In this episode, we explain how preliminary agreements work in residential building projects and why they can create real legal and financial risks for homeowners if they are not structured correctly. We discuss when a preliminary agreement is caught by the Domestic Building Contracts Act, when it must be treated as a Major Domestic Building Contract, and why the $10,000 threshold matters.

We also break down common examples such as agreements for plans and specifications, the difference between builder-prepared plans and architect-prepared plans, and how preliminary agreements can become tied to the main building contract. This episode is designed to help Victorian homeowners understand when a preliminary agreement stands alone, when it becomes a collateral agreement, and what to look out for before signing anything.

This content is general information only and is not legal or building advice.