Small scale developer

Small-scale developments remain a popular investment option in Australia. These developments are an effective long-term strategy to seek better cash flows and capital growth, utilising existing property or purchasing land for a new development.   Whether you are seeking to develop a duplex on your current property, build multiple townhouses or subdivide property, SettleHub can provide expert advice to facilitate a prompt and smooth conveyancing process for your convenience. 

Woman with a contract

Small-scale Development Conveyancing  

Our small-scale developer conveyancing package includes assistance in each of the following stages of property development: 

Stage 1: Property Purchase  

  • Reviewing the section 32 statement (vendor statement)

  • Assisting you in making the most suitable purchase    

  • Carrying out all legal documentation adhering to all applicable regulations   

  • Communicating with all parties ensuring that they follow process   

Stage 2: Property Development Process  

  • Reviewing and drafting property development contracts with subcontractors and/or joint venturers if required 

Stage 3: Post-development Process  

  • Assist in lodging the sub-division applications  

  • Drafting the section 32 statement  

  • Communicating with the buyers’ conveyancers and planning the settlement   

  • Ensure property disposal in a legal manner   

We understand that committing to a property development journey can be rather daunting, however, our years of experience working with clients enables us to assist you to navigate the complexities of property law.

Advantages of Legal Advice  

In your property development journey, SettleHub can provide additional legal advisory services to maximise the benefits of the property development. These benefits may not be provided by other conveyancers (without a legal background) or those with extensive property development experience. Our services include: 

  1. Pre-site acquisition advisory  
  • Too often, we see small scale developers purchase sites that are not suitable for their development goals. Issues can include that the property has an easement which impedes on the plans, or the property has a restrictive covenant preventing multi-dwelling construction. 
  • Through our one-to-one consultations, we can help identify these risks and either advise on how to overcome them or provide a cost-benefit analysis on the site you are purchasing. 
  • We can also negotiate special conditions that allow you to carry out due diligence of the site. 
  1. Property Acquisition and Funding  
  • We will also provide you with independent legal advice on any private funding arrangements to finance the property development. 
  1. Joint Ventures in Property Development 
  • We can also provide legal advice in drafting contracts for joint ventures or syndicated developments. We can ensure that the client’s goals are reflected in the contracts and unitholders agreement to prevent legal issues arising during and/or post-development. Our expert advice can assist in enabling a smooth development process and reduce conflict. 
  1. Contract negotiations   
  • We can assist you to negotiate favorable terms with the Vendor. In purchasing high-value sites for development, clients often require private lending arrangements or longer settlement periods.  
  • Having a conveyancer who is conversant in such matters will assist you to secure the most favorable contract terms for yourself.  
  1. Smooth and swift settlement process 
  • We make your development journey hassle-free by ensuring smooth title transfers and swift operations. 

FAQs on Property Development

  • A restrictive covenant is a written agreement between two landowners to impose limitations on the use and development of one land, for the benefit or protection of another.  

  • Usually in property development, restrictive covenants are registered to impose restrictions on the use and development of subdivided lots in order to protect other property.

  • Private lenders are typically non-bank lenders who make loans outside the scope of the National Consumer Credit Protection Act 2009.  

  • This means that they may only lend to corporate entities and not natural individuals. Typically, these loans are for periods not exceeding 24 months and are provided for land development.  

  • Private lenders usually do not seek that the borrower proves their ability to service the loan, instead lenders assess the quality of the security provided and the ability for the borrower to sell the project and repay the loan.  

  • A syndicated development usually involves multiple investors who pool their joint finances into a unit trust and use the funds to purchase and develop land.  

  • The investors will then distribute the returns between themselves according to the contract or unitholders agreement. Property syndicates are often used in commercial and residential property development projects.

  • A unitholders agreement is similar to a shareholders agreement. These agreements are entered into by parties to a syndicated development to assist them in governing their relationship with each other.  

  • Unitholders agreements to a property development will usually include clauses appointing the builder for the construction, the lawyers, and accountants of the project. Clauses are also included governing the manner of the sale of the completed project and how to resolve any disputes that may arise between the parties.