option to purchase

Viewing 5 posts - 1 through 5 (of 5 total)

danhob
Member
@danhob
Join Date: 2005
Post Count: 11
October 20, 2006 - 1:15 pm
I intennd to purchase now 4 units in a stratatitled block of 8. I stress the one owner at present.
Financially it is viable with solid cashflow
I am unsure how te option over the 4 units would work ie is there a legal guide or standard. i would not live there.
Grateful for any adv ice
Regards
Dan
danhob
Member
@danhob
Join Date: 2005
Post Count: 11
October 21, 2006 - 1:35 pm
to clarify the post-
Block comprises 8 2b/r strataed units which are conrolled by one owner.
He wants to sell all but i propose to buy 4 now and hold and option to buy 4 later at a specified price later in say 12 months- to ease financial cost or spread it.
My query i s how would you word the option- i dont intend to assign it but like to allow time to asssess eg how the block runs, tenants inherited. plus could get purchased units revalued.
Also can a Body Corporate of 2 exist ie is it a quorum, what if we dont agree etc
Sorry for being unclear in previous post.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
October 22, 2006 - 5:15 am
You would need a solicitor to draft the option agreement – if you did it yourself, it could be worthless and you may lose the properties.
Terryw
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Xenia
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@xenia
Join Date: 2002
Post Count: 1,231
October 22, 2006 - 12:51 pm
Typicllay, you would negotiate the terms of the option ie strike price, time frame and option consideration payable. It needs to be favourable to purchaser and seller. Then as Terry said, it is best drawn up by a solicitor.
Once terms are negotiated, drafting up the actual option contract should be easy to do [biggrin]
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manofaction
Member
@manofaction
Join Date: 2003
Post Count: 80
October 25, 2006 - 10:40 pm
Quick tip:
When you speak with your Solicitor, don’t do it like most people and ask them to work within their templates.
Rather, tell them what you are wanting to do and your desired outcome, then ask them to draft a doc to that specification.
As they do this, they should come back to you with some “what if” questions so they can cover them in the doc.
The result is you will work “outside the box” rather than in it.
enjoy
JB
John Blackburn
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