So you have decided to build your dream home and are looking for land to build on. If you decide to purchase land in a development, the following are some practical points to take into account when making your decision.
It takes time
If the title to the land has yet to be issued, you need to be aware that a subdivision, regardless of the size, can take time to be completed.
A subdivision requires a consent from the local authority and a survey showing the boundary of each of the allotments to be created. Once consent has been obtained, the consent conditions need to be fulfilled. This usually includes forming the accessways (i.e. roads) and installing services to the boundary of each lot.
Adding a ‘sunset’ clause
You need to understand what stage the developer is at, to ascertain how far away the title to the land is. If it is at the beginning stage, you may consider including a sunset clause in the agreement allowing you to terminate the agreement should the subdivision not be completed within a certain timeframe.
Land covenants - creating restrictions
In larger developments, a developer will often put a land covenant on the land to ensure that the standard of housing built does not devalue the development. This can include restrictions on the type and colour of materials to be used and the size, location of buildings that can be built, and whether you can use a relocatable dwelling.
If you are entering into an agreement, you should review the land covenant or proposed covenant, to ensure your intended building and use of the land will not be restricted by the covenant.
Contact James Cambridge to discuss your options.