The dangers of option contracts . . .

Residents can live in a beautiful house in a quiet street. However with the NSW Government’s rezoning and the circling of developers, they often think of the windfall profits they make from selling their house. Often they combine to sell with their adjoining neighbours to make mega blocks.

However, many are still waiting to be paid.

More and more residents, across Sydney, are tempted to take up option contracts, particularly with the developer bonanza of ‘State Significant Developments’, the Transport Oriented Development (TOD) and Low to Mid-Rise Housing (LMRH) rezoning plans.

Homeowners are often offered double the value of their homes as temptation to sell into make mega-lot sites for medium and high rise apartments.

However, many are still waiting, along with other neighbours as developers struggles to gain planning approval and funding. Some are delayed by complications such as a trust behind the development going into liquidation. Settlement of option contracts can be delayed, some up to two or three years.

And with the building of highrise, a suburb changes and the prices change. So, what seemed like once a financial windfall is now no longer. As more sites come to market their value diminishes.

Read SMH articles

• She signed her home over for sale in 2015. Jennifer is still waiting to be paid HERE
• Pamela is part of a $55m mega-lot – but she’s not smiling HERE