When you sign a contract of sale on your property, a settlement date is set. This is a legal process that confirms the official transfer of ownership.
Settlement of land involves a significant amount of paperwork and legal forms, including forms regarding stamp duty and GST. Settlement generally happens after you receive approval from your lender. The length of the settlement process can vary, though is generally 30, 60 or 90 days long.
The settlement of land often involves multiple parties. In Victoria, you’ll require a conveyancer or conveyancing solicitor to finalise the process and lodge the settlement. They will ensure all paperwork is prepared, and legal obligations are met. They will also work with you and your lender, or mortgage broker, to ensure your home loan has been approved along with the necessary documents organised.
Numerous things need to happen before the construction of your new home can begin. Some of these will happen before settlement, while others can only happen once settlement has been completed.
The building contract and developers approval need to be completed before land settlement. Before construction can commence, you need to get a building permit. Once you’ve received formal approval of your building permit, construction can generally begin after two weeks.
If you’re getting close to your settlement date, make sure you have your building permit sorted. This will help avoid any delays so your builder can get started with building your dream home as soon as possible.
During settlement, the purchase price is transferred, and documents are registered so the title reflects the change of land ownership. Stamp duty needs to be paid, as well as other fees including land transfer fee and mortgage registration.
Once titles are issued and the contract conditions are met with all legal documents finalised, settlement takes place.
The building process can begin once your land is settled, which is when you’ll finally start to see your dream home come to life. Though be aware that it may take a few weeks after you have settled on your land before construction can begin.
The time frame for building your new home will depend on the complexity of the design but generally takes between 4 - 6 months. Discuss with your builder beforehand about the timeline for construction, so you can plan for your move-in date.
The process of building your home takes time. If you start planning your home before settlement, it will make the process easier and will help get you in your new home quicker. Finalise the design with your builder and make sure you have discussed all the fittings and features you want your home to have. For some materials, your builder may need to order them well in advance to ensure they get delivered in time for construction.
Your builder will keep you updated on the progress and you can organise site visits during the construction to get a look at how it's progressing. Keep in mind that delays can occur, so the timeline may not always be strictly met, however, your builder will keep you updated with any delays to your construction and provide you with a revised completion date.
If you’re wanting to buy a block of land to build your dream home, house and land at Clyde North offers a great opportunity to build in a thriving neighbourhood. Contact the team at Perch about building your dream home.