Sale and Purchase Agreements

[ari]

Has anyone had any experience with the purchase of land prior to issuance of titles?
My concern is the deposit...they wanted 10%, finally agreed to 5%(back in Feb) and the titles are still some way off. Now this $27,250 deposit could of been put to good use elsewhere.
Do Real Estate trust a/c's earn interest just like Solicitor Trust a/c's? Who's getting the interest?

[duncan macgregor]

quote:Originally posted by ari

Has anyone had any experience with the purchase of land prior to issuance of titles?
My concern is the deposit...they wanted 10%, finally agreed to 5%(back in Feb) and the titles are still some way off. Now this $27,250 deposit could of been put to good use elsewhere.
Do Real Estate trust a/c's earn interest just like Solicitor Trust a/c's? Who's getting the interest?

Thats why you have a lawyer to explain the ins and outs of each individual transaction. Get him to write up a conditional contract dont allow the real estate guy to do it. macdunk

[ari]

quote:Thats why you have a lawyer to explain the ins and outs of each individual transaction. Get him to write up a conditional contract dont allow the real estate guy to do it. macdunk

It has all be handled by a Solicitor, (don't just assume) and perhaps someone else can answer the actual question.

[barnsley bill]

quote:Originally posted by ari

Has anyone had any experience with the purchase of land prior to issuance of titles?
My concern is the deposit...they wanted 10%, finally agreed to 5%(back in Feb) and the titles are still some way off. Now this $27,250 deposit could of been put to good use elsewhere.
Do Real Estate trust a/c's earn interest just like Solicitor Trust a/c's? Who's getting the interest?

yes... and they are getting the interest.

[trackers]

Last time I put down a deposit they told me it was going in to a non interest bearing trust account; Maybe i just ran in to an honest, moral salesperson? lol

[ari]

Someone is getting the interest and it is not the purchaser as most transactions are settled within a couple of months. But you can bet that the professionals with large property deals have this well covered.
I would guess that the Real Estate company do get a slice as they push for maximum deposit they can get away with. I believe that when purchasing land (prior to title issuance) there should be no deposit as there is nothing to sell until plan is approved and titles issued, and could drag on for years.

This issue appears to be a closed shop, especially with Solicitors who will not admit to Lend Back schemes with banks and Trust a/c's bearing interest.

[duncan macgregor]

ARI, I look on it from a different angle to you. I dont care if someone makes a profit [or a perk if you prefer]in a business deal, as long as i win. The estate agent is to be used up to get you the lowest cost for the property that you can screw out of him or her.
Even go as far as cutting their commission that the vendor pays to get a lower price. The vendor is trying to sell the property early which places them in a weak position exploit that. Who cares about interest on a deposit that is only chicken feed to what really matters. If you buy and sell a few times deal with the same lawyer and agent and throw a bit their way you might get a surprize. macdunk

[ari]

quote:ARI, I look on it from a different angle to you.

macD...there was never any doubt that you wouldn't!

[fungus pudding]

Last time I put down a deposit they told me it was going in to a non interest bearing trust account; Maybe i just ran in to an honest, moral salesperson? lol

Real estate trust accounts are non-interest bearing. They must balance and are strictly audited. 10% is common as a deposit, but it can be anything agreed on. $1 if you like, although agents generally and quite sensibly push for higher. There is an advantage to them in that after 10 days they can help themselves to their commission.

[Jay]

I thought once it has gone unconditional then they can help themselves and then after 10 days if not passed already??