Browse Forums Building A New House 1 Apr 16, 2009 6:41 pm Hi, I have read the previous thread about taking your solicitor's advice regarding land contracts and am in a similar situation. My contract states that the developers can take up to four years and six months to have the land titled. We have been told it will be titled at the end of September. We need to start building this year. We have pretty much decided to take our solicitor's advice that this is too much of a risk. The longer we take to build the more we have to pay our builders for delayed building start date (we will sign a building contract now as well to get the FHBG). Is this a standard clause in these new estates? The land is Stage 1, Karinya, Point Cook. What would you do? Re: Risky clause in land contract? 3Apr 16, 2009 7:55 pm Our sunset clause is 18 months from the date of formation of the contract. Why dont you speak to the solicitor about changing the clause? Im sure you must be able to do that. I know we added in clauses to our land contract before signing, for things like soil test results etc. If the seller signs and agrees to it then your all good! Re: Risky clause in land contract? 4Apr 16, 2009 8:00 pm I am buying land that is expected to be titled in September too, but it's in Renaissance Rise in Mernda, Victoria. In these situations, someone has to take the risk. Is it you, the vendor or another person who wants to buy the land? If there's a lot of demand then the vendor will hold out and make you take more risk, because they can always find another sucker. If no-one else wants the land then you can force them to take the risk in order to make a sale. Given the other land available in the area, I decided to accept the risks and buy the land anyway, because I want that block. If I didn't buy then I was taking on another risk, which is the risk of not getting suitable land. Metricon Riva 33 - http://herlihy-riva.blogspot.com Site start 15/03/2010 - Handover 23/12/2010 9 months and 8 days (284 calendar days) from site start to handover Re: Risky clause in land contract? 5Apr 16, 2009 9:46 pm We know all about delays also with land titling as we have just finally gained title. Our Sunset clause was 18 months of which we used 10 months of these. We were starting to worry ourselves. First thing I can't figure is how you can sign a building contract when you are not practically owners of the land, although I have seen others on here also do the same. Second, it may be wise not to sign a contract or at least sign and put in place "subject to title on land" in the housing contract just in case. The big trick with many ppl on their land titling and they have builders waiting is the fact also the builders are waiting each few months to push the prices up. Built 36sq Plantation "Retreat" on 4460m2 at Spring Mountain, Qld In Living and landscaping.. >>> ... http://retreatspring.blogspot.com Re: Risky clause in land contract? 6Apr 17, 2009 7:30 am Similar Issue with us... We signed a contract 19 months ago, for land that should title within 18 months.... I specificially put in the special clause that if the land wasn't titled at the end of this period, that we had the right to re-enter a new contract at the current contract price... My fears were that if the developer gets to 16 months, he could quite easily delay the title issue, until after the 18 month period, in effect nulling our previous contract and allowing him to put it back on the market for more money! As it is we have just signed the new contract, and basically saved ourselves $80,000!!! Electrical Engineer... Don't hold that against me... And keen owner builder... Mainly the building part!! Unless there is something in special conditions the builder does not have to give you timeline. If your demolition contractor has not removed Asbestos and it was found… 12 28801 You talk about deletions, are they variations or PS and PC adjustments? pleas list them 1 16563 It seems very clear to me that your contract states that a security account does NOT need to be established so the answer to the builder is NO. If in doubt find a contract… 1 8510 |