Subdividing a property for the vendor

[freezinhot]

I have put in an offer on a property I am going to do up and sell, the vendor owns the property next door and can be subdivided and he wants an investor to subdivide his property for him and buy the subdivided land there after.

Here is the twist, he accepts the offer I made him on the property next to his which he owns, BUT there may be an issue with his house because of the house and distance to the fenceline, I think from memory there needs to be at least 4 meters and at present it may be a little tight. In short the vendor is worried that if the purchaser buys only his property next door, he may not be able to subdivide his property.

So my solution is to do both, purchase his property next door to trade and also do the subdivision myself at my expense and sell the section off after subdivision is complete. I would ask for vendor finance to pay for the cost of subdivision and while this is in the process do up the other property to sell.

I want to get the property signed up so is there a clause I can use to secure the trade property today such as " Contract is subject to feasabilty of property to be subdivided" or something similar to that.

Any help would be appreciated, I have never done a subdivision before and this is a great challenge for me and am looking forward to the experience.

Thanks
FH

[xris]

I have put in an offer on a property I am going to do up and sell, the vendor owns the property next door and can be subdivided and...

Hello Patrick,

I have never done this before. Does it require any special surgical equipment or would a sharp knife do?

xris

[Commercial Dan]

Any help would be appreciated, I have never done a subdivision before and this is a great challenge for me and am looking forward to the experience.

Thanks
FH

Hi Patrick
Be very careful in this situation, I have done subdividing in the past and it does take a lot of time. It is extremely profitable though but the length of time can be 18 months till a new title comes through. The time lag can drive you bananas if you have other plans you are trying to implement!

Make sure you take the time consideration into your plans, all the best though and email me if you have any questions!

[FreezingHot]

Thanks CD.

Can anyone give me the number for Grands Surveying, I have been looking for the number on the internet without any luck.

FH

[Cliffy]

Do you mean Grange? www.grange.co.nz

You can just use a standard Due Diligence clause in your agreement.

[FreezingHot]

Thanks Grant, yes Grange I think, have been given the
company contact from Ivan.

I am going to sign up the deal today so DD would be great also.

Thanks
FH

[FreezingHot]

Just called Grange, very helpful indeed.

FH