Posted by Valdis Kennedy on January 18, 2001 at 13:03:53:
The most important thing you must do right up front is register the Option against the title to the lots. It is an easy process and if you go along to your local land registry office they will advise you how to and how much it costs…not as much as an attorney. Now the vendor cannot change his mind about the deal without breaching his contract with you. You can now safely advertise the lots for any price that you may wish to sell them for. In your contract with the purchaser you must make mention that you have a contract to purchase the lots. You may assign this contract to the purchaser for the consideration of the profit that you intend to make on the transaction. Example you purchase the lots for $45k and sell them for $52k…you may sell them to the purchaser on the understanding that he grants you a mortgage on closing the sale in the amount of $7k…that is your profit. There are a multitude of ways that you may make a profit from the sale of the lots or the sale of the option.