What is a preliminary agreement and how is it different from a deposit?

A Preliminary Agreement is an agreement between yourself and your Builder to carry out a specific range of works at an agreed price.  These works are usually related to the preliminary stages of building such as site contour surveys, preparation of plans, council planning approvals etc.  With an Activa Homes Group preliminary agreement, you get what you have paid for and have joint copyright in all materials.

So how is a Preliminary Agreement different from a Deposit?  A deposit can only be claimed once a building contract has been signed and home indemnity insurance has been issued.  The deposit can only be a maximum of 6.5% of the building contract.  A Preliminary Agreement however stands apart from the building contract.  After the works as described in the Preliminary Agreement are complete, there is no obligation for you to sign a building contract.  If you do decide to proceed with the build, the items already completed will be noted on your contract as already having been paid for.

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