Hi Everyone,
Im looking at doing a rezone of some land to industrial as have been approached by a company that is needing to store equipment that wants to purchase industrial land.We have an option over the land for 12m to get it rezoned and developed but only want to proceedif we get some legal reassurance that the company that needs the land will actually come through and do so.
Does any one have any ideas how what the best way to structure this deal to commit the buyer than we are gettting the land rezoned for?
We are thinking to execute a sale contract with the group we are looking to on sell it too on the basis that the sale is only conditional on us achieving the revised zoning/or DA.( i.e. the property sells once you have the zoning)
Cheers
You will also need to obtain personal guarantees from the directors of the company you are onselling to – and make sure they have equity to attack. Are they willing to pay 10% deposit up front?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Just as you would when you are developing a site and getting up your presales, discuss with your solicitor getting an agreement to purchase and sales contract counterpart for the buyer. The one condition to consider is the whole deal falls over if you don't get the DA otherwise it is a solid agreement.
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