Help- being offered lots of money

gettingwise

need advice, hopefully from anyone in similair position, or with legal knowlege

we have no real interest in selling our house , its a very large 3 bed hse close to transport , but on a busy road.

one of our neighbours (3 doors away) is an estate agent, and has 'sold' his house to a property developer. The same developer is asking if we (and most of the street) would be willing to sell. his offer is at least 50K above what the house is worth (at least looking at previous properties sold on this street).

the thing is ..
what he said
he basically 'buys' rows of property (with large gardens,) once he gets planning permission to build whatever (holiday inn, flats, etc) he sells to
any interested development company as available land with planning permission.

BUT by 'buy' he means that he sends us a contract now which we sign.This stops us from selling the property or building extensions until he gets a reply as to the planning permission. If they refuse permission he walks away, if they grant permission he will buy our houses..

any opinions about the contract ? or has anyone experienced similair ??
money makes me confused.

Debt_Free_Chick

gettingwise wrote: »

BUT by 'buy' he means that he sends us a contract now which we sign.This stops us from selling the property or building extensions until he gets a reply as to the planning permission. If they refuse permission he walks away, if they grant permission he will buy our houses..

any opinions about the contract ? or has anyone experienced similair ??
money makes me confused.

The contract is, effectively, an agreement that you will sell to him on the condition he gets planning permission - essentially, you give him "first refusal".

What you want to see in the contract is something about the price he will pay, when he gets PP - which could take months. In that time, prices could rise - so a price "today" would probably not be a good deal. However, if prices fall, it would be.

Why not ask to see a draft contract so you can see what's in there? It's difficult to advise, without knowing the terms he's offering.

Alan_M_2

I'd like to see fixed time in the contract, i.e

I'd agree to first refusal for the fixed price, but my agreement is only valid for 6 months (or a reasonable time) from the date signed. The renegotiate at that time.

If you want move of course, but also consider the value of your home (and you quality of life) if you didn't chose to sell, and the developer got permission to build a Holiday Inn right by your font garden.

I think it's a sound proposition as long as there are resaonably short time limits applied.

paddy's_mum

No reason at all, in law, why you can't sign a contract such as this which I believe is called a Conditional Offer. However, equally, there is nothing whatever to prevent you negotiating on this offer whereby you agree, subject to there being a time limit, say three months or whatever suits you, and subject also to him paying you a sum of money for the privilege of having that contract in his hand.

In effect, it operates as a non-refundable holding deposit. The fact that if the sale goes through, you get 50k over the value of your house is a totally separate negotiation and need have nothing to do with the conditional offer.

If the idea tempts you, talk about it with him. Commit to nothing at this early stage but if it goes further, make it clear that you expect the developer to pay all legal costs relating to the conditional offer.

However, as I understand it, it is perfectly possible to make a planning application when you do not own the land in question so I am not sure why is is so keen to have these contracts in position. Perhaps you need to ask him that question but I cannot see any reason why you should not explore the whole idea with him.

Perhaps ask the estate agent neighbour to show you his paperwork so that you can put your mind at rest. Of course, if he has no paperwork to show you, be a little suspicious. Uncommon but I have heard of this before and don't instantly see it as some sort of scam. Hope that helps.

Guy_Montag

I'd get a lawyer to look over the contract before you sign it.

gettingwise

thanks everybody

Alan M is right, of the 8 houses 3 have been trying to sell over a year the rest had no interest in selling , but everyone is thinking about the money and are scared incase they end up 'the house next to the holiday inn'

Paddy's mum -good idea about charging him for the contract (after all its going to cost me in getting a solicitor) will ask him once I see the contract.
will also pass on the info to neighbours (at least the ones who havn't signed yet )

and DFC good point about prices rising, had not thought about that. Will see once contract arrives, but think good nogotiating point.