EXTRA GUARANTEE MECHANISM

How is your investment secured?

  • Money from the loan is paid directly to the development company, so there is no risk that the buyer would use it for different purpose. At the same time, the condition for the payout of Cash-Free Housing loan is the payment of a reservation fee in the amount of 5 thousand EUR
  • The loan applicant has the option to insure the loan repayment. In case of an incident, which would affect the repayment and is covered by the insurance, the insurance company will cover the repayment
  • According to preliminary purchase contract, the developer shall not transfer the ownership of the apartment/parking space, cubbyhole/ to the buyer until the buyer repays his liabilities to investors and Žltý melon
  • In case the buyer stops to repay the installments, or fails to repay the loan at maturity date, the preliminary purchase contract will be cancelled and the reservation fee will forfeit
  • The whole principal is secured by the development company buyback guarantee. In case the buyer stops to repay the loan, the guarantee mechanism will be initiated

 

What is a buyback extra guarantee mechanism?

  • The development company guarantees the repayment of the whole principal to the investors at the time of selling the debtor's flat to a new buyer. New sale price has no influence on the pricipal repayment obligation
  • From the moment of cancelling the preliminary purchase contract has the development company 3 months time exlusive right to sell the flat. Afterwards could any investor, investing into this loan, buy this flat at same conditions as the original buyer
  • In case that the flat won't be sold within 12 months, development company has the obligation to repay the whole loan principal regardless the flat is sold or not sold
  • In case of CashFree Parking loan, development company guarantees repayment of the whole principal, in most cases also due interest and fees
  • Due interest and fees, will be collected from the debtor. If not successful, the debtor will be sued on court. Full collection process is ensured and financed by Žltý melón