Building on Land that is under option

[NewAge Property]

If/when I am fortunate enough to find an owner who allots me an option to develop his/her land, is it kosher to begin building on the land before I exercise the option?
Does Mark Rolton do it this way?

 

[alexlee]

If I was the owner, I wouldn't given you the right in the contract.

You don't exercise the option, I could be left with a hole in the ground.

 

[marg4000]

As you don't own the land, you don't anything built on it.
You would not get finance, and would risk losing what you had invested if the sale did not go through.
Marg

 

[NewAge Property]

You don't exercise the option, I could be left with a hole in the ground.

Yes, that would be more a risk in the early stages of building than it would be after something usable had been constructed.

 

[NewAge Property]

As you don't own the land, you don't anything built on it.
You would not get finance, and would risk losing what you had invested if the sale did not go through.
Marg

Ha ha, ,some very good reasons why the idea is bad. Thanks.

 

[Corey Batt]

With the liability and finance issues for this kind of scenario, it's just not worth going down this pathway.

 

[Scott No Mates]

Use the option period to achieve a DA, set yourself up to develop or onsell the property - not to build. If you miss exercising the option by a day, you have lost it and the vendor has all of the rights to the DA that you have submitted.

 

[NewAge Property]

Thanks People,
much appreciated.