Land and house package question

Discussion in 'The Buying & Selling Process' started by Arctan, 25th Feb, 2021.

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  1. Arctan

    Arctan New Member

    Joined:
    25th Feb, 2021
    Posts:
    1
    Location:
    Sydney
    Hi guys, I am a property noob and in need some helps on land house package contract.
    The land part is straight forward so not much of concern.
    However the builder contract part there is one thing I am not too comfortable.
    The 10% of contract price of builder contract goes to a builder's business account not a trust account. I get that builders need to access the funds and buy materials to build the property. However the question for me is that if the builder decides to shut down to go busted then my 10% of hard earned cash would also be gone.
    Just wondering if there is a less risky way to deal with this?
    I am keen to hear all the opinions whether this is a normal practice in building industry. Obviously the builder is not a small firm but still I am a bit concerned that all the risks are on buyer's side.
    I have not signed the contract yet and this is the only major concern I have and I am sorry if this has already been discussed previously.
     
    Arctan, 25th Feb, 2021
    #1