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Development and Strata Services
Funding / Tripartite Deeds
It Is All About the Finance
Funding
Construction loans are generally loans which are to be used to finance the construction of a building.
Typically, developers obtain a loan to assist with buying a development site on which they intend to develop. They will also seek either an extension of any current loan or an entirely new one to assist with the costs of the construction.
Usually, and commonly in today’s market, financiers set down various preconditions which must be satisfied prior to allowing monies to be drawn down on a construction loan.
Such preconditions can include:
- a minimum number of presales,
- evidence of a building contract with a reputable builder,
- evidence of a current Home Owners Warranty Insurance Policy, and
- a Builder Side Deed (also known as a Tripartite Deed), amongst other things.
The documents which set out the terms and conditions of loans of this nature are usually complex, particularly where there are intercompany and personal guarantees and various forms of security. In light of this, it is recommended that legal advice be obtained as to the terms of such loans and mortgages prior to entering into agreements which contain serious obligations and can have disastrous consequences for those who do not understand the terms they are entering into.
Tripartite Deeds
Builder Side Deeds, also commonly known as Tripartite Agreements, are agreements between the developer (or Principal), builder and financier which set out the parties’ rights and obligations with respect to the completion of building works and events of default, in particular by the Principal under its loan or under the building contract.
Where there is a loan agreement, the financier may require that the builder enter into a Builder Side Deed in which the builder allows the financier specific powers to step-in and cure rights where there is some default by the Principal.
There are numerous issues to consider in such agreements and the proper advice as to the terms of such agreements is highly recommended (and those terms negotiated if necessary) before they are entered into.
With all such documentation relating to loans and otherwise, where numerous terms and conditions exist and must be complied with, it is critical you obtain clear and impartial advice so that you can understand what is expected and so as to avoid common misunderstandings and pitfalls, which can be devastating, that usually arise from a failure to treat these documents with the attention they need.
Testimonials
I was a little cautious about lawyers generally, even more so since I was embarking on my very first development. A referral to Gavel & Page Lawyers let me put my previous concerns behind me. Open. Direct. Clear communication. Detailed and productive advice. Competitive fees. Down to earth and contactable. Not sure what else you need.
Constructing a landmark development has its own stresses. It was such a pleasure to know that Gavel & Page Lawyers had thought of everything for us from a legal perspective, allowing us to focus on the construction of the development. They were very easy to deal with and always contactable.They drafted all the off the plan contracts for the sale of the 100 residential units, drafted our subcontracts, negotiated Agreements to Lease and the Leases, were available weekends in attending the project’s launch and competently advised us on all issues along the way including construction issues. They made the sale of the units and leasing the retail/commercial spaces seem as simple as selling a house and their services came at a very competitive price. In short, the quality of their service was next to none.
Gavel & Page Lawyers are now our “go to” firm for any contract or property related transactions. They were referred by a family friend and we were not disappointed. They reviewed all the documents and advised us on all the issues surrounding our purchase of a commercial property, ensuring the transaction ran smoothly and relieving a lot of the stress involved They also reviewed, drafted and settled commercial terms which were fundamental to our business. They explained the terms in a way that helped us understand their implications and significance which was of great benefit. A pleasure to deal with, down-to-earth, reliable, efficient and competent. Great job! Highly recommended!
Are you looking for affordable conveyancing services in Sydney with a great customer experience? Talk to the team of property conveyancers at Gavel and Page, who are also specialists in off-the-plan conveyancing, strata disputes, and building defects. Anything to do with property law, we are the team to have on your side.
Gavel & Page Lawyers is a boutique law firm in Sydney, with a focus on conveyancing, property law, construction law and commercial law. Established in 2010, our team and clientele have grown; and between our team of professional lawyers, we have decades of experience in the areas we practice.
Whether buying or selling residential property, commercial property or industrial property, we handle all conveyancing matters in NSW. If you intend on buying land on which you want to develop in some way, or if a dispute arises during the transaction, we are equipped and qualified to provide you the advice needed.We also regularly deal with conveyancing for off-the-plan purchases, as well as sales on behalf of developers regardless of the size of the development. We also assist in the buying and selling of businesses, as well as advising on and handling commercial, retail or industrial leasing matters.
Our expertise within our areas of focus is extensive and our professional team are some of the best when it comes to handling disputes between neighbours, advising on and assisting in obtaining easements or access to land, advising on, or drafting, reviewing and negotiating various commercial or construction contracts, as well as a range of disputes, including building defect disputes, contract disputes, and an array of construction and commercial disputes.
