Good evening all,
I am hoping we have some knowlgeable members viewing this post.
We have signed a land contract for what seems a nice block on paper. Approx 645m2, 15.45m frontage and 30m deep.
Title is meant to be relaesed in March 2013. Several people have said that they feel it won't release until at least June next year. Our building sales rep (whom has land sales management experience) says that is rubbish.
We have several concerns;
Building contract, of which have not yet signed, states we are liable for the building phase being held up after 120 days of the contract being signed (rep said it was not in the contract and that we would not be charged anyway)..... that would make it early Feb if we signed it now. Sounds suss!
We are concerned that we may be up for expensive fees re rock excavation and removal and also structual piers if it is a "P" type soil, seeings the lot is on the side of a hill/ incline. Soil tests have not yet been recieved by builder. They have assumed already it will be p type soil.
We have been advised by friends (whom have industry experience) that they would never sign a building contract until it was in their name, and also that the "unknown" factor of the soil type coupled with the chance of hitting rock in "Stonehill" seems like a good 50/50, we would be up for in excess of 30k with structural piers + rock.
We are on a tight budget as it is with deposit and extras like fencing + gardens etc as it is.
These possible issues have really got us worried and we may have to abort the whole thing.
Issue now is, are we tied to the land by signing the land contract "subject to finance", which we put down as the entire construction loan??
Do we legally need to attempt to gain finance approval to purchase the land?
Or, because we only paid the $500 holding fee, are we able to cancel the whole thing?
Your help is appreciated and needed.