Can one sell the land before settling on it?

Hi Guys,

Just wanted to clarify this point, if one exchanges contract on a land and has not settled yet on it, can he sell the land?

I was hearing mixed views as my understanding was once you are the owner of the land (become one after you have settled on it) then you can sell (provided there is no binding contract to build on that land).

Feel free to share your thoughts...

Thanks !!
 
Yes you can sell the land.

Hi Terry ... would you be able to elaborate a bit more. How can you sell when only you have paid 5% or 10% of the total land value a the time of exchange? And why would the new purchase buy it when he knows the seller is not even the owner of the land?

Please demystify if you can .....thx.
 
All settle at the same time.

End buyer would know you are not the owner, but not know the price you are paying. They would only buy it if it is a good deal, or if they are in love with the property etc.

I had a client who bought a property off the plan recently off someone who signed with the developer and then couldn't settle.
 
Hi Terry ... would you be able to elaborate a bit more. How can you sell when only you have paid 5% or 10% of the total land value a the time of exchange? And why would the new purchase buy it when he knows the seller is not even the owner of the land?
My brother in law bought a block of land and sold it again before settlement. The land took longer to go to title than expected, I think about 10 months. So he just put it on the market and sold it for a profit. There is no need to disclose that you are not the owner if you have a contract to buy the land.
 
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