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Can you see that any delay in these items will impact on settlement date and also on your interest calculation in your feasibility study?
Body Corporate / Management Plan
It is hard to keep up with all different names that are used around world for Legal Entity that runs complex of units you have developed, however your legal advisor will let you know.
Just as out Towns, Cities and States need Rules & Regulations for all its citizens to live in harmony, so too does a small complex of units, condos, apartment etc.
What ever it is called in your part of world, is necessary for you to engage a legal advisor to prepare one for you, which will include preparation of a Budget to which you, as developer, will have to pay in a certain amount of money.
The reason I am giving this brief explanation on Body Corporate / Management Plans is because at Settlement you will get back some of money you put in to get Budget off ground.
In addition you will have paid Local Council, Utility etc other amounts of money that cover a set period of time. Once again you will get some of this money back at Settlement. They are generally referred to as “Adjustments at Settlement” and act as a reduction on cost side of your feasibility study.
So What’s Next?
Remember I told you earlier about Unit Plan that was lodged with Titles Office, well has it issued yet? Phew – we just got it today – great!
Now your conveyance expert has to let Buyers’ representative know in writing that you are ready to settle.
In addition buyers have to let their individual Finance Lenders know to have Mortgage Documents completed on time and finally a date has to be agreed on which all these differing parties can meet and settle.
Now I don’t want you to be concerned about all this stuff, but I do want you to know about it, so that you can understand and manage (yourself) and others who have to do all this work for you. Blowing your Top (blood pressure up) achieves nothing.
But understanding, on your part, achieves a great deal. Blowing your top, when you haven’t taken trouble to find out, makes you look foolish and unprofessional, to professionals you have engaged to do work for you.
So Do I Get The Money Now Or Is There More Colm?
Well, Lender Gets money actually – yep, lender gets his Capital Debt and Interest paid off first. And when there is no debt, all rest is yours. That is, your equity is returned to your account and that lovely Profit, you worked so hard to get.
Author & $1.2 Billion Developer, Colm Dillon, Has Written The Best Selling 'How-To' E-book, "Residential Development Made Easy," With Readers In All States Of The USA, Canada, Australia, New Zealand, UK, Ireland and 79 Other Countries. His Independent Web Site is: http://www.realestatedevelopmentcoach.com