Hi there,
I'm interested in gathering a group of investors together to approach a developer who is selling units in a recently completed building and using the bulk discount approach to negotiate a cheaper price for each of us. If I gather say 5 people (whom I do not know) together by lurking around at open for inspections and then approaching them afterwards and go to the developer and say, "I'm interested in 5 of your units and want to negotiate a 25% discount off the advertised price". The developer may benefit by flogging off stale stock (the units, particularly penthouse and waterfront ones have been hanging around on the market for ages) and all 5 of us then benefit with a cheaper price. A couple of questions:
1. Is it possible to do this type of thing without setting up a consortium/company of all 5 of us? I'm interested in not having any legal obligations, responsibilities etc. between us as a group but just want to be the broker in the deal (a representative only) - everyone then would have individual contracts drawn up with the vendor independent of me and independent of everyone else.
2. If the developer agrees should I get it in writing?
3. If 1 of the group defaults at the last minute are there any legal obligations on me? ie since I negotiated a deal that the developer agreed with (verbally or otherwise) and then failed to come through on my part (even though I could not guarantee 100% that everyone will pay up at the end) could it be legally argued that I failed and am therefore liable?
4. Is this sort of thing common or do people avoid doing it because it can appear to be complex?
Any advice from people who haveexperience would be appreciated,
Thanks.
I'm interested in gathering a group of investors together to approach a developer who is selling units in a recently completed building and using the bulk discount approach to negotiate a cheaper price for each of us. If I gather say 5 people (whom I do not know) together by lurking around at open for inspections and then approaching them afterwards and go to the developer and say, "I'm interested in 5 of your units and want to negotiate a 25% discount off the advertised price". The developer may benefit by flogging off stale stock (the units, particularly penthouse and waterfront ones have been hanging around on the market for ages) and all 5 of us then benefit with a cheaper price. A couple of questions:
1. Is it possible to do this type of thing without setting up a consortium/company of all 5 of us? I'm interested in not having any legal obligations, responsibilities etc. between us as a group but just want to be the broker in the deal (a representative only) - everyone then would have individual contracts drawn up with the vendor independent of me and independent of everyone else.
2. If the developer agrees should I get it in writing?
3. If 1 of the group defaults at the last minute are there any legal obligations on me? ie since I negotiated a deal that the developer agreed with (verbally or otherwise) and then failed to come through on my part (even though I could not guarantee 100% that everyone will pay up at the end) could it be legally argued that I failed and am therefore liable?
4. Is this sort of thing common or do people avoid doing it because it can appear to be complex?
Any advice from people who haveexperience would be appreciated,
Thanks.
