Building on parents farm financial /legal issues

Hello, Has anyone got any insight into building on a farm owned by parents and the financial/legal issues of this?
Eg.
What are the options when they pass away or sell?
If property must be sold when they pass away and divided between kids can the investment into the property be recouped as well as the share?
Buying into some of the property ownership and option?
Can you own the dwelling but not the la

Appreciate any insight?

 

I have a client who owns a commercial building but not the land. There is a lease of the land.

If you own the building then it wouldn't pass via the will of your parents.

You should seek legal advice on the vast issues involved and alternatives - you lend them the money and then construct it.

 

Are there any building rights attached to the land ie are you allowed to have more than one house on the property or If you subdivide the property?

 

Thanks for the replies.

Looking at building a dual occ ptins and or possibly a large commercial type shed to.
Cant subdivide the block which is a bummer,
Thats interesting about owning the building and leasing the land!

 

Which state are you in? Maybe you could consider buying the land from your parents under a vendor finance agreement. That way when they pass, your rights would prevail and your mortgage to your parents would be absorbed by the estate and possibly offset by any entitlement you may or may not receive from the will.

That is a possible solution however, contingent on the parties agreeing. In any respect, look after your parents and love them unconditionally until they pass.

Good luck and hit me up if you want to know more.
Cheers

 

Thanks for the reply Gavin, yes that is another interesting option. Would be interested in knowing some more about it. Property is in NSW

 

The trouble with the VF is, in an installment contract, stamp duty and CGT will be triggered upfront.

 

A license to occupy the land may avoid ownership changing and not be a long term lease. Seek legal advice as it can assist with duties etc and not be a CGT event. The premium paid for the right may be income but could be nominal. Then a CGT event at a lesser value for parents perhaps?

A good explanation (not personal advice of course) follows

Lease vs Licence - Difference Between Lease And Licence: Why Does It Matter • Corney & Lind Lawyers