Option to Puchase

[astroboy]

I was wondering how to go about placing an option to purhase on a property. I would like the chance to purchase the properties either side of an existing IP of mine, I know the current owners are in no hurry to sell though.
As it is a long way from where I live at the moment, there is a chance that either of them may come onto the market without my knowledge.
I love to hear from anyone how has done this and successfully excercised that option. Thanks.
astroboy

 

[Denkel]

Astro Boy

I'm in the same boat. Both properties either side would more than treble the value, versatility and potential of our ip.

I would not have thought that any more than just talking to the relevant property owners was possible though.

It has put us in the sometimes uncomfortable position of "brown nosing" to stay in their good books and not ruin our chances. If there is any other means I too would love to hear of it.

Kel

 

[MarkB]

I suppose it also depends on what it is you are asking for:

1. A right of first refusal

That is the opportunity to be given first bite at the cherry on a take it or leave it basis. That is, they say "we want to sell the property for $X" and you get first option at that price.

If you do this you may pay a premium - ie. full price!


2. A right to match any formal offer they recieve.

This is last bite at the cherry at whatever the going rate is - though you may have to sweeten the deal with a few extra $, else they have nothing to gain by selling to you.


Either way, unless you actually get them to sign a contract (with appropriate consideration to give it legal force), then really you are just relying on someone's honour and their self-interest.

As I see it, even a formal contract has problems:

***And I should say that I am not a lawyer***

1. You could never force them to sell the property within a given time period

2. the contract may not be recognised by the courts if challenged

3. Depending on the wording of the contract, changes in circumstances could render it null and void - eg. what if your next door neighbour dies and his/her next of kin then get the property - the person you have a contract with is pushing up daises.

4. It may be superseeded by other legal documents, such as a Mortgagee's rights to the property, etc.

MB