Hi Guys,
As per the topic, this may be a silly question, however… My partner and I are looking to buy a small apartment building on a single title, subdivide and strata it, and offload the apartments individually. Obviously we’d like to outlay as little cash as possible so we would really like to negotiate a long enough settlement to potentially fit the whole process in. My hunch however is that we won’t be able to push through the DA and associated paperwork if the title is still in the vendor’s name? Can we get some opinions on this please?
Also can anyone recommend a solicitor in the Brisbane area that would specialise in this kind of thing?
Thanks,
Alex
Yes it could be done. many legal issues to consider though.
See RPI from this forum, he is a property lawyer based in Brisbane.
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
Hi Alex,
My hunch however is that we won’t be able to push through the DA and associated paperwork if the title is still in the vendor’s name? Can we get some opinions on this please?
I have heard “There are ways” – these might include taking the vendor into the deal as a JV partner.
Or purchase an option from the vendor with a long enough time-frame and including conditions that have him sign as the owner. The situation with an Option is that you would have the right, but NOT the obligation to proceed with it. It may even (I believe) be onsold to another investor ahead of its expiry date.
The vendor gets the benefit of having a DA in place if you DON’T go ahead, thus raising the value of the place for his next sale. So, an option not completing is not that big a deal to the vendor.
Do note that was ALL opinion – just stuff I have HEARD over the years. I haven’t done it personally, but maybe RPI will add more ideas re these to the mix, and guide you through the various choices.
Good luck with it – sounds like it can be a real winner,
Benny
PS Nearly forgot – a big welcome to PI.com too !!
Hi Alex
Out of personal experience: all you need is a special condition in the contract saying that vendor grants you permission to lodge DA before the settlement, and , subsequently, signed consent letter from the vendor to be lodged with council. DA is attached to the property, not the owner.
If you get the option on the property, and subdivision is complete, you may (?) even be able to sell the units individually without settling. Such scenario is opinion only and has to be confirmed with the lawyer/RPIThanks everyone, Massive help!!
Hi Alex
Out of personal experience: all you need is a special condition in the contract saying that vendor grants you permission to lodge DA before the settlement, and , subsequently, signed consent letter from the vendor to be lodged with council. DA is attached to the property, not the owner.
If you get the option on the property, and subdivision is complete, you may (?) even be able to sell the units individually without settling. Such scenario is opinion only and has to be confirmed with the lawyer/RPII have seen DA’s lodged prior to settlement before, either by written approval giving you authority to sign or alternatively a clause agreeing for the vendor to actually sign the DA papers – meaning you fill in all the forms and hand to them to sign as if it was their request, then it goes to council (both can work)
My issue is if you plan on selling them all before it even settles, for profit, why would the owner want to sell under those conditions?
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
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