Projects - Risk Management

Project North West

Pre-sales risk review


  • Pre-sales risk review
  • 80 lots of which 60 were pre-sold
  • Value of pre-sales – $25m


  • Major Trading Bank was considering funding a project in North West Sydney and requested a pre-sales review
  • Noted significant deficiencies in pre-sales contracts
  • Identified that smaller lots had achieved a higher proportion of pre-sales
  • Established stakeholder deposits were less than pre-sales contract deposits, possibly indicating rebates


  • Recommended pre-sales sample for lawyer to conduct further review.
  • Noted risk to GRs of higher value lots due to smaller lots achieving higher proportion of pre-sales


  • Major Trading Bank complied with our recommendations for the project

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