All Topics / Help Needed! / Deposit payable on a new build – first purchase

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  • Profile photo of Hank84Hank84
    Participant
    @hank84
    Join Date: 2009
    Post Count: 12
    December 13, 2013 - 9:52 pm

    Hi All,

    Just wondering if anyone could give me some advice to put my mind at rest.

    I've got a contract ready to be signed for a unit in Richlands, QLD. It's sort of a town house development and is due finish construction around March.

    I have paid $1,000 deposit for the developer (AV Jennings) to take it off the market. In the contract I received now it has a term along the lines of :

    Deposit payable $1,000 and

    Further deposit payable $9,000 at finance date…

    I rang my mortgage broker and because I am using the $15,000 government "Great Start Grant" as my deposit this is not possible. The sales agent advised he is happy for me to change the wording to " … further deposit payable $9,000 at settlement". I assume this puts a liability on me to make sure the $9,000 is still payable if the contract falls over? But if it doesn't settle for whatever reason then surely I dont have to pay the balance of $9,000?

    If anyone has any advice I'd appreciate it. I feel a bit nervous about the deposit thing and dont want to end up losing $10k if it falls over or if my finance cant get approved in time etc…

    Thanks,

    Hank

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    December 13, 2013 - 11:14 pm

    read the contract carefully. based on what you have said if the contract falls over there would be no settlement and no further deposit payable, but what other clauses are there. Get a lawyer to review.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    December 14, 2013 - 6:34 pm

    Surely your Solicitor would have reviewed the Contract before you had signed it anyway.

    Your Broker won't ( hopefully) provide legal advice but should be able to tell you whether the loan will proceed or not fairly quickly.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of KristyHKristyH
    Member
    @kristyh
    Join Date: 2013
    Post Count: 3
    December 14, 2013 - 9:55 pm

    I just put a $1000 deposit on a block of land with $9000 due at finance approval, however the contract fell through under finance and I got my $1000 back.  But definitely get a solicitor to have a look through the contract just to be on the safe side! 

Viewing 4 posts - 1 through 4 (of 4 total)

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