Flipper/Rehabber · eastern, WA · Member since 2017 · 35 posts · 19 votes
I need some direction guys and gals... I have a bare lot I’m hoping to buy, decent price, decent size and within city limits. Owner and I have an agreed-upon price. Problem I’m having is, in talking with the city, utilities and access road (along the easement) need to be installed prior to sub plotting the parcel. I need some help on writing up a contract to where if I put out all the money for that work, the seller can’t back out, and at the same time have the negotiated price put to paper.
Flipper/Rehabber · eastern, WA · Member since 2017 · 35 posts · 19 votes
7y
**EDIT**
Just to clarify (and BP won’t let me edit original post). This is currently ONE parcel that needs to be sub plotted before I purchase (owner is only wanting to sell me back half of property). I can’t buy it before it’s sub plotted, but can’t sub plot it until the work is done...thanks
Rental Property Investor · Oklahoma City, OK · Member since 2017 · 13 posts · 7 votes
7y
The way I have seen this typically done is to write the contract contingent on city approval of utility, street, and subdivision design. Depending on the amount of work that needs to be done, you will likely have to engage a Civil engineer to help with city approvals. Once you have all those approvals, then you can close and start the work. At the same time, you don't have to pay interest during the approvals period and it takes care of the risk of them backing out of the deal, because the work isn't done prior to close.