A construction loan contract is a written document which is made and drafted between a construction party or owner of the property which is to be constructed and a bank or financial institute providing loan to the owner. Such contracts are legally binding for the involved parties and consist of all the major points and details of the agreement.
Sample Construction Loan Contract:
This contract has been made effective on the date: 3rd May 2011
This contract has been made by and between Mr. Daniel Lawson who is the OWNER of the property and Mr. Robert Mark who is the bank officer of the LA Bank limited
The details of the parties are given as follows:
Address: 1-H, First floor, Potter’s enclave, LA
Contact number: 477940934840
Address: q-8, second floor, Harvard square, LA
Contact number: 482083024044
Details of party to be constructed:
Address: s-89, second floor, Partway building, LA
A loan of $20000 is to be given to the OWNER by the bank which shall be handed over at the beginning of the contract and must be paid back any time before termination date.
Termination date: 3rd May 2012
Terms and conditions:
- The OWNER must pay back the loan within time to avoid late fee charges.
- The Loan amount must only be used for construction purposes and if found to use the amount for other purposes, the party will be heavily fined.
- The BANK must present all the details to the OWNER so as to avoid any confusion in the future.
Validation of the parties: