Why You Need a Great Conveyancer When Buying Land

1st April 2024

Finance & Budgeting Pre-Construction Legal & Contracts

This article breaks down why a great conveyancer is essential when buying land or building a new home. It covers what conveyancers do, why timing matters, and how they help you avoid costly mistakes. A must-read for anyone navigating off-the-plan or titled land purchases.

Why You Need a Great Conveyancer When Buying Land or Building a New Home

Buying land or building a new home is a major milestone, and getting it right starts with the right support. In this episode of the Home Building Hub Podcast, Colin Bischof and Darren Brennan sit down with Justine Kitchen and Cally Gooch from Fastrack Conveyancing to uncover why having a great conveyancer can make all the difference to your property journey.

What is a Conveyancer?

A conveyancer is a property legal professional responsible for handling the legal side of transferring land or property ownership. They:

• Review and interpret land contracts

• Advise on key conditions like zoning, restrictions, or sunset clauses

• Handle settlement via online platforms such as PEXA

• Ensure you meet legal requirements, including stamp duty and FIRB obligations

Conveyancers are vital when purchasing titled land, off-the-plan properties, or nomination blocks.

Why You Need a Conveyancer Before You Sign Anything

One of the biggest takeaways from this episode is simple: never sign a land contract before a conveyancer has reviewed it. Here's why:

• They check for risks in nomination and standard contracts

• They flag land tax liabilities, sunset clauses, or site restrictions

• They ensure you’re eligible for grants or concessions (e.g. First Home Buyer)

What Does a Good Conveyancer Do?

A strong conveyancer doesn’t just handle paperwork. They:

• Offer fixed pricing and transparency on fees

• Provide same-day (or close to) contract reviews where possible

• Keep you informed and reduce stress with proactive communication

• Handle all settlement processes including shortfall funds and statement of adjustments

How Much Does Conveyancing Cost?

• Established purchase or sale: $900 to $1,500

• Land purchase: $1,200 to $2,500

• Most reputable conveyancers offer fixed pricing

Off-the-Plan vs Titled Land: What’s the Difference?

• Titled Land: Ready to build on straight away

• Off-the-Plan Land: Still being developed and may not title for 12–18+ months

With off-the-plan purchases, you need to:

• Be aware of the sunset clause

• Understand potential delays

• Know your rights if titles or land sizes change

Nominations and Contract Flexibility

If circumstances change, a buyer may be able to nominate someone else to take over the contract. Key points:

• Nominations are legal and common but may have restrictions

• Developers may limit nominations to family or owner-occupiers

• You can buy nomination land at original contract prices, often at a discount

Settlement Explained

Settlement is when the property title is legally transferred to the buyer and final payments are made. Your conveyancer will:

• Prepare the Statement of Adjustments (rates, taxes, fees)

• Manage shortfall payments not covered by your bank loan

• Coordinate with PEXA for online settlement

Land Tax Change: What Buyers Need to Know

• Contracts signed after 1 January 2024 can no longer pass land tax onto buyers

• If you are taking over a nomination block from an older contract, land tax still applies

Tips for a Smooth Conveyancing Process

• Talk to your conveyancer and builder before signing anything

• Make sure your land suits your home design and lifestyle goals

• Research the developer and estate reputation

• If buying as a foreign investor, ensure you obtain FIRB approval first

Key Takeaways

• Engage a conveyancer before you sign any contract

• A good conveyancer will save you time, money and stress

• Titled and off-the-plan purchases involve very different risks

• PEXA makes online settlements more efficient

• Don’t get caught out by sunset clauses or land tax

• Nominations can be helpful but come with conditions

Listen to the full episode here: https://homebuildinghub.com.au/posts/ep-45/

Glossary of Terms

• Conveyancer: A legal professional specialising in property title transfers

• PEXA: Online platform used for settlements in Australia

• Sunset Clause: Contract clause allowing termination if land does not title by a certain date

• Nomination: Legal process where a buyer nominates another person to take over their contract

• Statement of Adjustments: A breakdown of shared costs and fees at settlement

• Shortfall Funds: The amount a buyer pays on top of their loan at settlement

• FIRB: Foreign Investment Review Board, required approval for some non-residents

Frequently Asked Questions

Q: Can a conveyancer review my building contract? A: No, only lawyers can provide legal advice on building contracts.

Q: Is it safe to buy land through a nomination? A: Yes, but always review the contract carefully. Some developers limit nomination rights.

Q: What if I signed a contract before 1 Jan 2024? A: You may still be liable for land tax, especially on off-the-plan contracts.

About the Home Building Hub Podcast The Home Building Hub podcast, hosted by industry experts Colin Bischof and Darren Brennan, is Australia’s premier resource for new home buyers. With weekly episodes featuring special guests, the podcast provides objective, high-quality insights into the home building process - completely free and without sales pitches. From understanding financing options to navigating the complexities of building a new home, each episode is packed with actionable advice and tips. Explore more episodes at http://www.homebuildinghub.com.au and join our growing community of informed home buyers.

Disclaimer Whilst we’re all about providing value to you, this article should not be considered as legal or financial advice. It contains general information only and is based on the content discussed during the podcast episode. This information is relevant to the episode’s release date and may not be applicable at the time of reading. Always seek independent professional advice tailored to your personal situation before making any legal or financial decisions.