Buying a vacant block of land to build your dream house on? If so, you’ll be given a Contract of Sale (Contract) from the property developer’s sales agent that you’ll need to sign before paying your deposit. However, there are some key things you should carefully watch out for before signing.
1.Sunset Clause – the inclusion of this clause is normal and enables the property developer to end the Contract if the Plan to your property doesn’t register with the Land Titles Office within a certain period. However, be aware that this timeframe may be overly long, which means that your deposit will be tied up in their solicitor’s trust account.
2.Penalty Interest Rate – the inclusion of this clause is normal and applies when the buyer fails to settle on time. However, some developer’s commonly attempt to insert rates that are higher than usual.
3.Leasing of your property – for blocks of land in large estates, the property developer will include a clause that prevents you from putting up a ‘For Sale’ sign or leasing the property without their consent. This type of provision is normal and exists to protect the integrity of the estate in which you have purchased the Property, but if you were planning on buying the land to build an investment property on, then this may be problematic.
4.Design Guidelines – often developers in large estates have strict and rigid guidelines for the types of homes that can be constructed and materials that can be used, which ultimately protect the integrity of the estate. You need to ensure that you are aware of these restrictions so that your new home style is allowed.
Titlexchange can review your Contract of Sale before you pay your deposit to give you peace of mind. Titlexchange offers a wide range of services relating to property title transfers. Our online conveyancing model ensures a more streamlined, stress-free, and transparent service compared to traditional offerings. Get started now, or speak to one of our lawyers on 1300 776 775.