Hi all,
I'm a total beginner, not yet in the game. I've read a few recommendations about buying property with long settlement dates then negotiating early access – the strategy being to start work immediately and increase the value of the property even before settlement.
But does the vendor have an option to withdraw prior to settlement?
What of subdividing? If I bought a property intending to subdivide the land, if there's a long settlement in place can I start the subdivision process before settlement?
Thanks for help and opinion. Teroid
That would be something you stipulate in your contract with your solicitor. If it’s unconditional the vendor cannot withdraw.
Subdividing can be a lengthy process , 6 – 12 months or longer. You can definitely start the process prior to settlement. Surveyors will need access to the property for one day.
Hope that helps.
The vendor owns the property until title is passed to the purchaser up until that point your name is not on the title as owner although your solicitor may have placed a caveat on the property.
If you are going to undertake a subdivision, it shouldn't be completed before ownership is transferred to the purchaser. BY all means, submit your DA (which needs the owners consent) however you will be contracting to buy 1 property not 2, so your contract for sale of Block A may not be a valid contract for the purchase of block B & C even though it was the same parcel of land. The vendor may not have wanted all of the work involved in getting the subdivision done, so you don't want to give them any excuse to complete the works should you fail to settle.
Thanks guys. That's very helpful. T
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