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  1. #1
    Join Date
    Oct 2016
    Posts
    125

    Default How do you buy a land that is not yet titled off someone?

    Hi sorry if it is very unclear, I am just wondering how money changes hands when a land is not titled and vendor only has paid a deposit to the developer?

    Say vendor bought land for $250k. Paid developer say 25k deposit, and 225k due upon title which is say in 6-12 months.

    Now if you buy if off vendor for 300k for example ...

    Are there any special clauses you need to include in the S&P?

  2. #2

    Default

    Subject to title being issued.

    If you're buying, I would definitely have a sunset clause on that sucker.
    Free online Property Investment Course from iFindProperty, a residential investment property agency.

  3. #3

    Default

    if bank is involved they wont hand money over till title available as they cant get mortgage registered assuming you cant register to existing title?

    I knew a case where title never eventuated and S and P was left hanging with deposit left with agent

  4. #4
    Join Date
    Oct 2016
    Posts
    125

    Default

    Hi thanks,
    Sorry I didn't get a notification and wasn't aware of your helpful replies.

    So I am suggesting that the contract does not bind until title is issued? There will be no agent fees as this is a private sale.

    And if I may ask what's the best way to word the sunset clause on this? The title is due "sometime in the second half of 2019".

    Regards

  5. #5

    Default

    the wording is critical and a lawyer is required to get it right.

  6. #6
    Join Date
    Oct 2016
    Posts
    125

    Default

    I just heard from the other party's lawyer that the money goes to vendor's lawyer who then pays the developer's lawyer.

    Now I don't really want to pay the vendor's lawyer all the money to sit there for 6 months ... there must be a way to word the S&P so that i don't pay anything more than a deposit until title is issued?

  7. #7

    Default

    That doesn't sound right. You would pay a deposit, it will be held in trust, but you won't settle until title issued. This is all very common so have your solicitor draw up the classes for you.


 

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