If you are looking to buy land in a land estate you’ll receive a Contract of Sale from the property developer’s sales agent. Before paying your deposit, you’ll have to sign you contract so it is important that you understand what it means. With help from our friends at Titlexchange, we explain 4 important things to look out for in youcr contract.
1. Sunset Clause
It is important to read your contract thoroughly, and consider speaking to a solicitor for a contract review, because although there are a lot of clauses, such as the sunset clause, that appear normal in a contract, you want to make sure that they are not being manipulated. A sunset clause is essentially a protection for both the seller and the buyer that usually states that if a development takes longer than the agreed term, the buyer is entitled to compensation, however sometimes they are given a refund. Remember that a sunset clause can vary significantly and you should pay attention to your individual circumstance.
2. Penalty Interest Rate
This is comes into play when the buyer fails to pay the deposit at settlement. After this time a penalty rate is added to the due amount. It is a normal clause to have in contract of sale, but make sure you consider the rate that the developer has inserted, as they could add one that is far higher than normal without you realising.
3. Leasing of Your Property
If you are buying a block of land to build an investment property on in a large land estate, this clause may be of interest to you. Some estates have rules that prevent you from putting a for sale sign on your property or leasing without their consent. This is to protect the integrity of the estate but could cause problems for you depending on what you have planned for your property.
4. Design Guidelines
It is quite normal for land estates and developers to have a strict set of rules when it comes to the design of you home. This can include things such as the design of your façade, landscaping or the size of your house in relation to the block of land. Make sure you know what is expected of you before you sign the contract so you can still build your dream.
Purchasing your dream home is a big decision. You want to make sure you are correctly protected and understand your responsibilities so that you can meet them without any issues. Speaking to the team at Titlexchange is a great idea as they have fixed price contract review, which will leave you feeling confident when you sign the dotted line.
If you have already purchased land and still can’t seem to find the right house design, speak to one of our expert consultants who can help match you with the right builder or developer. You can call our consultants on 1800 184 284 or book a call online.
Let us do the legwork for you.
- We’ll ask the right questions to better understand your needs
- We’ll create a recommended shortlist ideally matched to you
- We’ll answer specific questions or concerns related to home building, land purchasing or financing
Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
1800 184 284
