Hones News

Group Sales by Multiple Owners

We have been approached by groups of property owners who have decided that the sale of a number of adjoining lots would yield far better return than the sale of individual lots. We have prepared templates and agreements for this form of sale. If you are thinking of this type of arrangement, then you should see the expert team at Hones Lawyers who can prepare documents and give you advice and assistance on both the commercial and the planning aspects of your matter.

One thing that all parties must agree on is how the property is marketed. Once the number of lots is calculated and advice given on the expected sale price for a large portion of land, all owners need to agree on how the total price that is presented to the developer is apportioned. Because the developer is only looking at land value, all owners have to divorce themselves from the differences between the properties. The fairest way is for the proceeds to be divided proportionate to the area of land of each lot, irrespective of whether it is a corner block, elevated or has a more substantial home than others. This will be the first matter to be determined between owners wishing to enter into this form or agreement.

We are always available to discuss structures for developers or vendors wishing to take advantage of a group sale.