Anyone having trouble getting back their security deposit?

[sunsu]

We bought a new home back in 2006 from Starlane that required a $1000 security deposit. We were told by our lawyer during closing to expect the deposit back within 1 year. It has been 3 years now and the builder is taking their time reimbursing us. We called them several times only to get the excuse that it will be ready next year...

Anyone experience this? Is this normal? Is there any action we can take?

This is absolutely the worst builder we've had experience with and we have worked with 2 other builders already, which never required this deposit.

thanks.

[homie27]

what's the deposit for?

Originally Posted by sunsu

We bought a new home back in 2006 from Starlane that required a $1000 security deposit. We were told by our lawyer during closing to expect the deposit back within 1 year. It has been 3 years now and the builder is taking their time reimbursing us. We called them several times only to get the excuse that it will be ready next year...

Anyone experience this? Is this normal? Is there any action we can take?

This is absolutely the worst builder we've had experience with and we have worked with 2 other builders already, which never required this deposit.

thanks.

[joejack]

Originally Posted by homie27

what's the deposit for?

I believe it's the grading deposit.

[rgauvin]

Originally Posted by joejack

I believe it's the grading deposit.

what is a grading deposit? I paid no such deposit when I bought my new house.

[patrob]

Funny that you ask as I just called my builder today asking about it We paid a $500 grading deposit back in Dec. 06 & still waiting for our money

In our previous house bought in 1998 from Aspen Ridge, we did not pay a grading deposit.

[BrianT]

I'm surprised that the builder didn't just roll it into your down payment?

[GregS]

Grading has to do with the lay of the land and how water run-off will happen when it gets too wet.

Grading may take a few years worth of seasons to properly evaluate.

Once the grading has been assumed by your municipality, your builder is to return the deposit you would have paid as part of your closing costs.

Not all municipalities require one, but I think you will find that most will.

It took 2.5 years before I got mine back.

Contact your municiple planning office to find out if your specific area has been assumed by the municipality.

And as always, this is NOT the place to complain about your builder. Please use Tarion and your lawyer for that.

Thanks.

[oakvillehomeowner]

you may also find that the builder pays a deposit to the municipality, and that you pay a deposit to the builder. there's no reason the builder can't give you your deposit back before they get their deposit back (other than cashflow) and as some of you have found out, in some instances the builder is in no hurry to return the deposit to you, even after he's had his returned by the municipality.

[generalinq]

It's normal. It takes time to get it back..even more than 3 years sometimes. As the other poster mentioned, not all builders ask for it. I paid $1200 with Starlane. BUT..here's the magic BUT..you have to FAX your builder a letter saying you want the security deposit back when it's available. Keep the proof of FAX. Every builder requirements for requesting it may be different so contact them and ask them what you need to do. A friend I know totally forgot to request theirs and after over 10 years asked for it and got it back.

[mech2008]

Originally Posted by generalinq

It's normal. It takes time to get it back..even more than 3 years sometimes. As the other poster mentioned, not all builders ask for it. I paid $1200 with Starlane. BUT..here's the magic BUT..you have to FAX your builder a letter saying you want the security deposit back when it's available. Keep the proof of FAX. Every builder requirements for requesting it may be different so contact them and ask them what you need to do. A friend I know totally forgot to request theirs and after over 10 years asked for it and got it back.

Good to know. So how long it takes for the return cheque after you sent fax?
Thx.