Long settlement code for Option

Discussion in 'The Buying & Selling Process' started by WellnessWarrior, 19th Oct, 2015.

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  1. WellnessWarrior

    WellnessWarrior Member

    Joined:
    19th Jun, 2015
    Posts:
    16
    Location:
    Pyrmont Sydney
    Hi all,
    Long time lurker, few times poster here.
    I have a relative selling a property. We have quite a few developers interested and some have tried to go the option path.

    We look like we have a fairly decent offer in the works but they require a long settlement. Is this just another way they might try to squeeze in an option type of arrangement? That is, a 6 month settlement allows them to do DA with council and if they don't get it through they pull out of the deal?

    Does that look like a scenario that may be at play with a 6 month settlement?

    Cheers.
     
    WellnessWarrior, 19th Oct, 2015
    #1
  2. MRO

    MRO Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    318
    Location:
    Perth
    This may be a way for them to add value prior to settlement to assist with finance. Also reduces their holding costs.
    Not really an option unless they are able to walk away from the deal.
    A developer would normally pay for an option, but maybe you have included a premium in the sale price.
     
    MRO, 19th Oct, 2015
    #2