Declaration of Property Developer 

An undertaking by a construction firm to the financing bank, to enter the charges (on the constructed property) in the land register in the same ranking order as agreed upon at the time of loan disbursement. The scenario for declaration of property developer is very similar to that of a notary declaration.

If the construction firm does not make the land register entries as agreed upon in the certificate, it is obliged to return the loan or even furnish a bank guarantee for the credit already disbursed.

 

In the standard system, you must enter the following details for special arrangements of type declaration of property developer:

·        Identification and type of the special arrangement

·        Status

·        Date of signing the agreement

·        Date on which the business partner signed the contract

·        Date until which the certificate is valid

·        Date when the special arrangement must be monitored for fulfillment of the obligation

·        Purchase agreement identification and date

·        Details of the bank account of the property developer such as bank identification, account number and reimbursement amount for the purchase amount paid

·        Business partner in partner function Notary, Borrower and Collateral taker.

 

Example scenario:

Figure1: scenario for declaration of property developer

In the illustrated figure, a bank provides credit to a construction firm for the construction of new real estate. For the disbursal of the credit, the construction firm is required to sign a commitment that it would register charges for the new real estate property, in the ranking order agreed upon with the financing bank.

 

Figure2: If a declaration of property developer is available, the respective internal lien has be set to statuses legally active and calculation relevant.