What does down payment installment mean?

The so-called down payment installment actually means that the home buyer and the developer sign an agreement. The developer pays the down payment first, and the buyer pays it on time without charging any interest. The buyer can apply for a loan and transfer property rights. This method seems feasible, but in fact, there are certain restrictions on the down payment ratio. Therefore, house buyers must act within their ability.

Down payment installment means that the home buyer pays a part of the down payment in a certain proportion within a certain period of time, signs a loan contract, and then repays the remaining down payment within a certain period of time. . For the first installment of a loan prepaid by the developer, the consumer only needs to sign an agreement with the developer to agree on the installment payment period and corresponding liability for breach of contract. Even if the developer pays the down payment on his behalf, the bank loan cannot be transferred to the developer's account until the home buyer pays the deposit and then signs the "Loan Contract".

Down payment installments are also risky. For home buyers, they cannot sign a house purchase contract before paying the down payment, let alone apply for a property ownership certificate. Once the developer mortgages the house , but cannot repay the loan, then the house will be repossessed. "Instalment down payment" is a violation of the central bank's legal provisions on personal housing loans.

Whether it is buying a house for fractions or by installments, it is illegal. Therefore, this behavior is not protected by the law. If there is a conflict between the two parties, the home buyer is likely to not be able to get the down payment, or even Will be prosecuted. You have to understand that pie in the sky will not fall. The so-called installment payment and zero down payment are just to give home buyers more time to repay the mortgage. Once you buy a house, you may be sued. court.

Most of the projects with zero down payment and installment payment are caused by the buyer signing a false contract with the developer and then defrauding the bank to get more money. Once discovered, not only will the buyer be rejected Outside the door, it will also have a serious impact on your credit.

If the buyer and seller use forged contracts to apply for a loan from the bank, once the mortgage loan is approved, the bank will suffer huge losses, and both the developer and the buyer will be punished by law. Penalties will be imposed according to the amount of fraud.