Browse Forums Building A New House Re: Signing land contract without subject to finance 3Jun 02, 2010 11:30 pm Sierra, Thanks for sheding light on it; I will get in touch with a lawyer - first thing tomorrow. Even I was suprised but sales person kept insisted that he can't accomodate "subject to finance" in our land contract. Cheers Re: Signing land contract without subject to finance 4Jun 03, 2010 10:08 am Our contract for both building and land had the subject to finance clause in it already. we didn't have to request it was put in. I definately wouldn't sign the contract without it in there. It would be interesting to see how fast they put the clause in there, if you refuse to sign it as it is. contract signed: Nov 09 Released to Construction: 23 Jul 10 Slab poured: 9 Aug 10 Frame completed: 30 Aug 10 Windows & Gutters: 7 Sep 10 Bricks: 15 - 23 Sep 10 Roof: 24 Sep 10 Gyprock: 20 Oct 10 Lockup: 25 Oct 10 Kitchen: 27 Oct 10 Tiling: 6 - 9 Nov 10 Painting: 17 Nov 10 Carpet: 30 Nov 10 PCI: 15 Dec 10 Handover: 17 Dec 10 https://forum.homeone.com.au/viewtopic.php?f=31&t=35943 Re: Signing land contract without subject to finance 6Jun 03, 2010 11:01 am maybe it's just part of a pushy sales technique? Ours was really really flexible about it - I was super conservative and petrified we wouldn't be approved (for no good reason!) and he kept reassuring me that we could extend it, gave us 21 days instead of the standard 14 etc etc Re: Signing land contract without subject to finance 7Jun 03, 2010 11:53 am Hi, We were really eager to get our plot of land and there was only one plot left that developer had to purchase back from their other building dept, and due to that, we were asked to sign the land contract not subject to finance whicg we did, and we didnt have any trouble, as we were pretty confident that our current house would act as as a sure guarantee for the land. We have our land now and all our finances re the land and the house with the banks are ok. Is there a reason why you have to get the land not subject to finance? Maybe that might help you accertain if these people are doing it for the right reasons. Building The Amberlea 44 Fusion Home http://www.amberleadream.blogspot.com Land settled May 10!! Building commenced 30 Jun 10. Re: Signing land contract without subject to finance 8Jun 03, 2010 12:11 pm We signed up without the finance clause on our land also. Im pretty sure everyone in our small estate did to as the vendor/developer didn't want any contracts subject to finance. As long as you have a pre approval from the bank etc you should be pretty ok. Its only if you know you wont be able to loan the $$$ you shouldn't do it. Smaller developments/estates prefer not to allow finance clauses as they don't want the hassle of contracts falling through they need certainty so they can go to the bank to get the money they need to start/finish the development/estate. NO EXPECTATIONS, NO DISAPPOINTMENTS! Build Thread: viewtopic.php?f=31&t=27441 Landscaping Thread: viewtopic.php?f=19&t=43969 Re: Signing land contract without subject to finance 9Jun 03, 2010 12:13 pm just got of the phone with Sales person, according to him as a builder they are getting land from other land devloper, he can only get unconditional land contract for us to sign. I am really confused !! Re: Signing land contract without subject to finance 11Jun 03, 2010 1:04 pm I think its quite similar to our case, if the sales people were to get land from somewhere else, they hae to be gauranteed that the deal will go through. Maybe the sales people had to pull it back from the land dept which they otherwise would have sold it as just land only to the public. Confirm if this is the case, whatever it is, they cannot afford for you not to take it if they have to do something to get the land for you. Building The Amberlea 44 Fusion Home http://www.amberleadream.blogspot.com Land settled May 10!! Building commenced 30 Jun 10. Re: Signing land contract without subject to finance 12Jun 03, 2010 1:18 pm I wouldn't be relying on 'pre-approval'. There are a lot of sales that fallover due to the buyer having pre-approval, and then the banks changing their lending requirements. At the end of the day, pre-approval isn't worth the paper it's printed on. It was a very common occurence when the economy went to pieces in 2008. My advise would be to read the contract very very carefully. A cash offer contract is legally binding, and you could be up for a lot of money if it's accepted, and you don't have the money to go ahead with it. Be sure you have a good Settlement Agent/Conveyancer or lawyer who can advise you accordingly. As much as you may want that land, it might be best to walk away. Oceanic with Nautilus upgrades. Handover 8 September 2010 Re: Signing land contract without subject to finance 13Jun 03, 2010 1:48 pm When we signed our offer to purchase the block, they did not include "subject to finance" as well. The developer was Stockland, and the sales manager verbally assured us that if we cannot get finance by a given deadline (2 months i think) they would just offer it to someone else as are so many others waiting to snap it up. We already had pre-approval at that stage, but as always its not even worth the paper its printed on. 12 March 2010 - Land titles received 3 April 2010 - Signed building contract 14 April 2010 - Prestart 28 April 2010 - Loan approved 30 June 2010 - Slab completed 27 August 2010 - Brickwork completed 22 September 2010 - Roofing completed 30 September 2010 - Internal walls plastered 12 October 2010 - Lock Up 19 November 2010 - PCI 26 November 2010 - Handover 29 December 2010 - Moved In https://forum.homeone.com.au/viewtopic.php?f=31&t=32584 Re: Signing land contract without subject to finance 14Jun 03, 2010 2:14 pm Our land contract did not have a subject to finance clause and the developer would not allow it as the blocks were selling so quickly. There wasn't anything I could do about it. I brought the land and I got the loan. Our house thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=18335 Re: Signing land contract without subject to finance 15Jun 03, 2010 2:58 pm Thanks alot to you all for sharing your situations, I am still waiting on lawyer to give me any feedback on my contract so fingers crossed what she will come up with. I reckon our situation is as simillar to others who didn't have "subject to finance" in their land contract - as the land lots are getting snapped up and builders just middle man who is selling home + land package and don't want a sitution where contract falls over. For who didn't have "subject to finance" in their land contract - did you guys have any hassle from land developer / builder after you sign the contract ? and how much deposit you have to put in? we are paying 10 % , is it normal? Re: Signing land contract without subject to finance 16Jun 03, 2010 3:21 pm As borg said, subject to finance by June 30 or whatever. Thats what we added. We also added subject to soil report being ".." although we never actually got a oil report done Custom European Cabinets - Melbourne Kitchen Specialist PM for business details as website currently being updated! Our Crazy Owner Builder Journey! Re: Signing land contract without subject to finance 17Jun 03, 2010 6:11 pm Personal preference, but I would never buy land without a subject to finance clause, even if I was a cash buyer. If they want more certainty, then put a date deadline on it - say 14 days. It gives you an out clause, for whatever reason, that cannot be disputed, and generally extends far beyond the Cooling Off period in timelength. With most land contracts you forego your right to the Cooling Off period if you get a solicitor to look at the contract so it is handy to have a way out if required. You hope that it is not required to be used this way, but for all you know there could be some rediculous covenant or Council-imposed restriction that you don't find out about until its too late. Built a Tribeca 44 with the Big M Sales Accept 15/06/09, Contract Signed 24/09/09, Site Start 23/11/09, Slab 11/12/09, Frame 12/01/10, Roof 20/01/10, Lock-up 30/03/10, Fixing 30/04/10, Handover 27/08/10. Re: Signing land contract without subject to finance 18Jun 03, 2010 6:49 pm hi, i did a contract with no subject to finance but our incomes were more than the lad contarct and we had a heavy deposit. that said, if your close to limit, low deposit, dont sign or go find some moe land Re: Signing land contract without subject to finance 19Jun 04, 2010 9:05 am jimmalenko Personal preference, but I would never buy land without a subject to finance clause, even if I was a cash buyer. If they want more certainty, then put a date deadline on it - say 14 days. It gives you an out clause, for whatever reason, that cannot be disputed, and generally extends far beyond the Cooling Off period in timelength. With most land contracts you forego your right to the Cooling Off period if you get a solicitor to look at the contract so it is handy to have a way out if required. You hope that it is not required to be used this way, but for all you know there could be some rediculous covenant or Council-imposed restriction that you don't find out about until its too late. If I had of gone with your way of thinking I wouldn't have been able to buy in my estate. If the bank tells me thy they'll loan me 600k, then borrowing 200k for land is not an issue. Seems to be common sense? Our house thread: https://forum.homeone.com.au/viewtopic.php?f=31&t=18335 Re: Signing land contract without subject to finance 20Jun 04, 2010 11:10 am Quote: If the bank tells me thy they'll loan me 600k, then borrowing 200k for land is not an issue. Seems to be common sense? Borrowing capacity is only part of the equation, the other part is the banks valuation, in the bank valuation thread someone had thier land undervalued by $42k, so in that case without a finance clause you would have to find $42k more than before of which the bank will not give you due to thier valuation. that being said I would say 95% of the time the banks valuation comes pretty close to sale price. If I was to win Lotto, I would build with a different builder, now to win lotto You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16736 you were just referred to get advice from your solicitor. This is a legal matter. Separately, why would you use a buyers agent for a house and land package? 3 58479 This certainly doesn't look good. I would be engaging with an independent inspector to have a look at this. As for the unscheduled site visits, most builders are quite… 1 28433 |