Why You Need a Conveyancer for House and Land Packages in NSW
5th September 2024
When purchasing a house and land package in New South Wales (NSW), having a conveyancer is vital for navigating the complexities of the process. Unlike buying an existing property, acquiring a house and land package presents unique challenges that require expert handling. Here’s why a conveyancer is indispensable in this scenario.
The House and Land Package Process
1. Get Pre-Approval
Just like buying an existing home, the journey begins with securing pre-approval from a lender. Typically, this involves obtaining two loans: one for the land and another for the construction, often bundled into a fixed-price loan. Engaging a conveyancer early ensures that all legal aspects are thoroughly addressed before you commit to a house and land package.
2. Find Your House and Land Specialist
Once pre-approved and with a conveyancer on your team, you will need to find a house and land specialist. Choose a specialist with a diverse inventory to find the ideal package that suits your budget and preferences. Your conveyancer will assist in reviewing the options and ensuring that the contracts are fair and transparent.
3. Pay a Non-Refundable Reservation Fee
To secure your chosen package, you will pay a reservation fee, typically ranging from $500 to $5000. This fee ensures that no other purchasers can acquire the land while you finalise your decision.
4. Pay a Deposit and Finalise the Contract
After paying the reservation fee, you will typically need to pay a deposit on the property. This is often around 10%. You will then need to sign the contract for the property. Depending on the terms of the contract, there may or may not be a cooling-off period. An unconditional contract means it is legally binding from the moment of signing. Your conveyancer will help you understand the contract terms and ensure that all legal requirements are met.
5. Pay the Remaining Cost and Settle
Upon practical completion of the home, you will need to pay the remaining costs and settle the amount as specified in the agreement. Your conveyancer will oversee this final stage, ensuring that all settlement procedures are correctly followed.
Differences Between Conveyancing for Established Properties vs. New Builds
Conveyancing for Established Properties:
- Simpler Transactions: Typically involves a single contract for the sale of the property. Purchasers can inspect the property beforehand, and the transaction proceeds based on an existing agreement.
- Inspection and Valuation: Purchasers often have access to a building and pest inspection report, which helps in making an informed decision.
- Less Complexity: The process is generally less complicated with fewer legal and administrative steps compared to new builds, as there are no construction contracts or ongoing development issues to manage.
Conveyancing for New Builds:
- Two Separate Contracts: This process requires managing one contract for purchasing the land and another for the construction of the home, each with its own terms and conditions.
- Complex Legal and Administrative Steps: Involves obtaining permits, complying with council regulations, and handling construction-related issues, adding layers of complexity.
- Customisation and Development: Purchasers must manage building specifications, timelines, and potential changes during construction, which further complicates the process.
Read more on NSW Fair Trading for guidelines on property transactions, including contracts and builder regulations.
Conveyancing for new builds can be more complex due to the dual contracts, compliance with building regulations, and the involvement of multiple parties. Bangalow Conveyancing will ensure that both contracts align and that all legal requirements are met. If you have any questions regarding house and land packages, do not hesitate to reach out on (02) 6687 0548.
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