Is there any insurance that covers builder/developer insolvency for buying OTP

Hi, I have a unique situation where I have an option with a builder to sell land for money + unit (as an alternative to money only). At the time of exchange at the end of the contract period I get a deed to a unit, however I have technically given the builder the value of the unit as a free loan until construction is complete! Typically buying OTP involves placing the deposit in a trust and therefore this offers some protection from insolvency of the developer/builder.

I am wondering if there is a type of insurance that I can use that will cover the risk involved with this transaction (such as insolvency, etc).

To give an example to demonstrate what I mean:

Scenario 1: sell land for $1 000 000

Scenario 2: sell land for $800 000 but get a deed to a unit with an expected market value of $400 000 (essentially giving them a free $200 000 loan and accepting the risk on potential +$200 000 profit).
 
Probably not, but you could put a caveat on the land to protect your interest, or have a mortgage contract drawn up and registered on title
 
Probably not, but you could put a caveat on the land to protect your interest, or have a mortgage contract drawn up and registered on title

The caveat sounds good, but obviously undesirable for the developer and hence unlikely. I'll look into that one though.

What do you mean by the mortgage contract drawn up and registered on the title? and does this offer a "pseudo-insurance"?
 
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