Solicitor/conveyancing for land and house contract

Discussion in 'Property Management' started by innovatism, 16th Nov, 2019.

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  1. innovatism

    innovatism Well-Known Member

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    Hi All,

    I am looking to buy a land and going to build house(duplex) with a developer/builder package with locked in contract from builder that it will be completed by certain date. I need a solicitor/conveyancor for land contract first and It will be duplex build. I have found few solicitors online but price varies a lot from 1000 bucks to 2300 bucks. So my questions:
    1) Should I go for cheaper one and its really important and worth paying more
    2) Anyone have suggestions for good and affordable ones?
    3) I found "think conveyencing" which is for 1271 but has mixed reviews, and more bad than good so I am bit hesitant and my agent recommended JMH legal but it's more expensive and is 2300 for land contract. There is another one Gavel and pafe with 990 plus GST.
    4) What are the details I should look in land contract and build contractor.

    Please help.

    Thanks,
    Deepak
     
  2. thatbum

    thatbum Well-Known Member

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    What happens if they don't though? Is this something you've agreed in principle with them already?
     
  3. innovatism

    innovatism Well-Known Member

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    I am still waiting to get the contract but will be after land contract. That's what my buyer agent told me that they put certain conditions in build contract to make it locked and thats why I need a good solicitor in order to understand land contract followed by build contract.
     
  4. Lindsay_W

    Lindsay_W Well-Known Member

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    1) I've known people to use a cheaper conveyancer/solicitor and then find out that they were pretty useless when it came time for them to do their job
    3) Probably a good idea to use someone independent of the agent who sold you on the house and land idea,
    4) once you've found a solicitor they can help you with this but initially - what is the clause for if the builder doesn't finish in the time frame specified? What compensation will they give you?
     
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  5. thatbum

    thatbum Well-Known Member

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    Maybe slightly off topic, but are you saying you had a buyer's agent advise you to buy a duplex house and land package?
     
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  6. innovatism

    innovatism Well-Known Member

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    Yes, I am looking other options outside suggested by agent but till now, didnt find anyone with great reviews, the one I have mentioned have mixed reviews.
    Also, they said it ll be a decided amount per day if it gets delayed but again exact picture I would know once I will have the build contract in hand.
     
  7. Lindsay_W

    Lindsay_W Well-Known Member

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    This is a good question, why was house and land recommended over say, an existing property in the area?
     
  8. innovatism

    innovatism Well-Known Member

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    Yes it is , in a way. They found a developer and a builder for this with separate land contract and build contract.
    The reason why , my strategy is to build some equity as soon as it is built and it looks acheivable even market remains steady. ( if it goes down even independent house will go down). Only thing is, i dont want it to get delayed, land is already registered so the build can be started after council approval.
     
  9. Lindsay_W

    Lindsay_W Well-Known Member

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    Can I ask how you're going to 'build equity' after you've built a brand new property?
    If you buy an older house it's much easier to add equity via renovation or similar
     
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  10. thatbum

    thatbum Well-Known Member

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    Was this your idea, or theirs?

    I mean maybe I'm just being pessimistic, but you're essentially being a property developer at this point, which comes with a whole raft of risks and hurdles compared to just buying a good established IP.
     
  11. innovatism

    innovatism Well-Known Member

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    Yes I got your point, and agree there are risks involved as compared to buying built house but as I am after equity and as per calculations it looks acheivable with obvious risks involved which I am trying to mitigate and need a solicitor to understand things in details related to the contracts.
     
  12. innovatism

    innovatism Well-Known Member

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    As it is a duplex and in an area where houses can be rented out easily and combined value of 2 houses ( duplex) will be more than one house and more than I am planning to put in in building including land.
     
  13. Lindsay_W

    Lindsay_W Well-Known Member

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    Ok so, have you had a valuation completed for the duplex you intend to build yet?
     
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  14. innovatism

    innovatism Well-Known Member

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    Yes, my agent does that actually with few realstate agents and I have those reports.

    So is there any other way I can do valuation independently before it is built?
     
  15. Lindsay_W

    Lindsay_W Well-Known Member

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    If you're getting finance for the build the lender will complete a valuation for you, independent of the agent selling you this property.
    Typically any info real estate agents give you is going to be positive as they're trying to sell it to you, not exactly unbiased.
     
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  16. innovatism

    innovatism Well-Known Member

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    Thanks for the advice, indeed a good one, will check with my bank. But some banks valuate lower in certain areas, some do evaluate higher and sometimes realstate agents evaluation is more realistic as they use comparable sales in that area. How do you think to manage these things?
     
  17. Lindsay_W

    Lindsay_W Well-Known Member

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    I don't exactly agree with this, it sounds like salesman talk to me. The banks use independent valuation firms, most of these firms have a good grasp on the market, admittedly some don't always get it right but it's rare.
    They definitely use comparable sales.
    I would be wary of the agents valuation.
    If your bank valuation comes in lower than the price you're paying for the land and build I wouldn't proceed personally.
    At the end of the day it's the banks valuation that matters, if you want to get equity out in the future it's the bank who will conduct the valuation to see what equity is available in the property, they won't rely on the agent's valuation.
     
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  18. innovatism

    innovatism Well-Known Member

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    Yeah sounds right to me, thanks for the suggestion. I will ask few banks for the valuation first. :)

    Coming back to my original question, any suggestion on good solicitor?
     
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  19. My House QLD

    My House QLD Well-Known Member

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    Which city is the property in? Brisbane?
     
  20. innovatism

    innovatism Well-Known Member

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    Central coast.