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Hi from Brisbane, new to this site

Discussion in 'Introductions' started by suebris, 3rd May, 2016.

  1. suebris

    suebris New Member

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    I would appreciate some advice on how a contract works with a Joint Venture agreement. I own a development site and the buyer wants to pay some money up front and the balance after the units are sold. Is there a typical process and when does the land settle? Thanks
     
  2. Leo2413

    Leo2413 Well-Known Member Premium Member

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  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    There are many ways for this to be structured. Does the developer need to borrow? And if so use your property as security?

    They could essentially develop your land or you could sell it to them.
     
  4. suebris

    suebris New Member

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    Thanks for your reply, initially they were to have investor funds but now need to borrow some funds and mortgage the property. They don't want to pay the full amount up front, just a deposit, develop and sell the units, paying the balance from the proceeds.
     
  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    They will be able to borrow using a complex legal arrangement which basically allows you to let them use your house as security for their loan.

    Consider the risks.
     
  6. suebris

    suebris New Member

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    It does have an element of risk, as is the nature of property development. Would a contract for sale normally be signed at the start to settle with the balance of funds paid at some date maybe in 12 months time when development is expected to finish.
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    @suebris I would go in and see an expert such as Terry or similar about this issue to work it out in detail. I wouldn't even attempt to try and get comprehensive advice re this issue on a forum. It could be a disaster.
     
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  8. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Depends on the situation. There would be more than a standard contract of sale.
     
  9. suebris

    suebris New Member

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    Thankyou for your help, i'm trying to get an idea how it works to have some input into the HOA prior to formal agreement then definitely an expert to advise.