Vendor selling 480m block of land requiring purchaser to do subdivision?

[RobynD]

Hi everyone

We are currently looking for a block of land to build on in the Northern suburbs of Brisbane.

We have found a 480m, level block at a great price for the location. However, the reason it is being sold at such a good price is because the Vendor is requiring the purchaser to do the subdivision themselves and pay all costs of this.

We have no idea about what subdivision entails and are quite hesitant because of this. I have looked at the BCC website but I cannot understand it at all!

However, I do understand this sentence "Before a new lot can be sold, it has to be created and its title registered." http://www.brisbane.qld.gov.au/plan...ts/residential-projects/subdivision/index.htm

Anyway, my question is this: does anyone know if this is a requirement in legislation or council codes anywhere? I.e. is it legal for a Vendor to sell a 'block' before creating a title for that block?

I am thinking about trying to negotiate for the Vendor to do it and we pay a higher price, just so we can get out of the deal if there is a problem with council approval, and so that, at settlement, we can actually get the title (well the bank can).

Thankyou!

 

[RumpledElf]

Geez ... subdivision takes ages too. You'd need a crazy long settlement.

One of the vacant lots I'm eyeing off has the same caveat - sell as one lot or can be subdivided and sold individually (its 3 alotments on one title so a much simpler task to subdivide). This will still cost rather a few thousand in survey, lands titles fees and water connections but I think it dodges the council contribution costs.

Its a way for a vendor without the income/savings to pay for the subdivision to sell of only part of their land without paying for it themselves. If it really is a bargain and you're willing to wait and can get the contract watertight conditional to a completed subdivision in the timeframe, go for it.

A good surveyor in your local area will be able to do it all for you, you don't need to be able to understand all the jargon and process yourself. Their initial report might cost a little but would be worth it to know that you really can subdivide the block. If you get lucky, you might even be able to get the whole process done in less than 6 months, but don't count on it, it depends how often the council meets to rubberstamp these things.