August 25 2016
A property lawyer can help you ensure you are signing an appropriate agreement. If you’re thinking about purchasing a section, be aware of the time and cost involved to get services connected: gas, power, phone, internet, ultra fast fibre (UFF), water and sewage. A good developer will factor connecting services into a plan, but not all developers are so diligent.
Here’s the reason to be wary. Any problem with connecting services can result in delays and increased costs for the developer, who may look to pass them on to a purchaser. For example, UFF often requires under-boring, the cost of copper phone wires is high, you may not be getting a traditional ‘phone’ (it may be linked to UFF) and adding houses requiring power to the grid may overload the current transformer which may need an upgrade.
Always check the status of the services, and when and how they’ll be connected. If you’re presented with an agreement with a warranty that they will be connected, ask for a condition instead. A warranty allows you a right to be compensated after the fact. A condition can allow you to terminate the agreement if the condition isn’t met.
If you’re thinking about buying a section, speak to our property lawyers before you sign anything.