Question on Discount side letter

[urban]

Hi everyone,

Can I check with you guys?

I have a developer side letter offering me a small discount which they will give me back a small amount (1%) upon TOP? I will have to pay them in the mean time this discount, which they will pay me back upon TOP.

Of course the bank will not loan me the full S&P price, but will be giving me a long based on S&P price less side letter discount.

I have already paid in cash the 20% downpayment on the full S&P price (including the discount).

My question is:

Is it correct that the bank is saying that I have to pay the remaining 80% of the discount, even though the progress payment being called now is only for the 1st 10%?

I find the logic strange that the bank says so. But apparently that is what lawyers have advised the bank to collect from me before disbursement the 1st 10% of loan.

Thanks for any advice.

[shauntanzs]

alamak, u should not declare the discount mah. Like dat u still can loan 80%. Thats what my lawyer told me.

[mcmlxxvi]

Bank LO states clearly any discount by developer must be declared.

[shauntanzs]

Yup... When I told my banker about the discount and my lawyer advise, he just wrote "No discount given" hehe

[urban]

It is a MAS law that borrowers have to declare.
False declaration may be subject to penalties.

Anyway i thought it is strange that the discount is treated as 'COV' and i have to pay all at one go, instead of the progressive payment which follows the 'construction progress'.