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Where's my Grading Deposit? New Home Buyers, here's the truth.....
A grading deposit is an amount the builder collects from the buyer on closing to ensure that the final grading (the slope and drainage around the house) meets the municipality’s requirements.
Here’s how it works:
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Purpose: After construction, the lot’s grading needs to be inspected and approved by the city to make sure water flows away from the house and toward the proper drainage points.
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When paid: It’s usually collected from you by the builder on the closing date of your home purchase — shown in your statement of adjustments.
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Amount: Commonly ranges from $500 to $5,000 depending on the builder and location.
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When refunded:
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The builder submits the grading for inspection to the municipality after construction is completed.
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Once the city approves the grading, the builder gets the release letter.
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The builder then refunds your deposit — often 12–24 months after closing, sometimes longer if there are delays with inspections or seasonal work (like sod or driveways).
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If you’ve already closed and want the deposit back, you usually need to contact the builder’s customer care or accounts department and ask if grading has been approved and when refunds are being processed.