Separate land contract for OTP-Special Condition

Discussion in 'Legal Issues' started by radioactive, 10th Oct, 2019.

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  1. radioactive

    radioactive Well-Known Member

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    Perth
    Hello All Legal Folks

    I would appreciate if you can advise a bit here.
    I am thinking of placing EOI on buying OTP dual nras package in WA.
    The developer discussed with me about the land sale but we have only briefly discussed about building plan.He is insisting that there are other buyers awaiting for the land,so I should quickly put offer on land first and within 2 days he will get the plans done for the project.I am getting bit skeptical as he wants to get the land sold first and then he can have upper hand on build which is yet to be discussed in detail.(although he has quoted a turnkey price)

    So I am thinking of including below two clauses in the contract.

    Subject to Dual NRAS Allocation

    The seller agrees to do necessary formalities and source two (2) NRAS allocations. If the allocations are not available at the contract stage then seller may present a pre-approval to buyer.


    Subject to compliance

    This contract is subject to and conditional upon:

    1. The seller obtaining necessary approvals and design compliance from Local & NRAS authorities to build a dual occupancy home.

    2. Successful exchange of building & construction contract between the buyer & seller by 20th October 2019.

    I would appreciate if you can provide some feedback.

    Thanks in advance.
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Buying the land separately saves you stamp duty costs.
     
  3. thatbum

    thatbum Well-Known Member

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    There's really not enough information to be able to comment much. Do you have a conveyancing lawyer acting for you? Who's drafting the clauses exactly? Hopefully them!
     
  4. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Strange it is a new build NRAS after so long. Is the NRAS a certainty ?
    NRAS allocations were made years back (ALP era) and its rare and strange to find it available. Have lawyers check this as it seems strange NRAS is allocated to land. NRAS applies to a dwelling approval.
     
  5. radioactive

    radioactive Well-Known Member

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    As of now i have drafted the condition
     
  6. radioactive

    radioactive Well-Known Member

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    Yeah thats why i have mentioned about pre approval
     
  7. radioactive

    radioactive Well-Known Member

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    Oh ok.Nice to know that.
     
  8. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I think its a important legal issue to explore now. Not on conditions you draft. Fairly important issue. The contract is for land and buildings on the land. You cant likely bring into the contract things beyond scope of the offer. You say "approval" but its likely the vendor cant give you that as they cant give approval and so any condition could be unenforceable. They cant sell what they dont have. Its not same as a lot which comes with a DA. The DA may be already approved.

    A solicitor may be quite explicit in the wording of the conditions. Dont do your own legal work - You may get the value of what you have paid. Nothing.
     

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