As topic said, is the 10% deposit (in developer trust account) refundable if the developer goes bankrupt? Can the developer use the money in trust account before settlement?
If that is refundable, when is the buyer have right to take the money back?
ThanksDepends on the terms of the contract.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Depends on the terms of the contract.
As well as what they actually did with the money (remember they went bankrupt for a reason)
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
The contract may allow them to access the funds to complete development works, or it could be held in trust until completion. I have seen purchasers lose their deposits as the developer has used the funds to develop, only to go bankrupt – leaving the buyers without any recourse.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Generally deposits are held in trust for the vendor. This means it is still your money until certain conditions are met – such as completing the contract.
I just reviewed a contract which allowed release of deposit and I quickly struck this clause out as there is a risk the vendor won’t complete and could go bankrupt or someone else could put a charge over their property and it may be impossible to get the money back.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Quite a familiar situation, especially after the pandemic and the liquidation of many companies
And if a person had some benefits in the process of running a business, and then decided to sell it, does he receive any money for being a manager for more than 5 years?
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