Legals regarding unregistered land.
- Thread starter ej89
- Start date
10% of what to what purpose? I have no idea what you're on about with this one.
Why would the buyer be paying legal costs for the vendor?
What title is the vendor going to give you at settlement if they have not undertaken the subdivision? If they have subdivided, it is all done an dusted they can sell the new blocks with their new title documentation.
Why would the buyer be paying legal costs for the vendor?
What title is the vendor going to give you at settlement if they have not undertaken the subdivision? If they have subdivided, it is all done an dusted they can sell the new blocks with their new title documentation.
Hi,
Just for clarification it is not the law in Victoria that a developer can vary the size of a lot by 10% in an unregistered plan of subdivision. Section 9AC of the Sale Of Land Act allows changes unless it 'materially affects' the purchaser.
The 10% is just a "rule of thumb" and is defiantly not the law.
Just for clarification it is not the law in Victoria that a developer can vary the size of a lot by 10% in an unregistered plan of subdivision. Section 9AC of the Sale Of Land Act allows changes unless it 'materially affects' the purchaser.
The 10% is just a "rule of thumb" and is defiantly not the law.
10% of what to what purpose? I have no idea what you're on about with this one.
Why would the buyer be paying legal costs for the vendor?
What title is the vendor going to give you at settlement if they have not undertaken the subdivision? If they have subdivided, it is all done an dusted they can sell the new blocks with their new title documentation.
What I'm saying is that I heard in VIC that if the developer sells a lot for e.g. 300k, the maximum deposit they can take on exchange of contract is 10% of that 300k IF that land is unregistered. I was wondering if there is something like that in NSW?
Hi,
Sorry I misread your post. A developer can ask for up to a 10% deposit of the sale price of unregistered land. The deposit cannot be released to the developer until the plan is registered. Because most contracts require settlement within 14 days of the plan being registered it is very unusual for a developer to ask for the early release of the deposit (S127 of the Sale of Land Act) after plan registration and before settlement.
Sorry I misread your post. A developer can ask for up to a 10% deposit of the sale price of unregistered land. The deposit cannot be released to the developer until the plan is registered. Because most contracts require settlement within 14 days of the plan being registered it is very unusual for a developer to ask for the early release of the deposit (S127 of the Sale of Land Act) after plan registration and before settlement.
Thanks. What does it mean by "materially affects" the purchaser?
Do you know if the same thing applies to NSW? I have a developer who wants to sell me a block of unregistered land and pay 16%. He also wants to be able to use the funds for another purchase before settlement which may be in mid 2016.
