LoFO - Application For vs Granted

Just been looking at my contract for our Off-Plan purchase which is scheduled to complete early 2009.

One stipulation is that the remainder of the costs for the property (ie the 80% balance) will be required when the dwelling is completed and the Sale/Purchase made a public instrument by subrogation of the Vendors mortgage loan, for a sum which is about 63% "which must take place from the application for the licence of first occupation". The vendor will supply works electricity & water until the LoFO is granted, after which the buyer (me !) will pay the interest of the mortgage loan. Also the difference between the remainder and the amount of the mortgage (ie, the other 17%) will be paid by me.

Now, to me that sounds like I have to pay the bulk of the money (ie the 63%) when the vendor applies for LoFO, not when it is granted. Is this correct and normal ?

Confused of Lancashire

Thanks for that Maria, excellent advice as always.

Kind Regards

Thanks both of you....

writing to my Lawyer tonight.....

about this and a number of other things........

Regards