Property Development Tip:1 : Read and Understand Contract of Sale/Attached Zoning Certificate

Property Development: TIP 1

When you buying any house with land component, it is important that you check the following: (just to list few)

· Zoning

· Any overlay

· Any Restrictive covenants

· Flood Zoning

· Fire Zoning

· Design overlay

· Special Contribution overlay

· Sewerage Diagram or

· Services running overhead /underground

· Any major native trees

· Adjoining Properties

· Abutting Properties

If you are not sure how to check above, your solicitor or conveyancer should be able to read it out to you from the Contract of sale.

At a recent seminar, when I asked those that attended if they normally ask above questions to their solicitors or conveyancer, I was shocked to see that only about 5 to 6 persons (out of 50 people) raised their hands.

Most investors shop around for cheaper conveyancer/solicitors, but neglect to ask simple questions.

If you are buying a house with Land components, we would strongly advise you to ask the above questions to solicitors/conveyancer. For detailed information, please consult or engage the local Town Planner/Architect/Draft person.

All in all it may cost you around $400-$800 for extra professional report/search!

It pays off to ask simple questions!

Example 1
We came across a client that bought property with intention of developing 3-4 townhouses on the block. He paid premium for site thinking that he can carry out intended development. The only problem was that the subject land had SINGLE DWELLING covenant. Ouch!!!!

Example 2.
A friend of mine picked up a property at bargain. He bragged on for months. The only thing he wasn’t aware that his property was on flood catchment area! Ouch!!!

This is gold!

I bet most of investors aren’t aware of KOALA HABITAT effect on your property!
Here is a detailed Read:
Frequently asked questions: What does the koala listing decision mean for me?

 

For NSW where do you find this information?

 

Nice post

I like the site you just picked up, safe, low risk in this market

MTR

 

And don't wait to get your conveyancer/lawyer to do that AFTER you have had your offer accepted. These checks must be done BEFORE you put your offer in, or during cooling off (if your state has that), or in a Subject To Due Diligence clause period.

 

Should be attached to the contract of sale along with the s.149 certificate.

 

All covenants should be on the title. Is it mandatory to supply all covenants to potential buyers?

 

It is mandatory to supply recent zoning certificate and copy of title.

This two documents are suffice to carry out due diligence!

 

Not in all states but does apply to NSW and maybe Vic as their sec32 is pretty comprehensive.

In WA you need to check zoning yourself, do dial before you dig to check services easements, get a copy of the title if not provided to check for title easements and covenants, consider getting a clause 42 certificate if the road is showing as a MRS road and subject to road widening easement, check with Council regarding overlays and any extra town planning scheme by laws that will prevent you doing your concept, consider the ANEF plane noise contours which may restrict development and lastly check your neighbour dwellings as sometimes if they are Heritage listed and you are not then there may be further restrictions by Council on the site to protect them

 

I had to double check my contract and s149 and the relevant environmental plan... Dual occupancy ; dwelling houses... No restrictive covenants... Phew.

 

If buying in WA,

Sight a copy of title
Get a recent copy of titles from Landgate
(Your settlement agent can do above)

latest version of general conditions ;

(condition 12) talks about swerage lines.

Other condition (cant think of conditiom number) mentions underground power requirement

Anyway, in nutshell

Contact water corp on 13 13 85
Contact western power on 13 13 51.

For Other things that myf mentioned, best to consult town planner or architect (@Aaron Sice ) for detailed Due Diligence.

 

thanks champ