Hello everyone !
We have a quandary I would like to ask your professional opinion.
We have picked a site in a gated community in which to build a villa. We have been pre- approved for a loan from the bank there. However, the will not formally approve the loan until they appraise the villa that is not built yet.
According to our offer to purchase, down payment (30%) is to be placed in escrow with realtors lawyer there. The escrow will remain until the loan is approved ( which formally, it has not been) or not approved which then the money would be sent back to me.
The quandary is- now the realtor and the developer wish for me to allow them the money in escrow with which to build the villa. And what happens if developer goes bankrupt during the build? What happens if bank revises loan requirements and when the villa is built, we no longer qualify? Or, the villa does not appraise out to the asking price of the developer after it is built? Is this the norm in the DR? We would appreciate your thoughts.