Selling strata block to developer

Morning gents and dams

Council has re-zoned a block of land where I own a unit. There are 8 of us in the complex and there is potential for a developer to put 35 units.

Anyways, all owners are in agreement to sell, however, is there some kind of agreement that all 8 owners can sign that binds them to selling. Obviously there will be an agreed minimum price/timing etc....

Reason being, we don't want one single greedy owner to pull out the day before auction or requesting more money after we have all agreed on set prices.

Just trying to make it an easy and smooth process and cover all bases.
 
As it's a commercial block, it may pay to have each owner engage a valuer or if agreeable 2 valuers for the lot and then use their numbers (& % of total value) as the basis of each owner's interest. Have it all documented with each owner signing the agreement rather than having individual parties negotiating 8 different outcomes.
 
Why not make up a memorandum of understanding which sets out some basic intent for all owners. Ultimately you may get screwed but if all agree to the basic terms and go forward with the same understanding you are less likely to get surprises later on.

The MOU obviously isnt binding but is a step in the right direction. Being 'less legal' owners may be willing to sign up without getting their own timely legal advice.
 
We are sort of on the same page about how money will be split (unit entitlement) and the nuts and bolts.

There was talk of a creating a memorandum of understand but I am looking for something more concrete.

We have once chance at this, if it falls through I fear that a lot of the owners will just give up and will require more money to convince them to sell.
 
Have you obtained GST advice. You don't want to be construed as forming a joint venture to make a taxable supply do you ?
 
Morning gents and dams

Council has re-zoned a block of land where I own a unit. There are 8 of us in the complex and there is potential for a developer to put 35 units.

Anyways, all owners are in agreement to sell, however, is there some kind of agreement that all 8 owners can sign that binds them to selling. Obviously there will be an agreed minimum price/timing etc....

Reason being, we don't want one single greedy owner to pull out the day before auction or requesting more money after we have all agreed on set prices.

Just trying to make it an easy and smooth process and cover all bases.

Give Terry a call, make an appointment to see him and work out the legalities.

Also, give paul a call, make an appointment to see him and work out tax implications.

First, get the owners to agree to put a nominal sum up to obtain this advice.

From the initial meeting Terry should be able to tell you how much a formal document will cost to put together to cover what you're looking for, then if the owners agree go ahead and get that done.

Ultimately with group decisions like this it's probably best to outsource everything to independent people so that the other owners don't feel anything untoward is happening.

I'd also suggest budgeting to get valuation done so you can work out reserve price etc.
 
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