Vendor Failing to Provide Required Information to Lodge The Home Builders Grant

Hi all,

I am from Melbourne, and I've recently (Dec -2020) signed a contract for a townhouse. Eligibility of this property for the Home Builders Grant (HBG) was a key factor in entering into the contract.

The vendor is a publicly listed company, which outsources each development phase to different builders. At the time of contract signing, vendor told me that this property is eligible for HBG, and the required details of the builder will be provided to me in mid-January 2021. However, the vendor has failed to provide me with the builder's details to date. The vendor's explanation is the selection process of a builder has delayed. I have several emails where I followed up with the vendor and vendor committing that required details will be provided in January, February, March and by the end of this week. My lawyer has also followed up via email.

Now the deadline for HBG applications fast approaching (14-April), I am getting a bit concerned that the vendor may fail to provide the required information.

My lawyer advised me that I have no legal grounds to proceed if the vendor fails to provide the required details as this requirement is not included in the contract (though I have several emails).

What are my options other than bearing the loss of 25k (assuming the vendor has already priced the majority of HBG rebate to the sale price) ?

Comments

  • +5

    Tough one, if they are incompetent enough not to provide the information by the due date then probably not a company you want to continue dealing with.

    Ask your solicitor for your options but doesn't sound like you can get out of the contract without cost.

    You might be able to get out of the contract if you state you needed the grant to be eligible for finance as most contracts are subject to finance.

  • Maybe ask your Lawyer to explore if they can obtain an extension from the HBG pending your being able to advise of the Builders name.

  • +3

    Cant offer legal advice but the building industry is crazy in Vic right now, record demand, supply and labor shortages. Imo your vendor has had great difficulty finding a builder to complete the build for the prices vendor has based their contracts on. They probably want you to pull out of the contract.

  • Can you please check with the SRO. You might be allowed to provide other kinds of evidence to support your application, maybe a statutory declaration. Also, ask your lawyer to send in a formal letter, advice then that if they withheld the information which caused a loss, they maybe liable to recompense. Follow up with a claim in VCAT. All of these steps might assist with your request to the SRO.

  • +6

    My lawyer….

    This is who you should be directing your questions to. This is what you pay him/her for.

    • The more you ask your lawyer, the more you pay. Seems sensible to try and gather information before discussing with your lawyer.

      • The situation outlined in the OP is not exactly complex and is something any competent lawyer experienced in conveyancing should be able to advise on off the top of their head.

        What is the point of hiring a lawyer if you still need to go away and do your own research? The lawyer should be providing the OP with the "available options" - not the other way around.

  • find another builder/lawyer before deadline?

  • send them a VCAT notice you have enough evidence via email that they will provide you that information, contact SRO and explain it to them and seek an extension.

  • +5

    The April 14th deadline is for the application only. You then have until the 30th of April 2023 to provide the documents for review.
    This is the relevant page on the SRO website: www.sro.vic.gov.au/owning-property/australian-homebuilder-gr… .

    Edit:
    These factsheets from the Treasury site have a few more details around the key dates:
    - https://treasury.gov.au/sites/default/files/2020-12/HomeBuil…
    - https://treasury.gov.au/sites/default/files/2020-12/HomeBuil…

  • +2

    While applications must be submitted by 14 April 2021, it does not mean that all supporting documents must be uploaded by then. You can continue uploading your supporting documents, as they become available, beyond 14 April 2021.

  • +1

    My lawyer advised me that I have no legal grounds to proceed if the vendor fails to provide the required details as this requirement is not included in the contract (though I have several emails).

    is this the same lawyer that you had draft or review the contract before you signed it?

    • Unfortunately, yes.
      I should have included this to the contract.

      • see but how is that YOUR fault?

        why is it not THAT LAWYERS fault for not doing the job you payed them to do - to advise you if a contract was ok?!

        (i have just had this same situation with relatives and am appauled and confused by their equally submissive reaction.)

        • why are you still using this lawyer?
        • this lawyer gave you bad advice in the first place; why are you assuming that the advice they are giving you now is any better?
        • why are you not demanding recompense from this lawyer for their shoddy lawyering?
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