Purchasing untitled land

If you are looking to build your dream home or purchase land as an investment, untitled land may be an affordable way and potentially work with your timing.  Read on to discover the benefits of purchasing before title and why it’s a smart idea.

WHAT IS A LAND TITLE?

A land title is a formal document that outlines who the land belongs to. To put it in simple terms, once land is titled and following receipt of reports associated with the nominated Lot and the signing of a building contract, you can begin building on that piece of land. 

WHAT IS TITLED LAND

Titled land is land with an official record of who owns it and is registered with the Land Registry. Untitled land is unregistered land that is sold prior to council registration and is typical of new estates or new land releases.  When buying a block of land that is untitled you will be required to sign a Contract of Sale with a developer who will develop and register the land on your behalf. You will usually need to pay a deposit equal to 10% of the land value.

BENEFITS OF PURCASING BEFORE TITLE

Titled land is getting hard to find. Untitled land is a great way to get your foot into the property market. 
Purchasing before land title may potentially mean that the land value at time of title may be more that was originally paid. Stamp duty is calculated on the contract amount, and land value increases significantly along with suburban development. 
After paying your initial deposit on untitled land, the remaining balance is not due until the land is registered and normally settled with the month of registration.

HOW LONG DOES THE TITLING PROCESS TAKE?

The titling process from deposit to registered usually takes anywhere between 6  – 18 months before the developers have completed the on-site works and registered the title