Other forces have also come together to put pressure on the targeted restrictions, including the revision and regulation by the European Union in the 2000s, the increase in non-targeted sales from the United States (if approved), Japan`s desire to create an LNG exchange centre, and the general LNG “buyer market” that has been going on for some time. If the seller requests an “intermediate deposit” in the sales contract, the buyer pays the intermediate deposit to the seller until the due date specified in the contract. The seller issues a receipt to the buyer. The amount paid as an intermediate deposit applies to the total selling price. Financial institutions typically need 2 to 3 weeks to process a credit application. After approval, you must sign a loan agreement to fulfill the conditions. Background: LNG sales contracts traditionally restrict the ability of the liquefied natural gas buyer to freely resell cargoes acquired under the contract. This helps LNG suppliers manage their markets and business processes, while limiting the ability of LNG buyers to optimize their supply agreements over time. As Japan enters a phase of excessive LNG surpluses, these restrictions are increasingly being examined by both buyers and the Japanese government. If you intend to use a loan to purchase a property, you must apply to an appropriate financial institution shortly after the signing of the sale agreement. For each financial institution you apply to, you must complete, sign, seal and submit a loan application form.
If a potential buyer is required to terminate the contract because of his inability to obtain a residential loan, he must notify his representative, who informs the seller. Should this happen, the sales contract provides that the total down payment paid to the seller and half of the commission paid to the broker will be refunded to the buyer. Looking ahead: Future LNG sales contracts in Japan with FOB supply conditions will likely need to be avoided. If the contract is renewed, this may require a change in the existing contractual terms. With respect to existing contracts, caution must be exercised in the exercise of existing rights and some provisions may even need to be renegotiated. The analysis differs between source-of-supply sales (fob sales) and sales with a point of delivery in Japan (ex-ship sales), with restrictions on FOB sales being more difficult to justify.