Various legal issues can arise in relation to the funding of development projects. The development of land involves compliance with very specific legal requirements which can be imposed through statutory provisions, common law obligation, council rules, regulations, ordinances as well as industry standards and policies. Obtaining finance in relation to the development of land, whether this development is in relation to a commercial project or a residential project, may be contingent on compliance to these requirements and standards. Likewise, insurance policies that may be taken out will require compliance with their requirements else the liability may be disclaimed under an exclusion clause.
It is therefore prudent to seek legal advice from a construction and development finance solicitor when a developer is considering an application for finance for the purpose of embarking on a land development project. The construction and development finance lawyer will be able to assess the particulars of the proposed development project and ascertain what legal framework the property developer will be operating within. All legal liabilities can then be determined and these can be noted when compliance assessment becomes necessary for the application for finance as well as any insurance policy requirements. The issues that will be noted in the construction and development finance legal advice will include:
- The rights of the financier (lender);
- The rights of the property developer (borrower);
- The obligations of the lender (finance provider);
- The rights of the property developer (borrower);
- Special conditions and terms affecting the rights and obligations vis-a-vis the lender and the borrower; and
- Issues pertaining to the drafting the development agreements so that they are not inconsistent with the loan agreement.
Litigation in construction and development finance disputes can arise where there is an allegation of breach of some duty on part of the finance provider. In these situations, a negotiated settlement will likely be the most cost efficient, however sometimes this is not possible in the face of a stubborn opposing party who is unwilling to discuss the dispute and reach a resolution outside of court proceedings. In circumstances such as these, a party may find that preparing a case for court is the only way to secure their rights. Legal advice will have to be obtained from a construction and development finance litigator who can compile all necessary evidence and draft any Statement of Claim or Summons against the other party. Where the properly developer is being sued, the construction and development finance lawyer will be able to consider any defences and cross-claims available.
If you would like to discuss your situation further with one of our Sydney Contruction and Development Finance Lawyers, contact our firm by telephone on (02) 9233 4048 or send an email to info@navado.com.au.
This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.
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