Need Help Urgent - Purchased Land

Hi All


Purchased a Lot as a nominee in August Last year:

Original buyer deposited 10K to the estate which he wanted to take back only as cash.
I paid the amount in cash and got the land for what he bought for in Dec 15.

He also provided me with a letter stating that I paid him 10K against the lot.

Now my broker says that we can't use this receipt towards the deposit, which is fair.

However the wuestion is:

1. Do I get loan for 209K or 199K, since I technically only owe 199K to the estae?

2. Is there a way I can get the original receipt changed to my name?

Thanks All

 

why urgent?

1. this is a question for your broker.
2. no

 

Its urgent because the land is due to be titled in a couple of weeks.

I have asked the broker and he says that the bank will provide loan on 209K. So I thought I will ask it here and someone may be able to shed some light on this.

Anyways thanks for your inputs.

 

One would assume that your settlement statement should show that 199k is left owing on the land.

 

Still got plenty of time.

If the contract was entered into more than 12 months ago they might lend based on the valuation, but otherwise I would think they will lend on the contract price.

 

If they lend on the contract price will I loose 10k, and the original contract was signed in December 2015?

The estate is currently selling the same sized lot for 298K. Couple of my friends valuation was a lot higher than what they paid for H&L.

 

They may lend based on teh value then, to a maximum of the contract price.

Why would you lose $10k if they lent on the contract price? You would just have to put more money into it.

 

Thanks for you inputs. Theres alot of clarity now.