Browse Forums General Discussion 1 Apr 04, 2017 1:05 pm We bought a house and land package with the land still to be registered by end of this year. We have paid the tender price. What happens next? do we pay 10% deposit on the land, when does this happen? after land registration date or before i.e. days after we gave our tender? Thaks Re: Payment process of Unregistered Land 3Apr 06, 2017 10:59 pm I paid $1000 holding deposit. Signed contract and paid the remaining 5% deposit. There should be a clause that it is conditional subject to finace approval. Do not let it go unconditional until you have your final loan approval. Once land registers, the bank will pay the balance. If you are contributing more than 5%, your share also needs to be paid on the settlement date. Building Simonds Prague Re: Payment process of Unregistered Land 4Apr 07, 2017 4:48 am Horse I paid $1000 holding deposit. Signed contract and paid the remaining 5% deposit. There should be a clause that it is conditional subject to finace approval. Do not let it go unconditional until you have your final loan approval. Once land registers, the bank will pay the balance. If you are contributing more than 5%, your share also needs to be paid on the settlement date. Building Simonds Prague I dont think they will accept "subject to finance approval" for a land which is going to register at the end of year? They will ask for preapproval. Isnt it? That's what i was told Re: Payment process of Unregistered Land 5Apr 07, 2017 6:07 am They will, and i believe its standard in a contract. Pre approval is different to unconditional finance. I have read where bank will not give unconditional loan even if they have already given you preapproval. When i bought our land its still for registration. Signed contract nov, got loan approval April, and settlement in sept. Depending on the state of the property, Bank will not also give unconditional finance until they can do valuation. So between nov and april, it was a constant communication between my solicitor and theirs. We keep on extending the date of when it will become unconditional. Just ask a solicitor and maybe they can explain better the risks if you make the contract of sale unconditional at this stage. Building Simonds Prague I apologise for any confusion, but your understanding is correct. We approached our situation differently based on advice from… 11 53177 Thanks very much! And would the landscaper/contractor generally involve the engineer or is that something the client would do? Thanks for your help 2 10008 regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11850 |