Browse Forums Home Finance 1 Sep 09, 2010 12:02 pm Hi All, We are now getting close to sorting the building contract with Metricon and they have send us a copy of a standard HIA contract so we can have a read through (as preparation). We noticed that the standard contract is NOT subject to finance, which concerns us a lot. Our loan will be a construction loan and to get the loan approved the bank needs approved building plans and a fixed price contract/quote from Metricon. However, to get those things we would need to pay Metricon a 5% deposit first, and sign the contract. It does not really make sense to sign a contract before you get your loan approved. Did other people have this issue as well, as I can't imagine that we are the first people with this issue? Thanks for your help! Cheers, Carola Re: HIA standard contract and construction loan 2Sep 09, 2010 2:25 pm My HIA contract states at Clause 8.0 "If an amount is inserted in Item 11 of Schedule 1 then this contract is conditional upon the Lending Body providing to the Owner ......" which to me is a subject to finance clause. View our blog at: http://room4acubby.blogspot.com/ Re: HIA standard contract and construction loan 3Sep 09, 2010 5:43 pm Hmm, interesting. I've been looking for that clause, but in our example contract clause 8 does not mention anything like that. It is all about making sure the money is deposited in a security account. Maybe we should just wait to see what our contract will look like, and discuss it with our solicitor. Re: HIA standard contract and construction loan 4Sep 14, 2010 7:52 pm You should be able to negotiate that into it. Most of the contracts we see have a subject to finance clause where almost all of the deposit is refunded if finance is not approved. You might want to get a pre-approval in place and then seek formal approval once the council approved plans and final constract are ready. The biggest challenge will be if you take out a loan and then run out of money - you'll have an incomplete security and lenders do not like this so you can get stuck.… 2 19114 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16571 10 12325 |