Is it legal to presell Lots for a Land Development prior to owning the Land?

[Regeneration]

I want to create a "Country" Subdivision with Amenities, Recreation and Sponsored Partnerships with Micro-Farms producing Food Shares for Lot Owners. can I legally take Presale Lot Deposits from an established number of purchasers to use as a Down Payment to purchase the Land and then develop and complete the Lot sales? The plan is to require both Lot Deposits and proof of individual Loan approval on the future Lots. Once purchased I would survey/ subdivide/ install electric & then complete individual Lot purchases via the pre-approved Loans. Any help or advice is appreciated.

 

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[MJ DeMarco]

You need to hire a lawyer. And considering the gravity of the project you'd like to undertake, it is something that you cannot avoid. And it should not be shortcutted.

Personally, if you took cash from me for a property you do not own or have control over via some other contractual agreement, I would feel like you are committing FRAUD. Is it fraud legally? I don't know -- which is why you need a lawyer.

 

[Kak]

You should look up assignment deals and real estate option contracts.

As far as I’ve heard, those are about as close as you’re going to get.

Like MJ said, get a good lawyer.

 

[Guest-5ty5s4]

Like @Kak said, there are tools you could use to do this, but like @MJ DeMarco said, if you do it wrong you might wind up in jail and be a bad man's boyfriend.

Or you just get sued by a bunch of people and instead of being +$1 million you end up -$1 million...

One instance where you really need to pay the professionals.

 

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