Are you thinking of buying a rear strata block of land, if so, there are a few things that you need to take into consideration before you sign on the dotted line.
Are the services complete in accordance with the DA (Development Approval)?
Unfortunately, a lot of mum and dad developers have never done a subdivision before, they don’t get help from the professionals because like everything, you can ask Google and you will get the answers.
One of the problems with this, is that you, the purchaser of the land may find that the conditions of the planning or development application and approval have not been met, and you as the new owner will responsible for the conditions to be met and the costs.
In order for a shire planning approval and building permit to be issued, the conditions of the WAPC (West Australian Planning Commission) must be met.
These items can vary depending on the block of land and shire or local council requirements, from fencing, paving, landscaping, lighting and stormwater to the common area.
These items will be required for you to be able to build on the block, new sewer connection, water, power, and gas services run to your block, stormwater, and or paving may not have been run to your block.
These items may be on site, but not necessarily run to the rear block to be connected for your home.
Unless you know that these items have been completed before you put an offer and acceptance on a block of land and it has settled beforehand, you will have to pay to have these items completed before you finish your home.
Depending on the distance from the front property or where the services have been left, you may be up for substantial costs to bring the services to your property, for example, a power run with standard power cable can only be run to a maximum of 30 lineal mtrs, after that distance the cable must be upgraded.
If the services have been left on the opposite side of the driveway where you need to have the services run to, you may have to bring those services across the front of the property and possibly under walls and fences.
As part of your building permit, if common areas have not been completed by the developer before the titles have been issued, you may be up for the additional cost of completing some items, eg the paving of the driveway to your home and the associated stormwater in the driveway.
What can you do if the services are not complete?
There are a couple of things you can do when you put an offer and acceptance on a block of land,
- one of the conditions that should be added to your offer is that the offer should be subject to all the WAPC conditions on the Development approval to have been met prior to settlement.
- The offer should also be subject to you receiving a copy of the planning conditions, along with the associated approvals, so that you can determine that the items have been completed.
Once the block has settled, you will have no comeback even if the items haven’t been done as the land has been settled.