Grounds of Cancelling House and Land package?

Hi everyone,
Just wanted to ask if we can still cancel our house and land package from the builder, what happened is, when the builder offered us the package they immediately ask for 5% for the “land” only. They said we needed to pay the 5% to make sure that we get the land, with the broker’s approval we gave them 5% for the land only.
So after 2 months when the land is ready for
Exchange and Settlement. we found out that the builder didn’t pay the 5% and the land developer is asking us for 5%. They won’t honor the receipt from the builder as obviously they have not received the money. Now we only have few days left and the developer will offer the land to other buyers.
The main reason we entered the contract is because of the land (location, size and price). If we lose the land can we still get our money (5% for the land) back from the builder and cancel our building contract? We badly needed an advise as these are all new to me. Thank you in advance.

 

Why would you pay the builder for land when they dont own it and are not the ones selling it to you? What did your solicitor say?

 

They showed us the location of the land with the developer, they explained to us that the land is already reserved to them so they will nominate us. We didn’t had a solicitor then, they gave us an invoice and receipt thinking that its a smooth transaction. I had no idea about any of it before I just thought that we needed to reserve the land. Now if they can’t refund the 5% or pay the 5% to the land developer and lose the land we wanted to cancel our package with them. Is is possible to cancel the contract?

 

Do you have a solicitor now? Who knows whether you can cancel the contract? No one knows what you signed. including you, it seems.

 

Only possible to answer after seeing what t you agreed to

 

Spot on. What is the contract?

It does not sound like a h&l contract. It sounds like a land contract as you explained it. Why would you not get legal advice?

 

It sounds like there are two relationships here -
1. Developer and Builder for the land purchase/deal and 2. Builder and you for the H&L package.

What paperwork or contracts did you sign with the builder before you handed over the 5%? Did they give you a section 32 for the land? In the contract does it outline how the builder is supposed to handle the funds for the land purchase?

You said the was supposed to be settlement for the land - who is this with, the land developer or the builder? Who is the vendor on the contract of sale? If you still want that piece of land, you may be able to purchase it directly from the vendor perhaps but you’ll need to come up with the deposit and finance for the land purchase settlement? You may need to chase the builder for the other funds you’ve already given them.

Do you know if the land developer and builder are related parties? Does the builder hold other lots in the same development?

Your contract should also outline the conditions for termination of the contract, they are usually very specific.

 

the question is do you think/feel/is it a case of fraud or administrational issues?