Development approval ownership.

I'd agree with Terry, the vendor has signed the DA, the DA relates to a specific site and cannot be separated  from that site. As you have done the hard work, it is your risk that if you can't settle you don't get any benefit (unless you have a claw-back clause

or maybe the copyright to the plans would remain with the draftsman.

I’m not an expert, but if there was nothing in writing stating that if you didn’t exercise your option to buy, that the owner would pay your costs, I don’t think you have a case.

It would be like entering into a long settlement contract to buy an old run down house, spending money to improve the value of it, but if you never settled, you would have no recourse to claim for the improvements.

There was an opportunity to take advantage of your option to purchase and make money on it, just by lining up another buyer to settle on the same day that you had to. You missed that window of opportunity.

I am no expert either, so I asked a developer friend and he said the DA goes with the land and the ownership of plans etc are usually retained by the draftsman – unless you have a specific agreement otherwise with them

If you don't settle then the next owner with 'have' the DA available to them but will have to do the plans again or go back to the same draftsman and get a reduced rate for redoing the same plans.

I'm just a dummy around Council matters, but I reckon from a logical point of view, if you don't own the property then the DA is worthless, isn't it ? So unless you own the property, it's a moot point.
Cheers
thecrest

Classic case of why you should negotiate a longer settlement under option or development agreement subject to DA/finance etc. If you don't get the DA etc, don't settle. The DA stays with the land. Vendor owns it. You don't. If you don't have anything in writing that says vendor will reconcile DA costs (but ask yourself why would they, the settlement or sale would've been contingent upon YOU getting the DA) then thats your risk and if you cant' settle.. well… you lose. They're under no obligation at all to pay you anything. The approval (assuming its now obtained) then 'justifies' the increase in price. Thats the strategy – get raw land, add DA, onsell for profit. The DA itself isn't something you can sell as a seperate entity. It and the land become 'one' once the paperwork is issued. Sorry to burst your bubble.

I dont' mean to sound harsh and its not my intent to vilify, I'm simply pointing out, thats the risk you take and prior preparation and planning is KEY before entering into any binding agreements with a vendor.

Brilliant case for finding a good property lawyer prior to entering into any deals and having your paperwork, due dilligence and finance options ready and waiting ….