A growing number of development sites are being offered with plans and licences already in place. This implies that the seller does the repairs, spends the monies, and waits the time necessary to get a Planning Permit for the property. A site with designs and permits is more appealing to a builder than one without since the building may begin much sooner. (As a side note, one of life’s certainties after death and taxes is that builders despise paperwork). When placing specific conditions in your contract of sale, however, there are at least three crucial points to do right.
You must ensure that the advantage of the plans and drawings that have been created for you may be assigned. In certain circumstances, engagement letters from architects stipulate that the assignment must be done with the architect’s approval and on his or her conditions. This exposes the buyer to a request for further costs. The solution is to make sure that if you sell a property with plans and permits, you have the authority to transfer a right to use the plans and drawings to the buyer.
If you’re needed to give specific drawings or authorised designs, be sure you know how long it will take and how much it will cost. For example, we recently had a scenario where the vendor was required to furnish certified drainage designs, which could only be done until the Planning Permit had been authorised. Several issues caused settlement to be months late. In the best-case scenario, you should also keep electronic and editable versions of CAD designs on hand in case they are needed. When a buyer decides to change architects, it is infamously difficult to get them. If you can supply electronic copies, you will save time and money for buyers while also potentially increasing the selling price.
If you are considering selling a site with plans and permits, let us help you get it right. Contact us today!