Hi,
My name is Scott and I am currently in the process of putting my first LO deal together. I have purchased property in Adelaide and last week spoke to a solicitor about getting a contract and the details of it. He advised me that writing rent credits into the contract as reducing the exercise price was not legal in SA and could potentially void the contract. He suggested to factor the rent credits into the exercise price. Just curious if anyone has any advice/thoughts on this issue. My initial thought was to have a 5 year lease but to credit 5 years rent credits and be exercised in 2 years would downgrade my profits. I had a thought of 2 year lease with option of further 2 year leases and lower the purchase with each subsequent 2 year option. I haven't run this idea past my solicitor yet meet with him tuesday would like to present some different options.
Thanks
Scott
My name is Scott and I am currently in the process of putting my first LO deal together. I have purchased property in Adelaide and last week spoke to a solicitor about getting a contract and the details of it. He advised me that writing rent credits into the contract as reducing the exercise price was not legal in SA and could potentially void the contract. He suggested to factor the rent credits into the exercise price. Just curious if anyone has any advice/thoughts on this issue. My initial thought was to have a 5 year lease but to credit 5 years rent credits and be exercised in 2 years would downgrade my profits. I had a thought of 2 year lease with option of further 2 year leases and lower the purchase with each subsequent 2 year option. I haven't run this idea past my solicitor yet meet with him tuesday would like to present some different options.
Thanks
Scott
