Options

[WebBoard]

From: Brett Watson


I am in the process of negotiating for a large parcel of land (in Victoria) and after long discussions with the owners agent they will accept an option on the land. I have never bought a piece of land this way but due to my current circumstances it fits in perfectly with my plans.
Has anyone put an option on some property before, and if so where did you get the option contract?
What are the benefits/pitfalls?

 

[NigelW]

Reply: 1
From: Nigel W


On 7/5/02 11:09:00 AM, Brett Watson wrote:
>I am in the process of
>negotiating for a large parcel
>of land (in Victoria) and
>after long discussions with
>the owners agent they will
>accept an option on the land.
>I have never bought a piece of
>land this way but due to my
>current circumstances it fits
>in perfectly with my plans.
>Has anyone put an option on
>some property before, and if
>so where did you get the
>option contract?
>What are the
>benefits/pitfalls?

see your solicitor. this is probably going to be a substantial investment for you if you intend to exercise the option. spend a few bucks now to get it right. You should also investigate getting a consent caveat or perhaps a 2nd mortgage over the property to prevent them dealing with the property adversely to your interest during the option period. the form of contract to be entered into should be annexed.

Also, to avoid paying double stamp duty or more you should be considering whether to purchase via an entity that will suit your ultimate plans for the property...

talk these things over with your accountant and lawyer.

Begin with the end in mind.


good luck.
N