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Q: What happens if you buy an apartment before completion and the building company fails.
I have friends who have either purchased a property before completion or been offered and accepted a new but yet unbuilt property as part of a relocation. I asked them a question about what would happen if the company who they have already paid the FULL price to goes bust (bankrupt) they just say as does the sales person when asked that this does not happen. In Australia if you buy of the plan (before completion) you onloy pay 10% deposit and sign a contract to pay the rest on completion. Even the 10% goes into a trust that is only accessed by the builder once you have your apartment or if you fail to pay on completion you forfeit the deposit. This practice in China seems really dodgy to me but no one seems to worry that they will loose their money.
Has anyone lost their money like this or what is the guarantee that it wont happen.
first of all it does happen!!! but the 2 cases i'm familiar with the owners ran off with the money. i dont know what happened to people who bought the homes. 1 case another company came in to finish the job but i dont know the details
