If you are thinking about buying land, it is worth educating yourself about the land sale process so once you find that perfect block you are ready to buy. We give our overview of the land sale process in 10 Steps. Lanser Sales Representatives will be available to help you throughout this process.
Securing pre-approval is the first step you should take. Once you know approximately how much you can borrow, you can make sure your purchase falls within the price range. Pre-approval is an indication from the bank as to how much you can borrow, keep in mind this expires and may need to be renewed.
Sign the Contract of Sale
Generally speaking the contract of sale outlines the terms and conditions of the sale including, the price, deposit amount, description of the property and settlement period. The contract will also outlay whether the offer is conditional (requiring specific conditions on which the sale relies) or an unconditional offer.
Following agreement from both parties on both prices and conditions – both the purchaser and seller sign the contract of sale document.
Pay the Deposit
A deposit on the sale is required and will be held in a trust account inaccessible by the developer until the settlement date.
If you purchase a block of land you’re entitled to a cooling off period, unless you bought it at, or on the day of, an auction.
The cooling off period is usually two business days from either the date you signed the contract of sale or received a copy of the vendor’s statement. During this time you can withdraw from the sale without being legally vulnerable.
Find a Conveyancer
You will need to appoint a conveyancer who will handle the paperwork involved with your purchase acting as your settlement agent. Ensure that your conveyances are aware of any terms and conditions of the sale.
Finalise Loan Approval
You will need to formalize and sign all your mortgage documents. Your bank’s lender or mortgage broker will guide you through this process.
Sign a transfer of land document
You will be asked to sign a memorandum of transfer document to transfer the certificate of title from the seller’s name into the buyers. The document is then registered with the Land Titles Office by the seller or developer so the property can be formally transferred into your name.
Register the land title
This is an official record of ownership of the land and is kept by the Land Titles Office your conveyancer will do this on your behalf.
Now that everything is registered, settlement takes place, the mortgage becomes active and the land is yours!