contract fell development land

S

shazza123

we have 2 development properties;
1. Murrumba Downs brisbane qld australia.
land size 8094sqm zoned Res A. council minutes have been done stating they would like townhouses minimum of 40 townhouses. Highschool directly across rd. opening this year. within 400 m to new train station when completed in 3 years. council will allow 3 stories. 30 minutes city 30 minutes coast. 2min hway and major shoppingcentre Northlakes. flood free flat land, 2 road entrances.
2. brisbane qld australia.
land size 8449sqm zoned Res A. Moreton bay council are in the process of new urban area. high density 200m from the trainstation.this block will take a few years.
property 1. we were in negotiations since june 2010 to sell the property for $1.85m , we had a call option signed we were supposed to get $600 000 dec 23rd deposit then $600 000 when DA was approved the $650 000 on settlement, around 21 months.
The company progreen properties after the 80days due diligence have said Massland is now taking this call option, but will not pay initial deposit instead $5000 per month until DA approved and only $1.5m on settlement.
We have a mortgage $540 000 with anz payments of $3400 per month
We also have a $93 000 loan with homesec was due to be paid on the 8th Jan. interest is $5500 per month until paid.
We also have $130 000 in personal loans/credit cards.
We have not had any cash flow through our business as we thought we would have been receiving deposit in December.
If we try to refinance combine all $770 000. using The contract we receive from mass land as cash flow to pay the loan. if we do accept this contract we will be loosing $350 000.
I know we could get more for our property as i had many offers before i accepted the one from ##### any advise would be greatly appreciated
Sharon
 
Last edited by a moderator:
What did the option say and where is your lawyer in this?

If they arent meeting the terms of the option, then cancel it and sell a new option to someone else, or sell the property outright.

If they are investing money in getting approvals, by cancelling the option, the power is back with you and you can negotiate your own terms if they wish to proceed. Don't let them push you around.

Also be aware that an option is just that, don't count on them exercising it to dig you out of a hole.
 
As Matt said what is your solicitor doing?
The original company has assigned the option to another company not much you can do about that. The new company has to abide by the option agreement or all bets are off unless you have already accepted these new terms.

They have breached fundamental parts of the agreement ie consideration due in December. Was this conditional on the DA?
 
No doubt the option holder would have placed caveats on title so this would mean no refinancing would be possible (without their permission).

Also sounds like you are doing this without a lawyer. I suggest you get one asap.
 
i have had a solictor the whole way through, i had a letter of offer first signed. Then a call option signed, all with my solictor. Then 1 week before due dilegence was up. they called a meeting and massland roughly wrote up a heads of agreement and said this offer only last 24hours.
i am so confused on what to do, and who to trust. is there a way to sell a section of property 1. to investor @ $250 000. sixth of the property. which in the planning would fit 7 townhouses on it.
to be able to be loan sharks etc. to give me time to find a developer.
last week i was offered $300 000 in 30 days and $1m on DA (in the planning it says will take 6-8months)
Please advise !!! help!!!!
 
I am a bit confused.

The option buyer has the right but not the obligation to buy - usually. Is this how your agreement was drawn up?

If so then Massland may not even buy the property from you. You could sell all or part to someone else, but the option remains on the property and the new purchaser would have to honor it, so it may be very hard to sell. It may also be very hard to finance because of the option and/or caveat if there is one.
 
Sharon,

But posting the address of the property and your mobile etc you are showing too much personal information and the option buyer could see this post and your panic and then use it against you.
 
Sharon - have removed details - as Terry said, you really don't want your details out there, if only for the fact you might get some strange caller at random hours.

The Y-man
 
no offence, but options and joe average dont mix. see carly crutchfield.

the option would probably cover the entire, original title of land.

you had an agreement of 3 instalments now they only want to cover your expenses?

that's your out - breach of contract .....you DID get that in writing, didn't you.....?
 
The Y-man said:
Sharon - have removed details - as Terry said, you really don't want your details out there, if only for the fact you might get some strange caller at random hours.

The Y-man
Click to expand...

This is a double post. May want to do the same for the other post, too.
 
sorry aaron. i really dont know how to use this sight correctly. there were so many clauses in the offer/options. thats why i had a solicitor do it all. :(
 
Sharon,

It seems like you are relying on the option holder to purchase, but they may not. It seems they could walk away from the deal.

It also seems they haven't kept to the terms of the agreement. What has your lawyer said about this?
 
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