a friend of mine is selling his block of land – its quite large (half an acre). he has accepted an offer subject to council approval on the subdivision – and a 6 months validation.
my question is this – what is stopping anyone from buying a block of land with this type of clause with absolutley no interest in subdividing – waiting for the 6 months to end and if the market has increase to buy the property and if it hasnt (or gone backwards) they just drop the property.
no risk and you have an extremely valuable asset in your hands for 6 months.
fyg i know coastal places that have increased in value 50 pct over 6 months…
has anyone encountered this??
I would say that the purchaser might have seen your friend coming, and put these clauses in for that exact purpose, for a quick profit 6 months down the track.
I guess this sort of things happens a lot with purchasers who are a bit more savvy than the vendors.Hi Guys,
Wouldn’t there be a cost to the buyer for applying for the council approval? Doesn’t the buyer have to seek council approval for the clause to be fulfilled?
You must be logged in to reply to this topic. If you don't have an account, you can register here.
