Thanks very Much for your reply Terry.

Yes my intention is to lock in the developer and not give them all the control with a call only option (esepcially for a 24 month period).

I haven’t’ seen a Call Option contract’s T&C’s but I’d imagine it will include a clause that a sale will only go ahead under certain circumstances eventuate (i.e a rezoning and FSR ratio of at least 3:1) Anything less than FSR 3:1, the “trigger event” for the option has not occurred and the option will lapse – Im hoping?)

With the current offer we have on the table whereby we receive a small option fee of $30k in exchange for a call option and the developer has the right to buy our property at FSR 3:.1, within a 24 month period, is not attractive to us, as we lose control for 24 months and we are only compensated for $30k.

The key risk for me is (again I need to see the T&C’s of call option agreement), is it possible we get a rezoning in 6 months time and it comes up with a favourable FSR of 4:1, but the developer for whatever reason (maybe they are too busy or don’t have enough capital) decides not to purchase our property until the very last month of the option agreement (24th month) or even worse just walks away forgoing the option fee altogether after 24 months. Yes we get to keep the $30k fee and keep the property but when you have the expectation of selling at $3-$4M, you don’t want to wait for 24 months and find out by then the developer decides not to buy. I know with a rezoning of FSR 4:1 will be attractive to other developers, but its that 24 month waiting time that is what we prefer to avoid!

It might sound like we want too much but if we can do a straight sale with 40 day settlemt at a discount to a FSR of 3:1, we will prefer this but not sure how realistic that scenario is.