I recently attended on of Mark Rolton's one-day presentations during which he outlined some of the strategies he uses to secure properties whilst he is investigating their development potential.
One of those strategies is to insert a clause in the option agreement that allows for the premium, or deposit, to be refundable should he not proceed with exercising his right to buy.
To me, this sounds like a condition that is wildly unfair to the landowner, but given Rolton's success with the property development business, I'm wondering whether the clause only seems unfair because of my lack of experience.
Has anyone seen this refundable deposit clause used?
One of those strategies is to insert a clause in the option agreement that allows for the premium, or deposit, to be refundable should he not proceed with exercising his right to buy.
To me, this sounds like a condition that is wildly unfair to the landowner, but given Rolton's success with the property development business, I'm wondering whether the clause only seems unfair because of my lack of experience.
Has anyone seen this refundable deposit clause used?