Here is the case , say Mr.X buy a house worth 500K from developer, he only place 50K as d/payment, 8months later the house is estimated to be completed in 16months time (24months from S&P date) but Mr.X never bother to get a mortgage loan coz he only plan to sell the house off upon completion n VP. the developer start sending him letter to ask for progression payment or else will be charged 10% p.a on the amount owed.

Mr.X work out the schedule when n how much the developer will ask from him periodically for progression payment, he also work out how much he will have to pay for interest for the next 16month for each progressive payment tht he didn't pay. it works out to about 30K.

at the same time, he also work out the cost and loan interest and penalty he has to pay get a loan of 450K (legal fees),MRTA, loan interest till VP and penalty to pay to bank when he sell off at VP, works out to about 30K too, if not, more (+-35K).

coz Mr.X buy the 500K house at discounted price ( launching price 550K and now developer selling price 600K) , he expect to sell at 600K upon VP (which the property will appreciate further...)

here is the question :

1. can Mr.X do that by not getting any loan without getting legal action from developer?
2. Can Mr.X sell the house , may be with developer's help to save on agent's fee without getting a loan ?
3. How will the procedure be ? Buyer get a loan to pay to developer ( selling price 600K enuf to cover the progressive interest tht Mr.X owed developer )and give him the remaining ?

pls discuss, this is just an idea, it may not work, but pls tell us why it will not work and how to make it work ?

no

if u don mind pls explain y ?

I'd finance it with ZEC with no or short locked-in period. Interest will be higher throughout the tenure but who cares, it's a flipper

interesting, how would developer allow this ? 1st is not paying till VP find buyer . 2nd is helping to sell at lower price than developer's selling price , tht's provided all developer's units sold out dy...

I don't think developer will allow U to default payment for such a long period. If I'm not mistaken, there is a clause in the S&P that states that if buyer doesn't pay up within X months, they have the right to reclaim ownership of the property without giving anything back to the buyer.

answer:
no

read your s&p 1st...
u must get loan within a 'reasonable time'..
1% charge if fail to obtain the loan n refund the balance.

what if the construction project progress well ahead of schedule, you will need to paying developer faster than you expect.

which clause it it ?

i tot tht is if u FAILED to get any loan, but Mr.X actually got a loan approved.


then even better rite? can sell faster n pay less %%

Schedule H clause 10.

u mean the buyer will lose the d/payment and ONLY the d/payment ?

www.kpkt.gov.my/kpkt/borang/lesen/Schedule_H.pdf

I tot u said MR.X not going to get any loan? Thats y he is paying for the late payment penalty isnt it?
If the loan is approved, the bank is going to release the money lo....no story oredi. U cannot ask the bank to stop payment becoz the developer is going to rush the bank to pay up.

bank approved doesnt mean bank wil release money..u need to sign doc with bank with agreement 1st...

ehz?? loan approved doesnt means all paper work done?
TS, when u say loan approve means just initial state only issit? No paperwork done? Then it doesnt count as loan approved rite? hahha...sorry i m confused and sorry if i confused anyone..

loan approved means bank has gone through everything (CCRIS,NPL etc)of the borrower and show that the borrower is eligible to take the housing loan wif XX bank. Till the borrowee sign the letter offer and arrange for the loan agreement to sign wif lawyer, then the bank will give instruction to the lawyer, after every document proceeded, then will hav to wait for the disbursement of the loan.

This post has been edited by sam0919: Jun 28 2008, 09:10 PM

Loan approved and Mr.X signed the paper but asked the lawyer not to procceed with stamping coz he wanto see which way works better, he worry if project got abandoned, he will hav to pay bank loan for unlimited time...