Perth Property Options
Residential, Commercial, Industrial, Office, Mixed use, Special Rural or Aged Care
Contact Us
About Me
Don is a Dual Olympic Hockey Medallist 1964/1968.
I hope you are safe and well.
My name is Don Martin. I relinquished my Western Australian Real Estate License in February 2017 after 40 years in the industry.
My involvement in the use of Options trading in relation to Property/Real Estate commenced in November 2011. This method is not new. However, it is not used very often mainly due to lack of knowledge and understanding of it’s simple procedure which can lead to greater financial reward for you the property owner.
Most people do not know what is meant when they hear these words: “I have written a contract by means of an option on my property”. As a property owner you have the CONTROLLING ACE in your hands because it is only you who can write that contract AND it is done primarily on your terms. I say “primarily” because it takes two parties to execute the contract and both parties need to give a little to gain a greater benefit at the end. Essentially both parties must be happy with the contract as both parties wish to be winners. That is the method by which the property owners who have written the contracts and with whom I have participated in the option agreements have benefitted financially.
I am looking for owners of properties that have development potential. If you are one of these owners and you wish to secure a price above market value, I would recommend that you read on and then call me to discuss your situation.
I am prepared to offer you a figure above market value if in return you are prepared to offer me some extra time. In essence, we are exchanging money for time.
You write the contract (as mentioned above) after we have discussed and agreed on terms. The contract includes the following:
- You offer me part or all of your property
- You and I set a proposal including price, term of agreement, deposit
- You and I execute the agreement
- On settlement, you and I benefit financially
The normal and most widely used method of property sale is that of Sale by Private Treaty when a property is transacted between seller and buyer either privately or through the services of a licensed agent. This method is used when an owner decides to sell his/her property in the current market hoping that the property will sell within a reasonable time. At settlement the seller receives the sale proceeds.
The Property Option scenario also involves 2 parties (seller/grantor and buyer/option holder) who negotiate an agreed price to be paid within an agreed time in the future. In return for the benefit of the agreed extra time that the buyer receives from the seller, the buyer offers the seller the benefit of a figure above market value. Within this agreement is the scenario of a win/win situation for both parties. At settlement the seller receives the sale proceeds.
If a seller has any type of property whether it be residential, commercial, industrial, retail, mixed use, special rural or aged care and wishes to realise the proceeds from the sale of part or all of that property at some time in the future, the use of a Property Option agreement is a valid, ethical and useful means to achieve that end result. This process is suitable for all types of land holdings.
In my dealings with property owners the Property Option transactions have resulted in BOTH parties having a POSITIVE conclusion. Both parties are required, free of will, to mutually agree to the conditions of the Option Deed.
The normal Offer and Acceptance document used in every property sale transaction in Western Australia is the same document used in all Property Option agreements and transfers are registered through Landgate in a similar way to any other property transaction.
If you own a property that has development potential but may be limited by it’s relatively small land area, or if it’s area is large enough but would be enhanced if amalgamated with part or all of an adjoining site, I suggest that you speak to your neighbours (left/right/rear) to find out if they wish to take advantage of the benefits available by including their site in a preliminary discussion. If they are interested they can call me on 0400 900 868 or you can email me via the Contact page and all interested parties can work together for their joint benefit.
In order to alleviate any anxieties you may have about the legal, moral and ethical process of Sale/Purchase of Land by Property Option, please refer to the following:
- The Real Estate Institute of Western Australia has available a Property Option Agreement document for use by it’s members and the public. Phone 9380 8222.
- The Department of Mines, Industry Regulation and Safety (Consumer Protection) is available to answer any questions you may have and to enforce the law thus ensuring all consumers are protected. Phone 1300 304 054.
- Landgate (the arm of the WA Government that administers the registration of all property dealings in Western Australia) oversees the lodgement of any legal document over the title to a property. Phone 9273 7373.
- Legal Advice: Before final execution of the Option Deed, I shall give you a Draft Copy of the Option Deed so that you can consult your solicitor to ensure that your interests as agreed upon between you and me and shown in the Heads of Agreement are protected.
Property Options
What are property options?
An option agreement occurs when a landowner grants to another party the right to purchase the property/land at an agreed price within an agreed term in the future. A fee is paid by the purchaser/option holder to the seller/grantor and during the term of the option agreement, no one else can buy the property.
How do these agreements work?
An option is an agreement made between a seller and a buyer to exchange land for an agreed price within an agreed term. This allows the seller to achieve a higher than market value for their asset. As option terms are normally around 24 months, the seller does not have to move right away, a benefit which gives the seller extra time to satisfy their needs.
The agreement between the seller and buyer is secured with the payment of an option fee to the seller. After this, the buyer has the right within the terms of the agreement to obtain a Development Approval (DA) from the local council. This is done at the buyer’s expense.
The property transaction then progresses in accordance with the terms of the original stamped agreement.
Case Study
Kidman Resources selects site at Kwinana for proposed lithium refinery
Kidman Resources Ltd (ASX:KDR) and Western Australian Land Authority have entered into an Option Agreement
Kidman Resources Ltd (ASX:KDR) will lease an industrial site at Kwinana in Western Australia for its proposed lithium refinery.
Western Australia Lithium (WAL), Kidman’s 50:50 joint venture with Sociedad Quimica y Minera de Chile has entered into an option with Western Australian Land Authority.
WAL has advanced a definitive feasibility study for the refinery. The study was completed in 2018.
The option was for 24 months during which time the final lease terms were agreed
Owner of a property in Como
Owner of a property in Como and I met at owner’s home. I confirmed with the owner that he knew what is meant by an OPTION. I then asked him the dollars he wanted for his property and the time he was prepared to offer me, he said “$1,010,000 and 2 years. After completing my due diligence I said “ok”. We prepared and signed the Heads of Agreement. I then, at my cost, had the Option Deed prepared by a solicitor, handed a Draft Copy of the deed to the owner thus giving him the opportunity to consult his solicitor, after which we had the Option Deed duly executed and I paid the agreed option fee to the owner.
The caveat was then lodged at Landgate.
When the 2 year option term was coming to an end, I asked the owner if he would be prepared to allow a further 3 months period for settlement and offered him an extra $10,000 for each month. He agreed and at settlement he received $1,040,000 less the option fee.
Owner of a property in Midland
Owner of a property in Midland and I met with same procedure as above. On this occasion the owner said $2,000,000 and 16 months. Due diligence was undertaken and we agreed to proceed. Same as above but no extension of time was requested. At settlement the owner received his $2,000,000 less the option fee.
Frequently Asked Questions
-
I am prepared to offer you a figure greater than market value for your property if in return you are prepared to offer me some time. We are exchanging "DOLLARS for TIME"...MORE TIME MEANS MORE DOLLARS.
-
My answer is: "When you are ready". It could be next week, next month or next year. It is important that you give yourself sufficient time within the option agreement to meet your own guidelines.
-
An option is the right but not the obligation to buy an item (vehicle/property/stocks/bookcase etc) at a specified price within a specified period of time.
-
If I do not exercise the option you retain my option fee (deposit) and you become the owner of any Development Approval (DA) obtained on your property at my cost. This DA is an approval for development of the site which is still owned by you. Therefore, you become the rightful owner of the DA at no cost to yourself.
-
During our discussions I would ask you 1) the dollar figure you want for your property and 2) the length of term you would prefer for our option agreement. This gives you the opportunity and the right to determine the payout figure which would be above market value. I would undertake my own feasibility with your figure in mind to determine if the payout figure is able to provide a win/win situation for both you and me. If we both want a deal and if we are able to compromise in order to secure a joint positive end result, there definitely will be a beneficial agreement between you and me.
-
No
-
The Property Option agreements I have undertaken range from 16-24 months, terms which were proposed by the property owners in order to satisfy their requirements. This period also allows me the time to obtain at my cost the DA.
-
If you wish to place your property on the market now, ie before you enter an option agreement, you are at liberty to do so. However you would obtain today’s market price less any sales and marketing fees.
-
Yes, we do. The sales figure shown on the OA (less the option fee/deposit) is the nett amount you would receive at settlement. There are no deductions, no sales fees, and no “subject to finance” clause.
-
We are separately responsible for our own legal expenses.
-
Within the terms of our agreement there are various clauses that we both include in order to protect our respective interests. One of these clauses states that you shall give me written authority to consult with surveyors, architects, engineers, town planners, local and state government entities and other parties in order to submit plans etc to obtain a DA. All of these consultations are done at my cost.
-
These are all by mutual agreement as this has to be a positive result for both of us. For example, let’s say the agreed term is 24 months but because of personal/family or other reasons you do not want to have the option exercised before 19 months have elapsed. In this situation we would add a clause to the agreement to determine that intent and settlement will then not occur within the first 19 months of the agreement.
-
Yes. However, a clause declaring that intent must be shown as a condition of sale on the O/A document which forms part of the option agreement.
-
One of the clauses in our agreement states that I shall have the right to lodge (at my cost) a caveat over the title to the property in order to protect my interests in the property. This process is undertaken through Landgate.
-
This information is for all property owners who wish to take advantage of the benefits available through sale of their property by means of a property option. The owner would realise financial benefit in a simple, legal and timely fashion. There would also be financial benefit to me.
-
Yes I would be, subject to undertaking a feasibility study and performing my due diligence.
-
Generally, two weeks.
-
Yes, you definitely can do so.
-
Yes, I can. I am able to perform all the required tasks on your behalf.
-
Yes.
-
You and I are the only parties to this agreement and none of your neighbours etc will know about it unless you wish to advise them. The agreement will only become public when settlement has occured and after the statutory transfer documentation has been lodged at Landgate just as is the case in any other settled property transaction.
-
If you have questions that need further clarification on any matter relevant to your situation, you can advance to the “contact page” and send me your question/s.
Or just call Don Martin on 0400 900 868. We can get moving to have your questions answered and hopefully your problems resolved satisfactorily.
Contact Us 
If you are interested in more information or have any questions, please fill in the details below including your property details in the “Message” section and press “Send” or call Don Martin on 0400 900 868.
ABN 39 518 132 678