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Can I sell off-plan commercial property before settlement?

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  • Can I sell off-plan commercial property before settlement?

    Hi all, I'm a bit of a green horn to property investment and have a question relating to whether or not you can sell an off-plan commercial property before settlement. The situation is that about a year ago my wife and I paid a 5% deposit on a $1.2M+ piece of bare commercial light industry land. Settlement for the property is a couple of years away yet and it is tied in to be conditional on the completion of a new arterial road around town (which connects the property to the main road) which is not due for completion for a couple of years. We have some other things that we may want to do with that deposit money now so are reconsidering the whole thing. Our legal advice is that we could approach the developer to see if they would refund our deposit (net result = a loss once legal fees and interest are taken into account) or we enter into an agreement with a new purchaser that we settle on the day we get title in a couple of years (advised this is risky as if they pull out we are left to settle). The current market value of the property is indicated by the real estate agent to be around 6 - 10% more than what we originally paid. Anyway, if we found a willing buyer at the current market value is there anyway to sign the agreement over to them and realize the profit there and then and then be done with the whole thing at the same time(hope that makes sense)? Your thoughts?

  • #2
    I'd imagine you could assign your right to purchase from the developer to a new purchaser.

    Lawyer is the best one to answer.

    That or the developer. What does your agreement with them say in this regard?
    Squadly dinky do!

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