When you’re purchasing a house and land package, understanding the language that is used throughout the process can help make more informed and confident decisions.

Here is a breakdown of the most common property and construction terms you’ll come across during the purchase of land or property.

Building Permit

A building permit is written legal approval from a registered building surveyor that allows you to construct, alter, or demolish a pre-existing building. You need it to ensure your project complies with building regulations, requirements and laws. Construction cannot legally commence until a building permit has been issued.

Off the Plan

Buying ‘off the plan’ means purchasing land or property before construction has been completed, or sometimes before it has even begun. Buyers commit to the purchase based on floor plans, designs, specifications, and proposed layouts rather than the final product. 

Purchasing off the plan can provide more time to prepare financially and may offer opportunities to secure the current price before completion and other competition. 

Pre-Approval

Pre-approval is the initial assessment from a lender that indicates how much you may be able to borrow to purchase your land and build your home.

It gives you an understanding of your borrowing capacity before you commit to purchasing at Oak Grove, and typically involves reviewing your income and employment situation, savings and deposit amount, existing debts and financial commitments, living expenses, and credit history.

Valuation

A valuation is an assessment conducted by an independent property valuer to determine the market value of the house and land package before a lender approves your loan.

The valuation helps the lender confirm that the property is worth the amount they are lending against it and reduces their financial risk. This usually considers the value of the land, the proposed home design and specifications, and the completed value of the property once construction is finished.

Certificate of Occupancy 

Once your home is completed and has passed all required inspections, a Certificate of Occupancy is issued. This certificate confirms the home is safe and suitable to live in and meets all applicable building standards.

In most cases, you’ll receive this certificate before moving into your new home.

Contract of Sale 

The Contract of Sale is the legally binding agreement between the buyer and seller. It outlines the terms and conditions of the purchase, including sale price, settlement date, deposit amount, and any special conditions relating to the sale.

It’s important to read this document thoroughly and seek advice if you’re unsure about any of its contents.

Conveyancer

A conveyancer is a licensed professional who manages the legal aspects of buying or selling property. They prepare and review legal documents, liaise with the relevant parties, conduct property searches, and ensure ownership is transferred correctly at settlement.

Having a qualified conveyancer helps make the settlement process as smooth and stress-free as possible.

Practical Completion

This is a stage in construction at which the building is essentially complete and suitable for occupation, even if there are minor changes and updates to be made.

This usually means:

• The house has been built according to the approved plans and specifications
• Major construction work is complete
• Required inspections have been completed, and relevant approvals have been obtained
• The builder can hand over the keys to the homeowner.

Titles

This refers to the point at which a parcel of land has been legally registered and is officially recognised as a separate property that can be transferred to the buyer. When a block of land is titled, it means the subdivision process has been completed, the land has been registered with the relevant land authority, and the buyer can proceed with settlement.

Settlement

Settlement is the legal process where ownership of the house and land is officially transferred from the developer to the buyer.

It is the point where the buyer completes the purchase of the land, pays the remaining balance, and officially becomes the land and home owner. We strongly recommend organising temporary fencing at this time to keep your land clean and ready for your build.

If you have queries about buying land at Oak Grove or would like guidance throughout the process, speak to our Sales Agents today or visit https://oakgroveclydenorth.com.au/now-selling/ for more information.