House and Land Option

[Mark C]

Looking for the holes.

If I was to put an option on a block of land and then proceed to get approvals to build a house on the land.

Could I sell the option to another buyer, then lock the buyer into exercising the option and using me as the builder on the approved building construction?

Of cause there would be profit on the option and usual profit on the construction.

A kind of house and land package without having to own the land myself.

Mark C

 

[Xenia]

Very creative, you could do anything if you find a taker. You would need a combination Put and Call option to obligate them to exercise with a clause stating that any building work would be done by you. A solicitor could draw this up but make sure they have experience in the area.

 

[Mark C]

Xenia,

I've done a bit more checking and it seems pretty straight forward. I will price the property as if I am going to exercise the option then sell the land/house package. But then offer the discount if the buyer is happy to put up with the extra paper work as first planned.

I have a short list of very appealing water front properties that I will be putting offers (by way of an option) on over the next couple of weeks.

As soon as I have one I'll put the plan into action.

Worst case 12 months expires and I can't sell the land/house, it's only a small amount of cash I've lost or I may buy the land myself at that point.

Mark C

 

[just do it]

actual case

i am doing one at the moment where i have a put and call option to buy ablock of land then a 6 month settlement when I take up the option. I will have the DA for dual occ done by the time I pay for the land so can build from day 1