New Custom Built Home Deposits
I tried finding some answers with the search tool but couldn't come up with any useful answers.
Anyways wife and I are close to signing a contract for a custom built home. This will involve some big deposits:
50k deposit at signing
50k deposit at permit stage
70k deposit at foundation back fill
100k deposit at finished roof phase.
The balance at closing.
Builder will own the land and is responsible for construction of the house.This is not a construction draw mortgage scenario.
We hear the stories of builders going bankrupt and people losing out on their deposits. This has us worried even though we trust the builder.We voiced our concern to a lawyer and they say that only 40k deposit is insured (Tarion warranty).
I'm just trying to get some opinions from people that did similar large deposit structures. Did you have any clause that can get all the deposits back? Or did you just risk the large deposits and hoped the builder wouldn't go belly up?
Maybe some builders can chip in with some comments as well.
Thanks in advance.
Anyways wife and I are close to signing a contract for a custom built home. This will involve some big deposits:
50k deposit at signing
50k deposit at permit stage
70k deposit at foundation back fill
100k deposit at finished roof phase.
The balance at closing.
Builder will own the land and is responsible for construction of the house.This is not a construction draw mortgage scenario.
We hear the stories of builders going bankrupt and people losing out on their deposits. This has us worried even though we trust the builder.We voiced our concern to a lawyer and they say that only 40k deposit is insured (Tarion warranty).
I'm just trying to get some opinions from people that did similar large deposit structures. Did you have any clause that can get all the deposits back? Or did you just risk the large deposits and hoped the builder wouldn't go belly up?
Maybe some builders can chip in with some comments as well.
Thanks in advance.