caveat on sandwitch lease

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Maruco
Member
@maruco
Join Date: 2005
Post Count: 48
July 11, 2005 - 1:34 am
I am trying to do “sandwitch lease” but a little confused about caveat thing.
As far as I learned, when I get an option to control the property from a vendor, I put caveat and when I “lease option” the house to tenants/buyer, I won’t let them put caveat, right?
If they asked to put caveat? Or is there any problem letting him/her to put caveat?
Another question is :
I’ve got a tenant/buyer and now I need to look for a house where the vendor is willing to give me an option.
I thought of paying a few thousand dollars of commission to an agent when I successfully closed the deal as they lose a sale. (if they don’t get anything out of it, who wants to help me?)
But I will lose more than a half of the option fee that the tenant/buyer pays.
I just wonder how other investors are doing?
Thank you.
Sonja
Member
@sonja
Join Date: 2004
Post Count: 338
July 17, 2005 - 2:03 am
I’m no solicitor and I’m not experienced in “sandwich lease/options” but I can’t see the problem with having two seperate caveats (each one held by the seperate people who have purchased the options to buy) on the one property.
Is the solicitor you are using experienced in this area of property law? This should be something that he/she can accurately advise you on.
Best of luck with it.
Kind Regards,
Sonja
Maruco
Member
@maruco
Join Date: 2005
Post Count: 48
July 17, 2005 - 3:07 am
Thank you for your reply.
I have bought an IP recently, and since it is negative gearing, I am sort of stuck at the moment.
And I am reading here and there to get more knowledge to move forward, and I came across this idea of “sandwitch lease” which I don’t need to put any money down from my pocket.
The solicitor I used to purchase the IP was a real headache, so there is no way I go back to her.
So, I don’t have a solicitor who I can talk any concerns about properties.
But for the moment, I will keep learning and try to find solutions.
Thank you again.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 21, 2005 - 9:23 am
The problem with caveats, is the owner will have to consent to yours and then to the person that buys the option from you. This may be difficult to negotiate.
Terryw
Discover Home Loans
North Sydney
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Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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