Say a developer in QLD goes belly up. Does anyone know how to purchase their land stock? Do I contact the liquidators to express my interest in purchasing their development sites? Where would I stand in the line to purchase the site, ie: would I be first in line to make an offer or do I have to wait for creditors, banks, shareholders, etc to first make offers on the land? How can I jump to the front of the que?
How to purchase insolvent developer sites (QLD)
- Thread starter eggnog
- Start date
The land will usually be secured by a first mortgage and often a second (or more). Therefore the mortgagee would be the one to take possession and not the liquidator. You could then negotiate with the mortgagee to buy the property. Any money over and above the debt owed to them would then go to the liquidator so they could charge $5 per tim tam at company meetings and then paid out to creditors if anything is left - other secured creditors first and then non secured.
Nothing to do with liquidators generally. They may know, but if you know the address you could probably do a title search and find the mortgageee on title. You can then contact their legal department - but not sure how successful you would be. Don't forget they have a duty to get to best price they can which is usually done via auction or maybe tender for the bigger projects.
great. Thanks for the tip Terry. Will do a titles search.
Can I ask why they have a duty of care to get the best price? They would only have a finite amount of debt on the property so wouldnt they only be interested in getting their monies back? Then how come I here of stories about people purchasing assets at fractions of their value from liquidator sales?
Can I ask why they have a duty of care to get the best price? They would only have a finite amount of debt on the property so wouldnt they only be interested in getting their monies back? Then how come I here of stories about people purchasing assets at fractions of their value from liquidator sales?
