Ill explain my situation:
April 2015 we put a 10% cash deposit down on our block of land, no finance required, we just got preapproval with bank.
Our land wont be registered until probably December this year, if we are lucky.
Last month we chose our builder, Coral, we paid the initial deposit of $1750 and now in process of adding in all the extras we want into our build.
My question is: since our land is not registering till the end of the year, is it okay for us to go ahead and get our coral contracts drawn up, sign and pay our 5% deposit now? Or do we have to wait until our land registers?
If we pay the deposit now, would we need to go forward with unconditional finance approval for this or can we pay cash for this deposit?
Thanks everyone 😊
From memory they will not write up contracts until they have done soil testing and surveying so they know site costs. And in our case that couldn't happen until after land registration,( or close to registration when they are allowed access to land). We then paid the 5% deposit before it was sent off to council.
We also waited until we had unconditional approval from our bank after reviewing contracts before we paid the 5%deposit. That deposit we laid out if our savings and was reimbursed when when loan settled.