22 Jun 2016
Probably the single most important clause you can put into a sale and purchase agreement for land.
You would need alot of information on the site not to put one in your offer to purchase. Even then still put it in to give yourself time to check through the information or have a specialist check it for you. Not all land is created equal even within the same subdivision or adjoining lot. Geotech reports, topographical surveys, services contections, flexibility of design and covenants are all things that need to be investigated to establish the real cost to build what you want on that special piece of dirt.
At KEY2 we help people work through a due diligence process that will discover the true likely cost to build rather than adopting a very simplistic base price of a house plan plus land price equals cost. From our experience that is far from the true picture and typically 20-30% or more needs to be added to the quoted build price, even with a near perfect building site. Fortunately the land we sell at KEY2 allows for a period of due diligence. Frankly as licenced real estate agents we would not let you proceed with a contract without confirming that a good level of due diligence had been carried out.
If you are considering purchasing a site that we haven't introduced you to, still feel free to contact me and I will get one of our team to check your due diligence process to make sure you are covering all the bases you need to.