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Is there any developer who missed the TOP date in recent years?
MortgageGuru
28-12-15, 17:25
Expecting Sant Ritz to miss TOP.
Is there any developer who missed the TOP date in recent years?
Expecting Laurel Tree to miss the date.
Familiar with the calculation of the liquidated damages the developer has to pay for missing the TOP date? The liquidated damage calculated on daily basis based on 10% per annum of the total sum paid by the purchaser.
For example, the contract price is $1.5m and I had paid 20% cash ($300k cash) and 40% ($600k loan) by loan and the developer missed the TOP date, total $900k paid by purchaser. Balance loan (40%) for TOP and CSC undrawn yet.
1) Does that mean the developer has to pay liquidated damages 10%/365 days x 900k = $246.57 per day to the purchaser?
2) Does this full liquidated damage of $246.57 per day goes to the purchaser or the amount has to be split between the purchaser and the bank on a pro-rata basis (since $600k is the loan drawn)?
3) Is there a risk of the loan being terminated by the bank since the TOP date is missed?
Many thanks for your advice.
propertycarrots
29-12-15, 15:18
Hi,
Full liquidated damage goes to the purchaser and unlikely the loan will be terminated by the bank
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