PPA, Preliminary Contract, Prelim Document V Actual Build Contracts

When you initially hand over a deposit to a builder you will sign a preliminary document

This should be a basic costing and sketch of the home you want to build.

This is not a full build contract but an agreement for the builder to go ahead and spend money preparing a full contract. Always check that the price quoted in the preliminary document has not changed when you sign the full contract.

You cannot apply for formal bank approval until you provide a lender with a copy of the fully executed build contract.

Once you have signed a building contract with the builder you have pretty much committed to building the home.