When building a brand new house or extending an existing one, many homeowners opt to sign on with a licensed new house builder in Melbourne, as these people are experienced in completing the required work. Sometimes, however, unforeseen situations arise that require homeowners to cancel the contract they have signed with their builder, which can be a difficult process (as they are legally binding documents).
First, determine whether the “cooling-off rule” applies to your situation, which means that it has been under 3 days since you signed the contract. If it has, fill out a cancellation form that you can get from the builder or write your own letter if they didn’t provide you with one. Make sure that you send by certified mail to prove the date it was sent.
If more than 3 days have passed since you signed the contract, read through it to see whether the builder has specified any dates or criteria that enable you to cancel to agreement. Then, notify the builder in writing that you wish to cancel the contract. Either hand deliver or send the note by certified mail so that you know it arrives.
You will need to pay the new house builder for any materials that they had already purchased and for any work that they have already completed. Make sure that you request a formal bull and a receipt so that you can prove that these conditions were met.
Occasionally, a builder will refuse to cancel a contract. In these cases, it is best to consult with a lawyer to determine what the best course of action is. A lawyer will also be familiar with laws regarding contracts, right-to-cancel and cooling-off rules in your area, which can be of great benefit in winning your case.
