The main difference between land with a title, and land that is untitled, is when the land can be built on.

Titled Land has been given a street address and a Certificate of Title. This means you can purchase the land straight away, through cash or finance. You may also begin building on the land, if that is your goal.

Untitled Land may have a Lot Address such as Lot 19, PreApproval Street, but unfortunately this land cannot yet have any property construction on it.

Untitled Land has not yet had final council approvals and registrations. An untitled block may be sold, with a contract of sale, but finance cannot be finalised until it has been titled.

Sometimes it can take months, or even years before it is ready for council approvals.

If you are looking to buy a block of land, and it is not yet titled, some builders or land agents will ask for a deposit, to secure the land.  Some will ask for a 10% deposit.

What are the benefits of buying Untitled Land?

✅ It may be much cheaper to buy land separately, and then source your own builder. An established property incurs the cost of full Stamp Duty. Buying land and building, means you pay no Stamp Duty on the price of the build. If you are a First Home Buyer, you may be exempt from paying any Stamp Duty when building.

✅ From the day of signing the contract, to the day you can own the block, the land may have increased in price.

✅ You can source your own builder, and choose a home plan right for you. Opposed to buying a house that is already established,

What are the risks of buying Untitled Land?

If you are signing a contract to purchase land, please speak with a Conveyancer to understand your legal obligations with signing a contract. A Contract of Sale, Subject to Finance, may have different legal obligations to an Unconditional Contract of Sale.

🏠 If you are paying a deposit to secure land that is not available for title for 12 -18 months, you need to make sure your deposit is protected if you are no longer eligible for finance when the land finally becomes titled. Imagine if you pay a $20,000 deposit to secure land, and it ends up that you can’t get finance approved and the builder is legally allowed to keep your deposit.

🏠 The developers subdivision plans may not get the council approval that they planned on getting

🏠 If significant time has elapsed and the price of the land has significantly risen, some builders may cancel the contract (Sunset Clause). If they can get a higher sale price by selling it to someone else.