Buying a brand new unit from newly subdivided block -- but no title yet?

Hi Everyone,

Long time lurker and finally have the courage to post something :)

I am interested on a subdivided block. But when I approached the agent, he advised that even though the new units are complete, they are not yet titled. The vendor is still working with the council and probably will take another couple of months. I can however put my offer now.

This is puzzled me.. is it even possible to do this? To sell a subdivided block without the title? What will happen if for some reason the title is not available at the end?

I have looked at the section 32 and I can see building permit.. the plan of subdivision.. and occupancy permit. So everything seems to be there. Only there is not yet a title for each units.

And there's yet to be an Owner Corporation created so I don't know how much it will be.

All in all, even though I like this property, seems there are many questions around it.

Thank you for all the comments :D

Cheers,
Dream
 
Yes you can sell land even though the subdivision isn't complete. The subdivision takes time to complete because councils are notoriously slow/negligent/incompetent. But say the subdivision doesn't proceed for whatever reason - you will definitely get your money back so you should be fine.
 
ah I suppose this is similar with buying a house and land package where the land is still in the process of subdivision.

yes, the agent did say the vendor is asking for a long settlement period.. about 3 months I think.

i seen similar sunset clause in an OTP contract. if there is no such clause in the contract, can i add it myself?

probably something like "subject to registration of plan of subdivision within 60 days". not sure if this is something common to do.
 
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