Development site acquisition can refer to the purchase of a house in order to build a duplex, through to the purchase of land for a several hundred unit development.
Regardless of the size of the project, there are some common things that need to be considered and for which you should obtain advice. Some of those things include:
In addition to the standard terms and special conditions associated with any contract for the sale of land, there are numerous other considerations that need to be made and the proper advice should be obtained early on to ensure you are structured correctly and the transaction you intend to make is not riddled with uncertainties and risks.
The nature of the advice to be given, or the further investigations that might be required will vary and will really depend on the specific transaction being discussed, its size and location, as well as the specific intended use of the land and a host of other variables that may be relevant.
Our expert team can guide and assist you every step of the way to ensure your interests are protected and you have clear and complete information; necessary in making an informed decision.
The range of services we offer are geared toward the development and construction life cycle. Not only does this holistic approach save a great deal of time, it ensures seamless communication, one point of contact for convenience and can save you a great deal of money. You worry about completing projects on time and in budget and we will take care of the rest.
One popular way in which development sites are usually acquired are through the use of Options.
Options are a great tool as they allow you a significant period of time to decide if you want the property, as well as providing other benefits.
A Call Option is where a prospective or intending purchaser (otherwise known as the Grantee) is given a certain period of time to decide whether to buy the land and “exercise” the Option. In this case, it is the prospective purchaser that will decide whether to purchase or not.
Under a Put and Call Option, if the prospective purchaser does not decide to exercise the Option within a given period of time, or otherwise, elects not to, then the person selling the property (otherwise known as the Grantor) can force the prospective purchaser to purchase it. Of course extensions of time can be negotiated, usually for a fee.
Options in their most basic form are essentially agreements between a Grantor and Grantee (seller and buyer); it is a promise by the seller to keep the property off the market and not sell it to anybody else, whilst the buyer decides whether to buy it.
Generally, a purchaser will undertake the necessary due diligence before the time to exercise an option expires. The due diligence will include determining if a DA can be lodged and with what limitations.
A seller would usually co-operate with a purchaser to sign Council documents relevant to the process, whilst these investigations are being undertaken. The purchaser will also require access to the property to carry out other investigations and obtain any condition or other reports also
The purchaser will pay the seller an option fee, which is typically 1% of the purchase price. This fee is not usually refundable if the purchaser decides not to proceed, but will generally form part of the purchase price if the purchaser does go ahead.
There are many advantages in using Options:
Acquiring land for the purpose of development, particularly when Options are involved can be tricky, technical, risky and complex.
There are a host of variables and factors that need to be discussed, investigated and considered and the right advice should be obtained.
Advice Every Step of the Way
The range of services offered at Gavel & Page Lawyers are geared toward the development and construction life cycle. Not only does this holistic approach save a great deal of time, it ensures seamless communication, one point of contact for convenience and can save you a great deal of money. You worry about completing projects on time and in budget and we will take care of the rest.
I was a little cautious about lawyers generally, even more so since I was embarking on my very first development. A referral to Gavel & Page Lawyers let me put my previous concerns behind me. Open. Direct. Clear communication. Detailed and productive advice. Competitive fees. Down to earth and contactable. Not sure what else you need.
Constructing a landmark development has its own stresses. It was such a pleasure to know that Gavel & Page Lawyers had thought of everything for us from a legal perspective, allowing us to focus on the construction of the development. They were very easy to deal with and always contactable.They drafted all the off the plan contracts for the sale of the 100 residential units, drafted our subcontracts, negotiated Agreements to Lease and the Leases, were available weekends in attending the project’s launch and competently advised us on all issues along the way including construction issues. They made the sale of the units and leasing the retail/commercial spaces seem as simple as selling a house and their services came at a very competitive price. In short, the quality of their service was next to none.
Gavel & Page Lawyers are now our “go to” firm for any contract or property related transactions. They were referred by a family friend and we were not disappointed. They reviewed all the documents and advised us on all the issues surrounding our purchase of a commercial property, ensuring the transaction ran smoothly and relieving a lot of the stress involved They also reviewed, drafted and settled commercial terms which were fundamental to our business. They explained the terms in a way that helped us understand their implications and significance which was of great benefit. A pleasure to deal with, down-to-earth, reliable, efficient and competent. Great job! Highly recommended!