

    This doesnt answer your question directly about the deposit but can you get a Complying Development Certificate (CDC) instead which essentially bypasses council i.e In NSW you can refer https://www.service.nsw.gov.au/transaction/apply-online-comp…

    I had similar issues about 14 years ago council kept denying the application and adding ridiculous constraints, after months of back and forth we pulled the application and got a CDC instead. It was approved in 48 hours 🙄 and building could commence.

    • Euphemistic on 07/09/2023 - 08:45

      That’s going to depend on the actual reasons the council is rejecting. No certified is going to approve something that is so far outside the zoning regs it wouldn’t ever pass. Where you can win, is like your case where there are silly things the council is dragging it’s heals on.

    • Central Intelligence on 07/09/2023 - 08:46

      This is totally not true at all.

      I have blocked multiple CDCs that were non-compliant.

      The surveyor usually sends a nasty letter stating there is nothing you can do, but most people just believe it and don't actually go to the council to see if the regulations have been complied with.

      :-D

      My neighbour is none the less wiser to why their applications get rejected. It is the council that will ultimately reject their CDC application. I am uncertain if that surveyor gets blacklisted too, but probably not since they tried a few more times and failed.

      How should I say it? It's a bit like the admissibility rules regarding evidence, you can get past the hearsay rule, but if you violate the opinion rule or other such rule it still gets blocked; but if your barrister (you) does not object, then it will be like you conceded, especially if the judge (council) did not pick up on the issue. lol…

  • Euphemistic on 07/09/2023 - 08:42

    Why was it knocked back and why did you withdraw? If you withdrew because ‘it’s all too hard’ or you couldn’t compromise the design that’s on you. It certainly sounds like it’s on you, so you pay.

    If the builder failed to do something to get it passed, that’s the only time it’s on them and you shouldn’t have to pay.

    Normal situation for contracts and council approval is a lot of negotiating. It all depends on what’s in the contract and the actual reasons you want to cancel the contract.

    • Central Intelligence on 07/09/2023 - 09:00

      The usual one is that they don't want to lose the minimum clearance on the sides.

      Most people don't want to pay extra to have the architect/engineer redraw the plans as it would now be custom. Though, if this was one of the major builders they usually do it for free but tell you that the rooms might not be the same size on one side of your house; and the slant of the roof might be slightly adjusted.

      I have successfully done the above, but it was quite tedious and does not look as good as the original plan. I would not recommend it having been through it. The rooms on one side are way too small… I guess that's what free buys you though. (Investment property so I'm not too worried.)

      Furthermore, usually no amount of fudging or CDCing the plans will fix minimum clearance issues.

      • FoxJump on 07/09/2023 - 11:23
        +2

        yeah but .. the side setbacks are known before hand. why .. would you even try to get them to budge?

        • Central Intelligence on 07/09/2023 - 14:07

          Yeah, the setbacks should be known, but sometimes there is always that one person who is marketing themselves that they can get stuff jammed through. They will ask for more money to send in your application again…

          Sometimes it does get through I would guess because I saw on Youtube somewhere that person with the house overhanging another person's property.

          https://www.news.com.au/finance/real-estate/brisbane-qld/ver…

          Found it boys.

        • Chandler on 07/09/2023 - 14:35

          Needed to pay the council bribe relaxation to build a patio that has >5m clearance as it was less than the 6m they wanted…

          The house itself has <2m clearance on that same boundary… smh
          (the boundary in question is at ~45° to that side of the house; triangular-ish shaped block, hence weird-ness)

  • Davo1111 on 07/09/2023 - 09:02
    +1

    How can anyone respond to this if you havent even read the contract, or explained why it was rejected?

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