spotters fee??

Negotiate a price, put an option on it (with assignable rights) then seek a buyer. That way, you will pay a small premium (which will form part of the purchase price or be surrendered), have an exclusive dealing period and be able to sell what you have yet to buy at a decent profit. Even if you have a $10k option and you make $20k on the deal you have risked very little for a 200% profit.

An option is a contract to puchase something (property or shares) for an agreed value at some time in the future with the person taking out the option paying the owner an 'option fee'. Eg a developer will pay an option fee to the property owners subject to recieving development approval or rezoning  within 6 months. The developer will outlay say 2-5% of the agreed price of the house as the option fee for the exclusive right to achieve a DA etc within a set time period. He further agrees that he will buy the property at the agreed price prior to the expiry of the option period, if he doesn't proceed ie fails to achieve the DA/Rezoning he will withdraw from the sale and forfeit the money paid for the option. The vendor must see that there is value in it for him not to sell at present but wait the option period (money is an incentive, so is the opportunity to lease back a property on  a long-term basis freeing up their cash).

You would need to talk to your solicitor about creating the option, period, option fee, creating the caveat and framing the offer, etc. If you take an option you will need to secure your position on the title of the property by way of a caveat restricting the owner dealing with anyone else/selling the property.

The beauty of an option is that you do not buy the property (although you can), you on-sell the option to someone else who will exercise the option. Your outlay is the option fee & costs. You will have to find someone willing to purchase the property prior to the expiry of the option otherwise you will lose your 'deposit'. As you haven't bought the property, you do not pay stampduty on the transfer of the property (only on the transfer of the option).

The concept varies from a 'flip' where you buy a property off the plan (under construction) and try to offload it for a capital gain (flip it) before completion however the principle of having a small outlay/deposit then trying to find a buyer is the same. Unfortunately with flips, you may end up having to buy the property if you haven't offloaded it (found a buyer) before settlement.

Terry, would that be the case? There is generally no requirement for being buyers agent (I believe this is an unregulated market still but will/may have changed) however there is nothing preventing you selling 'your' property privately – all you need is to meet the requirements to transact the property or to assign the option.

In NSW Buyer's agents need to be registered with the department of fair trading. They must do a course which is almost the same as the full real estate licencee course – 12 weeks or so full time.

Does anybody know the rules relating to Victoria on the matter?

Also, how does one go about finding investors who might be interested in buying such a property off your hands?

Terry is right, you do need a Buyer's agent license. In regards to being a spotter, what do you consider to be a good deal? what is your experience? How many IP's do you own or have negotiated in behalf of clients?