South Brisbane Vacant Block

Background

Two brothers (who we will refer to as John and Jack) purchased a block of land together a number of years ago.  The property was a vacant block of land with telecommunications lease, with the site earmarked for future development.

Unfortunately, the relationship soured over time reaching a point of irreconcilable differences. In due course, John was faced with a situation where he needed to sell his interest due to personal debts.  Sufficient equity was available in the property to satisfy John’s creditors however, as the brothers were unable to agree on terms to sell the property, John was unable to unlock his equity to pay his debts.

John was concerned he may have to sell his family home to pay his debts given his inability to agree on terms with Jack to sell the property.

In addition, there was a separate dispute regarding how much each brother had contributed to the property and how much each would receive upon a sale.

With the assistance of his advisor, John approached a solicitor, which led to QSAS being approached to assist with finding a solution.  Time was of the essence due to ongoing pressure from creditors. The agreed course of action was to apply to the court for the appointment of a Statutory Trustee. The drafting of the orders to ensure the application would succeed, was essential, and as a result of careful planning the orders were granted without contest by Jack.

Process

QSAS immediately took steps to secure the site and identify any practical issues in selling the property. QSAS also urgently reviewed the telecommunications lease which had some rather unique terms and conditions. We proceeded to enter discussions with the tenant to address matters impacting the sale of the property. Discussions were also held with the mortgagee to secure their support during the process.

QSAS commissioned an independent valuation, and a consultant to assist with co-ordination of any repairs, and the agent selection process.  As a result, we were able to negotiate the best possible commission rate with no additional cost to the stakeholders (including the mortgagee) with the consultant’s fee built into the agent’s commission. The decision to engage with a consultant in this instance, allowed significant cost saving to the brothers. 

Result

The property was sold within two months, following a campaign that created significant interest in the property via an online auction process. The adoption of this unique sales strategy, resulted in a sale price that materially exceeded market valuation, providing each brother with a significant return, well beyond their expectations. To an extent, this great result appeased some of the angst between the brothers and provided a platform for a smoother negotiating process for the balance of the proceeds.