Option to Buy - Seller Negatives

Hi All,

I have a large property I have been trying to sell and have just received an offer at a price I am happy to sell at however they have requested a one year option to buy.

I have only just received the e-mail offer from the real estate agent today, but have no understanding of the negatives for me as a seller and haven't spoken to my solicitor yet.

I've never dealt with options to buy, but am trying to assess the risks, so would be grateful if anyone here can shed any light on the risks for me as a seller?

Thanks

Max
 
Buyer can purchase at the nominated price but does not have to.

For the year your life is on hold with no knowledge of whether you have a sale or not.

You charge a non-refundable fee for granting the option. Just make sure it is worth the risks.
Marg.
 
Hi All,

I have a large property I have been trying to sell and have just received an offer at a price I am happy to sell at however they have requested a one year option to buy.

I have only just received the e-mail offer from the real estate agent today, but have no understanding of the negatives for me as a seller and haven't spoken to my solicitor yet.

I've never dealt with options to buy, but am trying to assess the risks, so would be grateful if anyone here can shed any light on the risks for me as a seller?

Thanks

Max
One year is a long time,and depending on how the contract is set the negatives for you can be endless,and the chains of dependence,not something I would do,and I get several letters each month like this from people trying to buy in inner Brisbane and everyone goes in the recycle bin..imho..
 
If it's a large property the buyer probably wants the time to get DAs etc so they can develop the property, perhaps see if it can be rezoned to commercial or higher density housing for example. I suggest you can go and talk to a private town planner to get an idea of what is feasible yourself. Then perhaps, set that ball in motion. Who knows, your land could be worth millions if you do that.
 
Negatives
- prices could rise with you locked in
- they would have a caveatable interest so
- no ability to increase loan (unless they agree)
- they may not buy and you have wasted a year, but you keep the option fee
- If you die then your estate is bound, subject to the contract terms
- tax complexitites perhaps.
 
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