We are looking at a piece of land being sold through deadline sale with the closing date in July. We have been told that the title won't be available for 2-3 months (it has been subdivided off a bigger block). I have asked the agent what covenants and easements there are on the property and have been told that they are waiting for the vendor's lawyer to write them up and they will send them through when they become available. . My questions are:
* Is it common to put a piece of property up for sale with a 1 month deadline sale but not to have information like covenants and easements available for prospective buyers. (To me it feels unprepared and for some reason the sale is being rushed.)
* What is the situation with title and settlement, ie can settlement only occur when the title is available or can it occur before hand. Is it usual not to settle until title is available?
* Are there any questions we should be asking the agent?
Thanks.

gennie - 2021-06-27 19:55:00

gennie wrote:

We are looking at a piece of land being sold through deadline sale with the closing date in July. We have been told that the title won't be available for 2-3 months (it has been subdivided off a bigger block). I have asked the agent what covenants and easements there are on the property and have been told that they are waiting for the vendor's lawyer to write them up and they will send them through when they become available. . My questions are:
* Is it common to put a piece of property up for sale with a 1 month deadline sale but not to have information like covenants and easements available for prospective buyers. (To me it feels unprepared and for some reason the sale is being rushed.)
* What is the situation with title and settlement, ie can settlement only occur when the title is available or can it occur before hand. Is it usual not to settle until title is available?
* Are there any questions we should be asking the agent?
Thanks.

go talk to your conveyancer you need your butt protected.

gabbysnana - 2021-06-27 19:58:00

This isn't exhaustive, but some points to start with:
- Until there is a title available, there is nothing to settle on. Title is only available when the subdivision is 100% complete.
- There should be some info on intended covenants / easements. Ask for copies of the subdivision consent decision with its associated conditions; and the consent application plan. Review them closely.
- But the final form of the intended documents will be those prepared by the solicitor.
- Check for yourself the likely time before title is issued. How far through is the subdivision process? Is it a single lot, or one of a larger development? How many of the consent conditions have been met? If there are physical works required (eg access, water, services, drainage), have these been completed? Has the legal survey been completed and approved as to survey? Any council approvals yet - s223 and/or 224c? Reserves or development contributions paid?

pico42 - 2021-06-27 21:10:00

Until title is issued you don't have to pay a deposit.

gamefisher - 2021-06-28 08:52:00

Thanks. Last night I was able to find the original application for the subdivision (it is 3 blocks of land) but can't find the approval of the subdivision on the council website so will be ringing the council later today to ask for a copy of this as well so we can see the conditions are imposed by the council in the approval. And will ask them why the title hasn't been issued yet/whether the s224c certificate has been issued so we can try to find out where the title is at. (We aren't in a hurry for the land so happy to wait however we also like to know exactly what is going on). Maybe there might be some questions we'll be asking the agent too to get some more information from the vendor.
Anything else?

gennie - 2021-06-28 09:07:00

gennie wrote:

We are looking at a piece of land being sold through deadline sale with the closing date in July. We have been told that the title won't be available for 2-3 months (it has been subdivided off a bigger block). I have asked the agent what covenants and easements there are on the property and have been told that they are waiting for the vendor's lawyer to write them up and they will send them through when they become available. . My questions are:
* Is it common to put a piece of property up for sale with a 1 month deadline sale but not to have information like covenants and easements available for prospective buyers. (To me it feels unprepared and for some reason the sale is being rushed.)
* What is the situation with title and settlement, ie can settlement only occur when the title is available or can it occur before hand. Is it usual not to settle until title is available?
* Are there any questions we should be asking the agent?
Thanks.

See pico's response and do not sign anything until you have seen your solicitor.

I have several concerns including timeframe and the covenants and easements. What if they are too restrictive and you have no right of requistion?

Edited by johnston at 11:03 am, Mon 28 Jun

johnston - 2021-06-28 11:03:00

Yes, that is why we have questioned the agent about what the covenants are. The properties sit between two roads, each has a water supply (though sewage will be septic tank) and we believe that the water must come from the road that the original lot is on (which is part of the subdivision and the vendors are keeping it) even though their access is from the other road, and that there will be an easement over the vendors property to get water to the new subdivided pieces of land. We also want to know as to whether the necessary ground works have been done to install the pipes on the vendors land to take them to the boundaries of the new subdivided pieces of land or whether that work has yet to be done.
The short time frame is concerning as we are trying to get an accurate picture of what is going on and hunting out information from the council, waiting for the vendor to provide the covenants to the agent etc is taking time. We can only really talk to a solicitor once we have all the information and with a 4 week deadline period it is going to be tight.

Still can't figure out what approach the vendor is taking for the tight timeline when all the information they should be providing to prospective purchasers (eg covenants) hasn't been provided - is it they need cash urgently so pushing for quick sale, or is it they are trying to create urgency and so hoping people won't look into the details so carefully, or are they concerned that property prices will bottom out and so trying to get a sale at the peak of the market.

Their original application for subdivision was made in March last year - don't know yet when it was granted, hoping council can tell us later today.

gennie - 2021-06-28 12:10:00

Still can't figure out what approach the vendor is taking for the tight timeline when all the information they should be providing to prospective purchasers (eg covenants) hasn't been provided - is it they need cash urgently so pushing for quick sale, or is it they are trying to create urgency and so hoping people won't look into the details so carefully, or are they concerned that property prices will bottom out and so trying to get a sale at the peak of the market.
[/quote]
????
A. They need cash urgently...

lovelurking - 2021-06-28 12:21:00

I think they would like some certainty, Nothing will happen until there is a title, you will be going through a lawyer so you need to be happy with any easements etc, they just want to know whats on the table so to speak. All good.

msigg - 2021-06-28 15:57:00