Land Releases Southern Highlands and Wollondilly

If the lot is unregistered, the developer will usually request a holding deposit, which is typically 0.25% of the purchase price and is non-refundable. After making this payment, it is essential to notify the developer of your chosen lawyer or conveyancer, as they will facilitate the next steps of the transaction. The developer will then issue a sales advice to your legal representative, allowing them to review the necessary documents and begin preparing for the contract exchange.

Once the sales advice has been received, we will obtain a copy of the Contract for Sale of Land from the developer’s solicitor for review. This is a critical stage where we thoroughly examine the contract, including its terms, conditions, and any special clauses, and provide you with legal advice tailored to your specific piece of land. Additionally, we will discuss any easements, zoning regulations, or building restrictions that may apply to your lot, ensuring that you fully understand the obligations and limitations before proceeding further.

An easement is a legal right that allows a third party, such as a neighbouring property owner or a service provider, to access or use a specific portion of your land for a designated purpose. Common easements in new developments include drainage easements, which permit water or sewerage infrastructure to pass through a section of your property, and access easements, which may allow neighbouring properties to share a driveway. It is important to understand the nature and impact of any easements on your land, as they may restrict the way you can develop or use the property.

The deposit is generally paid to the developer or their agent at the time of exchanging contracts, which formalises your commitment to the purchase. For unregistered land, the deposit is typically 5% of the purchase price, while for registered land with an expected settlement within six weeks, the deposit is usually 10%. If paying the full 10% deposit upfront is not feasible, we may be able to negotiate a lower deposit of 5% on your behalf, depending on the developer’s policies and contract conditions.

If you do not have immediate access to the required deposit, you may be able to exchange contracts using a deposit bond, which serves as a financial guarantee rather than an upfront cash payment. Deposit bonds are often used when buyers are waiting for funds to be released from another property sale or investment and are accepted by many developers and agents. Please contact us to discuss your situation, and we can connect you with reputable deposit bond providers that we have successfully worked with in the past.

When purchasing unregistered land, the contract will usually include a sunset date, which is the deadline by which the developer must complete the subdivision and register the land. This period can range from several months to a few years, and it is essential to understand the expected timeline by consulting with the developer or agent before committing to the purchase. If the developer does not meet the sunset date, you may have the option to rescind the contract and recover your deposit, though in some cases, extensions can be negotiated if both parties agree.

No, most banks will not provide unconditional loan approval until the land has been registered and they are able to conduct a formal valuation of the block. However, it is advisable to obtain pre-approval or an estimate of your borrowing capacity before exchanging contracts to ensure that you are in a strong financial position when it comes time to settle. Understanding your loan eligibility in advance will help you avoid unexpected issues and provide confidence in your ability to secure financing when required.

If you purchase an unregistered block of land, stamp duty must be paid within three months of the contract exchange, which means you may need to allocate funds for this expense well before you receive loan approval. This upfront payment can be a significant financial commitment, and buyers should plan accordingly to ensure they meet their obligations on time. For registered land, stamp duty is generally payable at settlement, aligning with the finalisation of your purchase and making it easier to incorporate into your overall financing plan.

Under the First Home Buyers Assistance Scheme, which was revised as of 1 August 2021, eligible first-home buyers may be entitled to a full exemption or concessional rate on transfer duty, depending on the value of the land. If the land is valued at less than $350,000, you may qualify for a full exemption, meaning you will not need to pay any transfer duty. For land valued between $350,000 and $450,000, a concessional rate of duty applies, reducing the overall cost of your purchase, and we can assist you in understanding and applying for these benefits.