Hi Guys,

This post is a bit of warning to all of those peeps who are looking at signing Call & Put option.  DO NOT SIGN anything before you speak with your solicitor. Here is my classic example. I wanted to take benefit of post 1st October FHOG scheme that the government has on offer. The person I was dealing with suggested me that i should enter a 'Call and Put" option. what this document does is(as described to me) it fixes the price of the property and allows you to settle the property at a future date thus enabling us to obtain the FHOG. THIS IS A CON. They will pressurize you with all their tantrums to sign the document without consulting your solicitor. I later found out that in the document he was asking me to sign, my fees for the call option was in tens of thousands where as their put option fee was merely $1. If something happens between the period of you signing that document and that future date and you cannot buy the property any more,your tens of thousands of the deposit will be forfeited by the vendor. Further,the vendor will exercise his put option after the expiry date of our call option in which YOU WILL HAVE TO BUY THE PROPERTY.YOU WILL HAVE  NO CHOICE what so ever. Legally/technically, they can sue us on the basis of our signed agreement.

Although,the document in itself is a legal document covering every angle for the vendor/builder. It seems to be legitimate but the clauses are outrageous and if exercised, it will burn you.

Besides, I can't comment on the workmanship of the house since i did not buy one. If you have money with you, go through the bank (normal process). Do not hand out money to them directly. Let your  solicitor and bank deal with the intricacies of the legal process.

Moral of the story: Do not put your hard earned money into risk. Do not sign without consulting your solicitor and where possible stay away from entering into 'Call & Put' Option.

Hi Guys,

This post is a bit of warning to all of those peeps who are looking at signing Call & Put option.  DO NOT SIGN anything before you speak with your solicitor. Here is my classic example. I wanted to take benefit of post 1st October FHOG scheme that the government has on offer. The person I was dealing with suggested me that i should enter a 'Call and Put" option. what this document does is(as described to me) it fixes the price of the property and allows you to settle the property at a future date thus enabling us to obtain the FHOG. THIS IS A CON. They will pressurize you with all their tantrums to sign the document without consulting your solicitor. I later found out that in the document he was asking me to sign, my fees for the call option was in tens of thousands where as their put option fee was merely $1. If something happens between the period of you signing that document and that future date and you cannot buy the property any more,your tens of thousands of the deposit will be forfeited by the vendor. Further,the vendor will exercise his put option after the expiry date of our call option in which YOU WILL HAVE TO BUY THE PROPERTY.YOU WILL HAVE  NO CHOICE what so ever. Legally/technically, they can sue us on the basis of our signed agreement.

Although,the document in itself is a legal document covering every angle for the vendor/builder. It seems to be legitimate but the clauses are outrageous and if exercised, it will burn you.

Besides, I can't comment on the workmanship of the house since i did not buy one. If you have money with you, go through the bank (normal process). Do not hand out money to them directly. Let your  solicitor and bank deal with the intricacies of the legal process.

Moral of the story: Do not put your hard earned money into risk. Do not sign without consulting your solicitor and where possible stay away from entering into 'Call & Put' Option.