How is the remaining balance on a resale unit paid?

What does the remaining balance on a resale unit mean?

A resale unit carries two sums, not one. The first is what is still owed to the developer under the original buyer's contract, the unpaid part of the unit's price. The second is what the exiting buyer takes for giving up their place, the money they have already paid to the developer plus the premium the two of you agree on top. The catalogue lists resale units in exactly that shape: the cash the seller asks for now, and the balance that stays owed to the developer.

Which part do I pay to the developer?

The developer's contract and schedule stay as they are. The new buyer steps into the first buyer's payment plan, with the same instalment dates, the same amounts and the same remaining years. A resale does not come with a fresh plan: the catalogue today shows new developer sales on down payments of 5% and 10% of the price and plans running 8 and 10 years, while a resale inherits whatever remains of the original one. Those instalments are paid to the developer, under the contract, exactly as before.

Which part do I pay to the seller?

The seller's part is the private side of the deal: what they had already paid, and the premium agreed for the contract position. The two of you settle it directly, and the assignment agreement is where its amount, its due date and how it is paid are written, so that each side knows what is exchanged at the moment the developer records the change of buyer.

Can the seller's part be paid in instalments?

That is a matter for the two of you to agree and to write into the assignment agreement; it is not part of the developer's plan, which covers only what remains owed to the developer. Agree it in writing before the transfer is booked, and confirm with the developer's sales office what has to be paid and up to date for the consent to be given.

Does the developer have to approve the new arrangement?

Yes. The contract is with the developer, and the change of buyer is recorded in their books before the unit moves. The assignment clause states what the developer asks for that consent: that the account is up to date, the documents the new buyer must produce, and the developer's own charge for the transfer. Read that clause before you commit to anything with the seller.

What should I check before paying the seller?

Ask the developer's sales office for the account statement and the amount still owed in writing, not from the seller's own sheet. What you pay the seller and what you continue to pay the developer must add up to the price you agreed, and nothing should be paid twice. Check the delivery date on the contract as well, because the schedule you are stepping into carries it.

What happens if the transfer does not go through?

Whether a payment to the seller is returned, and what follows a withheld consent, are read in the assignment agreement and the contract: the document states the conditions attached to the sums it covers. Have that in writing before you pay.