the only time a loan on any property shows up is when full registration could have been taken out, after due dilligence and anytime untill you have the green contract and full title. This is a fact based on what is happening on a big development in hurghada
I hope this helps.
As with any property deeds of entitlement (or full registration of ownership) loans and mortgages are shown on them. This gives the lenders a charge over it in case of default. Your developer registration documents won't show this.
However, we have often seen development due dilligence change ownership. Sometimes through fresh investment (as in Practical Partnerships) sometimes because of bereavement or lack of development funds. Sometimes through compulsory government methods.
This is often when investing owners meet problems, especially when the developer
Green Documents are not yet handed over. It maybe at the final payment stages that these issues come out and innevitably buyers suffer the stresses and strong pressure to stump up the cash without this proof. Even after signing the final contract and you pay up, the documents take a while to complete and be returned to you duly authorised.
It is a long standing issue, the government can't solve. Or maybe don't want to change it, as I often state "these grey areas are often made to be misused." Off-Plan projects seem to be more suspect.
That's why I advocate buying on Hotel Resort developments, often these are part of Multi-National companies that have good background. Due Dilligence means something here. Private projects are more vulnerable to misrepresentation, mostly built with your cash by inexperienced workers with accountants sometimes not accountable.
Until a body of regulation steps in and independent advisors are given jurisdiction to help, it's still a minefield out there.
Question: If qualified independent surveyors, inspectors and legal advisors were allowed to practice without prejudice, would buyers be confident to hire them?
Alan Cockayne. Coralife-Style Consultants.
