My mother, along with her three siblings, have inherited a waterfront block, currently with a small dwelling but zoned for four-storey apartments. Two of her siblings want to sell their shares, while my mother and her sister want to keep their share and develop. They can not come up with the $1.1M+ that would be required to pay out their brothers, so are looking at other options for how to retain their shares, with the ultimate goal of owning an apartment in the new development and making some profit in the meantime.
Is this sort of arrangement a logistical nightmare? How would they go about finding an appropriate developer to engage with? Two other developers have purchased blocks in the same street – one has completed building and sold all 12 units, while the second is at DA stage, planning 12 units.
Any advice that anyone has would be much appreciated.
Why not approach the same developers that have done projects in the same street?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Huskisson,
Sounds like the two sisters have their heads screwed on right.
They can not come up with the $1.1M+ that would be required to pay out their brothers, so are looking at other options for how to retain their shares, with the ultimate goal of owning an apartment in the new development and making some profit in the meantime.
Could it be that the sisters might be able to find a smaller amount that will keep the boys happy until profits have been made… It might cost the sisters a little more to “negotiate”, but the pay-off to all would likely be worth waiting a couple of years.
e.g. If the brothers would accept $100k now, with the balance in 3 years time (perhaps even with a small amount of interest paid on the $$ they don’t get straight away….) then this “might” buy the sisters enough time to fully develop things and arrange a payout (perhaps by borrowing against their newly owned and newly built apartments?).
It is all about negotiation, but, whatever outcome is decided, do make sure that it is noted down in a legal manner, and agreed to by all parties (just so that nobody is “surprised” down the track.
Good luck – this sounds like a really good opportunity for the four of you.
Benny
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