SA developer delays with land settlement .. then won’t settle until construction loan approved

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Deeva

Member
12 April 2018
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Hi just curious to know is anyone else has had this
issue.
My partner and I are in a sticky situation where we
are buying a home and land package.
Everything has been a disaster and error upon error
and there is no one apologising for mistakes made.

Anyway issue we have presently is the fact the
developer changed minds and now won’t
settle land until the bank approves the construction
loan. We were firstly asked that the land to be settled
by mid last year before moving into construction loan.
This was a split contract for land first then construction.
The contract stated this factually as well.
There was nothing that allowed for the developer
to change the process but they did. Now they won’t sertle
And our Bank has already approved land loan. Come
Mid November and our conveyancer investigates why
Nothing has come through for the land.
Titles are all ready to go but the developer was holding off.
Our bank won’t approve construction until we settle with land.
The developer won’t settle now until construction side has been approved


This has caused major upset with bank and the
decision madeBy the developer to hold off has
ensured our bank approval had expired. We now
Have to get another appraisal and valuation of our
block Again and Send through all the appropriate
application Papers again. This has held us up for
6 months and we hoped this would have been
smooth sailing considering we have been royally
screwed over by the land agent in the beginning
which only showed her out to be disloyal and
misleading liar as well!!!

We are worried the bank won’t approve the
construction due to all the delays.

What can we do???
 

Rob Legat - SBPL

Lawyer
LawConnect (LawTap) Verified
16 February 2017
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Gold Coast, Queensland
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I'm a Queensland lawyer, and I don't practise in SA property law. Each state is different, so if I'm off the mark, I apologise.

You need to get a SA property lawyer (not a conveyancer) onto this as soon as possible. You're after what's called (at least up here in Queensland) 'specific performance'. If the developer is refusing to settle and it is not a condition of the contract that the construction loan be approved/something with a similar effect then the developer is likely in breach of contract. You either need someone to convince them to settle, or take them to court for an order requiring them to do so.

Alternatively, and it doesn't sound like you want this, but you can also explore your options for terminating the contract for the developer's breach and taking action to reclaim your deposit (if they refuse to return it).
 
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Rod

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27 May 2014
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Conveyancers are only of value when transactions run smoothly. They make sure the right forms are used and actions happen when they are supposed to. Anything at all beyond this needs a lawyer.