Hi from Brisbane, new to this site

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

 

@Terry_w

 

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.

 

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.

 

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.

 

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.

 

@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.

 

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

 

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.