Explanation of Registering a Charge for Deposits in a Townhouse Scheme
As a registered Developer embarking on a townhouse scheme comprising 12 or more units, it’s essential to understand the process of registering a charge when utilizing deposits received from buyers. This ensures compliance with regulatory requirements and safeguards the interests of purchasers and stakeholders involved in the project. Let’s break down the steps involved:
1. Purpose of Registering a Charge:
If you intend to use deposits received under contracts as part of the financing for your scheme, you must register a charge in favor of the Real Estate Board on the Registered Title to the lands subject to the scheme.
This charge acts as a form of security, similar to a mortgage, and is registered at the Registrar of Titles office. It covers all monies received under contract agreements with purchasers.
2. Process of Registering the Charge:
You’ll need to visit the Registrar of Titles office to register the charge. This…
