Frequently Asked Questions
Section One – When buying land FAQ
Question - How do I deposit on the land?
- Visit www.brunsleapark.com.au/deposit and complete the sales advice form.
- Transfer $5000 to the nominated bank account (available on request) and send a copy of the transfer to firstname.lastname@example.org
- Confirm your deposit meeting with your preferred Solicitor.
Question - How much of a deposit do I need?
Answer - $5000.
Question - What does the holding deposit mean?
Answer - Paying a holding deposit is your way of securing the lot for 14 days. It is a sum of $5000 which allows for the contracts to be drawn up so the sale can be made unconditional. The sale will only be made unconditional once the contracts of sale have been exchanged, the cooling-off period has passed and settlement is reached. The holding deposit is deducted from the full deposit you pay on your lot. Within the 14 days, you book a time to meet with your solicitor and sign the contracts.
Question - How do I choose my conveyancer?
Answer - You don't need to wait until you are ready to sign a contract - it makes sense to select your conveyancer as soon as you decide to buy in Brunslea Park. Brunslea Park is able to recommend a conveyancer to you, if required. To help you choose a conveyancer we suggest you explain your requirements to a conveyancer/s and ask a handful of questions. Once you have this information and have had the opportunity to talk to the conveyancer that would be handling your transaction this should help you decide on the one for you. Even if a conveyancer has been recommended to you it is still wise to ask the questions so you feel confident you know your costs and what to expect. It is your choice! Here are a few questions you may like to ask a conveyancer:
- Are you a member of the Australian Institute of Conveyancers?
- What's the maximum I can expect to pay in fees and charges?
- What are your fees and what services are included in those fees?
- What will any additional services cost?
- What government fees and charges will I need to pay?
- How long will settlement take?
- How will you keep me up to date with what's happening?
Question - When do I have to pay the full amount for the land?
Answer - If you deposit prior to the registration of the land release, the remaining balance you owe for the land will be paid 21 days after the land is registered. If you are purchasing after the land is already registered, you pay the final amount on the land 21 days after the contract of sale has been signed.
Question - Can I choose my own builder?
Answer - Yes! Choosing your builder is one of the most important decisions as part of your journey. You are free to choose as you please, to suit your wants/needs, preferred style and budget. If you are interested, Brunslea Park is in touch with the majority of local builders in the Wagga Wagga region. Brunslea Park has specific rebates available if you decide to purchase with one of our Display Home builders – Metricon, Dennis Family Homes, STR Builders, GJ Gardner Homes. However, you are not limited to these builders and can choose according to your needs.
Question - What are the benefits of building new vs. existing?
Answer - For many people, buying land and building a home can be an attractive alternative to buying an existing property. This means that you can build the home that will suit you and your family. The land may be bought and the house contracted and built on it, or a house and land package may be purchased from a developer & builder.
You need to decide whether you want to first buy the land and then find a house design to fit the land, or to do the reverse. It is probably more logical to buy the land first as land sites can be very limited but house designs are many and varied, and if you do this ensure the lot you have chosen does not have any constraints such as being too narrow to be able to fit your future home plan designs.
Read our Blog on the Pro’s and Con’s of building vs. buying here…. http://www.brunsleapark.com.au/blog/2018/3/21/the-pros-cons-of-building-vs-buying
Question - Do I need to be pre-approved with finance before I deposit?
Answer - It is not essential that you obtain pre-approval prior to depositing, however it is preferable and recommended. It is however, important that you have had a conversation with a financial representative/advisor to have confidence that you have the funds to a) deposit, followed by b) be able to access the funds to meet the final payment upon settlement.
Question - How long do I have to build?
Answer - Preferably we encourage each person to build within the first 12 months of settlement to ensure the estate remains tidy.
Question - What upfront costs should we expect with the purchase of land only?
- Conveyancing & legal fees
- Stamp Duty
- Loan application or establishment fee
- Mortgage Insurance
- Council & utility rates
- When securing your build contract,
Check the advertised price. Prices advertised are usually base-rate house prices. From here you can choose additional upgrades and features – at a cost. The best thing to do is create a list of everything you expect to be included and go through it with your builder. This will make you aware of anything you might be out of pocket for.
To help with your budgeting, check with your builder about which of the following items are included in the price you’ve been quoted for:
- Excavation and drainage
- Earthworks, retaining walls and certain site works
- Floor Finishes (e.g. carpet, tiles or floorboards)
- Heating and Cooling
- Anything customised (i.e. stainless steel balustrades, larger than normal windows, customised wiring)
- Kitchen cabinets, bench tops, sinks and appliances
- Fencing, letterboxes and landscaping
- Driveways and footpaths
Question - Who can I speak to about getting my finances in order?
Answer - We recommend you speak with a professional finance advisor or a Mortgage Broker, such as Dragan from Aussie Home Loans, or with your preferred bank. We have a number of contacts with local branches and we can refer you to these people on request.
Question - How does finance work with buying land and building?
Answer - Getting a loan for a land release block is different to getting finance for an existing property. You could take out a Standard Mortgage to buy the land, then take out a Construction Loan when you're ready to build. Alternatively, a Construction Loan could cover both the land purchase and the building of the house. Construction Loans are drawn down progressively, aligned to the different stages in the building of your home. This saves you money, as you only pay interest on the balance drawn until the loan is fully drawn. Payments on Construction loans are interest only until the building is completed and the loan is fully drawn, when repayments switch to principal-and-interest.
Question - What arrangements need to be made with my bank?
Answer - If you are obtaining a mortgage to finance the purchase, then you will need to obtain formal finance approval to cover the cost of the purchase. This is paperwork that your financial advisor can help you with. If you require a mortgage to finance the purchase, you should make sure it is a condition in the Contract that the sale is Subject to Finance.
If the purchase is Subject To Finance, then you must advise us if you have been formally approved (not conditionally) by the due date. If you do not tell us before the due date, then it is presumed that you have been successful and the contract becomes unconditional. This means that you will be held liable for the purchase monies.
If you do not need a mortgage to finance the purchase in whole or in part, then you do not need to make any arrangements with your bank.
Question - What is Stamp Duty?
Answer - Stamp duty is a tax levied by all Australian territories and states on property purchases. The stamp duty a buyer pays is based on the property purchase price, location and loan purpose. Some states charge different rates on investment properties than on places of residence.
Question - Who pays stamp duty?
Answer - In NSW, the purchaser of the property or the transferee is liable to pay stamp duty. The purchaser or transferee becomes liable when the sale or transfer takes place. However, if the sale or transfer is influenced by a written document, then the liability arises when the written document is executed.
Question - When is stamp duty paid?
Answer - Stamp duty becomes payable within three months from the date in which the liability arose. If the property is purchased off-the-plan, the stamp duty must be paid within three months from the date of the completion of the agreement or the assignment of the purchaser’s interest in the agreement.
Question - Am I exempt from paying stamp duty?
Answer - If you qualify for the First Home Buyers Assistance Scheme under the FHOG, you may be eligible for a stamp duty exemption or concession. To refer to the values for under which exemptions / concessions apply, refer to the NSW Government – Office of State Revenue, http://www.revenue.nsw.gov.au/taxes.
Question - What other fees are associated with stamp duty?
Answer - There can be others fees that come with stamp duty including a transfer fee and a mortgage registration fee, this depends largely on your financial provider. We recommend you seek independent advice relative to your situation / provider.
Question - How do I pay stamp duty?
Answer - The NSW Office of State Revenue accepts payment in person, via BPAY, Electronic Funds Transfer (ETF), mail or advance payment. It is recommended, always check with your conveyancer, financial advisor or the NSW Government – Office of State Revenue for all information in relation to current Stamp Duty, http://www.revenue.nsw.gov.au/taxes.
Question - What landscaping do we need completed within the 3 month timeframe of completion of the build?
Answer - The front yard must be landscaped within three months of the commencement of occupation.
Question - Do I pay rates before Settlement?
Answer - No. Things like rates and water charges (drains and sewage) will all be adjusted at Settlement. The actual purchase price may vary slightly depending on what needs to be adjusted. Brunslea Park (or the vendor) pays these rates and charges up to and including the day of Settlement. You are responsible for payment after Settlement.
Section Two – Living in Brunslea Park FAQ
Question - How do I report long and untidy grass in the estate?
Answer - All reports relating overgrown grass should be reported to Wagga Wagga City Council via a Customer Service Request. You can telephone Council on 1300 292442 or submit this online via http://eservices.wagga.nsw.gov.au/P1/WWCustom/eRequests/eRequestsHome.aspx?f=WW.P1.REQUEST.VIEW
Question - How do I report dumped rubbish in the estate?
Answer - All reports relating to dumped rubbish should be reported to Wagga Wagga City Council via a Customer Service Request. You can telephone Council on 1300 292 442 or submit this online via http://eservices.wagga.nsw.gov.au/P1/WWCustom/eRequests/eRequestsHome.aspx?f=WW.P1.REQUEST.VIEW
Question - Who do I contact in regards to my Kerbside waste? For example, missed bin services, damaged bin or an additional bin.
Answer - All reports/requests relating to kerbside waste are to be directed to Wagga Wagga City Council via the Your Waste website: http://www.yourwaste.com.au/submit-a-request or via telephone on 1300 292 442.
Question - How do I report potholes or matters relating to road repairs or footpaths in the Estate?
Answer - All reports relating to pot holes, road / footpath repairs should be reported to Wagga Wagga City Council via a Customer Service Request. You can telephone Council on 1300 292442 or submit this online via http://eservices.wagga.nsw.gov.au/P1/WWCustom/eRequests/eRequestsHome.aspx?f=WW.P1.REQUEST.VIEW
Question - How do I report graffiti within the Estate?
Answer - All reports relating to graffiti or vandalism should be reported to Wagga Wagga City Council via a Customer Service Request. You can telephone Council on 1300 292442 or submit this online via http://eservices.wagga.nsw.gov.au/P1/WWCustom/eRequests/eRequestsHome.aspx?f=WW.P1.REQUEST.VIEW
Question - I have questions about my dividing fence and who is responsible for paying for it?
Answer - We have a Factsheet dedicated to Dividing Fences. You can read the factsheet here XXX.
Question - When will the shops go in?
Answer - We have engaged a building designer to create the concepts for our two proposed business precincts, with the first being called a village hub overlooking the wetlands area, and the second being the business precinct on the corner of Elizabeth Ave and the Sturt highway as a motel/tavern/conference centre. There are currently no set time frames around the delivery of these precincts until appropriate approval processing occurs with the Overall Development Plan which is progressing with Wagga Wagga City Council.
We currently already have the liquor license for the proposed family friendly tavern. Are you on our register for updates list? If not, what’s your phone and email and I will put you on this so you know first hand what is happening. Otherwise, Sam can give you a call if you want to know more.
Question - When will the pub be open?
Answer - Good question, we are saying the sooner the better!!! The entire projects team knows that the community wants this as a priority and we agree 100%. We currently have the liquor license for the family friendly tavern, however required approval processing still to occur.
Question - When will I have neighbours to the back of me?
Answer - Our next stages of development are stages 14-16 and then the future area to be developed is subject to approvals which will either be within the new Overall Development Plan area of residential lots, or it will be closer to the Sturt Highway within the northern development area.
Question - When will the BBQ area be constructed in the wetlands area?
Answer - The wetlands construction certificate is currently being progressed for approval. Once this is approved there will be a construction timeline placed together for the wetlands area within the most appropriate time of the year to build it.
Question - Will the fence colour change?
Answer - No, it is expected for the fence colour to remain the same.
Question - Will the powerlines always be running through Stage 13?
Answer - Yes it is believed they will be due to the feasibility to change the location of this, and they have been deemed as not a hazard. Instead, through the Overall Development Plan design we have incorporated in current plans that underneath these would be landscaped linkages which are walkable areas to be able to connect with your neighbours.
Question - Will Brunslea Park eventually link up with Governers Hill and where?
Answer - Yes, it is expected it will! We think this is a huge win:win:win so that Governors Hill residents can meet Brunslea Park residents, utilize each others facilitated and mean a quicker route into the CBD for Brunslea Park residents.
Question - Will there be footpaths in previous stages?
Answer - This is still being perused with Council at the moment and we are investigating this further to aid the connection between Brunslea Park and Forest Hill. We will keep the community posted via our Tribe Talk newsletter.
Section Three – When Building FAQ
**this section is still under construction**
Question - How long does it take to build a new home?
Answer - Approximately it can be a 9 month process from purchasing the land and signing your building contract, however this varies between builders and circumstances.
Question - Will my new home be energy efficient? Does this cost more?
Answer - All new homes built in NSW must comply with the government’s BASIX (Building Sustainability Index) regulations. Compliance with these requirements equates to a more cost effective use of heating/cooling energy, thereby reducing the carbon footprint. A BASIX certificate is obtained after completing the sustainability assessment for your dwelling using the online BASIX assessment tool. Usually your builder will do this for you. Once the design of your dwelling has met the BASIX requirements and the fee paid, a certificate will be issued electronically.
Question - Why is no one working on my building site?
Answer - It is not uncommon for builders to be confronted with this question. The expectation is that once started a mass of tradesmen will be working tirelessly everyday on your site. In reality the building process is a complex one and often trades will be waiting for materials to dry before moving on or waiting for materials to arrive. Occasionally schedules are disrupted by weather. This is unavoidable however, if you have any specific questions, please speak with your builder.
Question - How do I know whether the home design will fit on my block of land?
Answer - Easy. Simply show your block plan to your building consultant and they can tell you not only if your preferred design will fit, but also suggest other designs and even ‘flip’ the plan to maximize orientation on the block. This is normal for our consultants and is generally a quick and easy fix.
Section Four – Terminology Reference Guide
Registered land is when a subdivision has occurred and the block is registered with the land titles office. When purchasing off Brunslea Park, you have the option to purchase prior to registration, which ensures you secure your lot early, or, dependent upon remaining availability, you may also purchase post registration.
Abstract of Title
A chronological summary of conveyances, mortgage or leases and other deeds giving the names of the parties and the description of the land, arranged to show the continuity of ownership of general law land not under the Torrens system.
A government department, local authority or other body empowered by statute to acquire land compulsorily.
Apportionment of rates, taxes, body corporate fees, rent, insurances etc up to the date of possession or settlement on a sale or letting.
An informal estimate of the price of a property, usually provided by a real estate agent. An appraisal is not the same as a formal valuation.
APR (annual percentage rate)
The annual rate charged for borrowing (or made as a result of investing) expressed as a single percentage value. This represents the actual yearly cost of funds (or income from investing) over the term of a loan.
One percent (1%) is the equivalent of 100 basis points.
Building Approval / Construction Certificate
Refers to the written approval provided by the local council’s building approval authority which authorises the construction of a specific project in accord with a written submission including detailed working drawings, typically lodged by the developer/land owner’s consultants or builder. A precursor to the BA is the DA.
BCA (Building Code of Australia)
Written regulations created and maintained by the Australian Building Codes Board (ABCB), setting the minimum standards of health, safety, amenity and sustainability for the construction industry. The BCA details technical requirements for the design and construction of buildings in Australia.
As an alternative to providing builder “retentions” (refer Retentions and Performance Guarantees), a builder can secure their performance obligations under the building contract via Bank Guarantees, Insurance Bonds or similar financial facilities (refer ‘Performance Bonds). The Bank Guarantee is an unconditional promise to pay by the builders Bank in the event that there is an event as proscribed in the Building Contract, which calls for monies to be paid by the Builder. This effectively secures the builders obligations in the same way as the retention monies and the guarantee may be called by the developer/financier in the event of the builder’s non-performance. It should be noted that lenders generally prefer a Bank Guarantee to an Insurance Bond because of its “unconditional” nature and as a consequence, may only accept bonds from a limited list of acceptable insurers.
An authorised person who is responsible for checking buildings in the course of construction and completed buildings to ensure that they have been constructed in accordance with building control provisions.
The setback from the site boundary required by statutory authorities for buildings.
Planning and development controls that limit the use, size and location of buildings or other improvements on land.
Builders terms' generally allow builders to proceed with developing the land without the initial full expense of purchasing the land, merely a percentage deposit.
Represents a property buyer in negotiations with a vendor or his/her agent. The buyer’s agent is paid by the buyer. Buyer’s agents should be licensed and certified to act as a buyer’s agent.
The condition which exists when, under competitive conditions, the pressures of supply and demand are such that market prices are at a relatively low level, giving the buyer an advantage. An over-supply causing prices to decline.
The amount by which the net proceeds from resale of a capital item exceed the book value of the asset.2 Refer to The Australian Tax Office (ATO).
Capital Gains Tax
A Commonwealth tax payable on the Capital Gain made on the sale of an investment property. Refer to current requirements of the Australian Taxation Office (ATO).
A notice on title proclaiming a possible interest other than that of an owner.
‘Buyer beware’, that the risk in a property transaction lies with the purchaser.
Certificate of Title
A document issued under the Torrens System of Title, showing ownership and interest in a parcel of land.
Conditions of Sale
The conditions applicable to a sale contract made between a vendor and purchaser.
Construction loans are drawn down progressively, aligned to the different stages in the building of your home. This saves you money, as you only pay interest on the balance drawn until the loan is fully drawn. Payments on Construction loans are interest only until the building is completed and the loan is fully drawn, when repayments switch to principal-and-interest.
The process of transferring property between a buyer and a seller. In real estate, conveyancing involves drawing up and carrying out a written contract that sets out the agreed purchase price and the date of transfer, as well as the obligations and responsibilities of both parties.
Cooling Off Period
A short statutory period after the contract is made, during which the purchaser may cancel the contract unconditionally. Usually does not apply in the case of auctions. At Brunslea Park, our cooling off period is 5 days.
A condition in a real property deed or title that limits or prevents someone from using a property for certain purposes.
A covenant implied rather than expressly written into a lease. On the part of the lessor this could include the asset being fit for the purpose for which it is let and allowing for quiet enjoyment. On the part of the lessee it could include keeping the premises clean.
CPI (Consumer Price Index)
The average change over time in how much households pay for a fixed basket of goods and services. In Australia, the Australian Bureau of Statistics publishes CPI figures. The CPI can indicate changes in economic inflation and variations in the cost of living.
Unalienated land owned by a State or the Commonwealth Government.
Date of Settlement
The date on which a contract of sale is finalised and final payment is made.
A document executed under seal. For example, a conveyance.
At Brunslea Park, a deposit is the amount of $5000, paid on exchange of contract for purchase of an asset. Prior to this, Brunslea Park will accept a Holding Deposit ($5000), which initiates a 14 day formal hold process. By providing a holding deposit, it shows the buyer’s serious commitment to purchasing the property and formally places the lot on hold for 14 days. At the end of this 14 days an exchange of contract occurs.
The reduction in value of a tangible asset over time. With respect to real estate, depreciation can also mean a drop in the value of property assets due to poor market conditions.
Refers to the written approval provided by the local council’s town planning authority which authorises the development of a specific project in accord with a written town planning, typically lodged by the developer/land owner’s consultants. Approvals are typically granted on the basis that they are either “Code Assessable” or “Impact Assessable”. Code Assessable: submissions means that the proposed development meets all the existing town planning code requirements as published by the local authority and can be processed and approved without public notification. This results in relatively prompt approvals. Impact Assessable: submissions, indicates that the submission has elements that fall outside of the standard requirements of the published planning codes and will require some level of relaxation/approval. It will also require to be given public display, which provides opportunity for parties with legitimate objections to submit them to council for consideration. Prospect of approval will be largely dependant on how much diversion from the planning code is being sought.
Approval from the relevant planning authority to construct, add, amend or change the structure of a property.
Design and Construct Build Contract
This involves the builder undertaking both the construction but also the full process of designing the project. This has advantages when the design parameters are not complex and reduces costs by eliminating the need for an architect and the ongoing interface between the architect and the builder. Conversely this can create cost issues where there is a need for more complex design solutions. This form of contract can also be structured to provide a ‘Fixed Price and Time’ requirement.
A building which represents a completed example of a dwelling type offered for sale.
Decay of seasoned wood caused by fungus.
Investigating a potential investment or purchase to confirm all material facts. When someone is preparing to purchase a property, there are many different aspects of due diligence involved. The buyer needs to examine, among other things, the contract of sale, and the planning controls in place that will affect how the land and/or buildings are used.
A right to use the land of another (not involving the taking of any part of the natural produce of that land, or any part of its soil) or a right to prevent the owner of that land from using that land in a particular manner. Most commonly used where Government authorities have the right to run, for example, electrical mains or drainage through private property. Some form of compensation may be payable.
The legal right to exit and enter a property. In the context of real estate law, egress and ingress are usually relate to use of an easement; for example, an egress or ingress easement will govern the use of a shared driveway or private road for access to and from a property.
A claim against a property by a party who is not the owner. Mortgages, easements and liens are examples of some encumbrances that can apply to real estate assets.
Environmental Impact Study (EIS)
A multi-disciplinary assessment of existing environmental conditions and the likely effect on a specified environment of the introduction of a proposed development or actions which may change the existing environmental conditions and ecological balance.
Exchange of Contracts
A formal legal process that creates a binding contract for the sale of real property on agreed terms. The vendor and purchaser each sign a copy of the sale contract and then exchange these documents, after which time the contract becomes legally binding on the parties. The parties are then bound to proceed to settlement, subject to any cooling off period that may apply. A deposit is usually also paid by the purchaser to the vendor during the exchange process. Any party that unilaterally declines to proceed to settlement may forfeit deposit monies or be subject to a damages claim.
First Refusal (Right of)
The right granted to a person to have the first privilege to buy or lease real estate, or the right to meet any offer made by another.
Fixed Price Construction Contract
This refers to the style of contract that generally construction finance lenders will want to see utilised. It entails a contract that is fixed in terms of both time and price to ensure that most cost over-runs and time delay risks are effectively transferred to the builder. That said, it does not completely remove these risks. Refer: Cost Overruns, Variations and Liquidated Damages. Lump Sum Contract is another form of Fixed Price Contract.
Where the vendor agrees to sell a property, but then sells it to another party on more favourable terms.
A person who undertakes to fulfil a contract if the main party defaults.
New blocks of land become available for sale for the first time. You can buy house and land packages or land only.
An annual tax on the value of a piece of land. In Australia, land tax is administered by the state and territory governments.
The legal right of a creditor to sell a debtor’s property if the debtor breaches the terms of the loan contract. When purchasing any property, conducting due diligence includes being aware of any liens that could remain in place after ownership of the property is transferred.
The act of keeping, or the expenditure required to keep, an asset in condition to perform efficiently the service for which it is used.
The price actually paid, or agreed in a contract to be paid, for an asset. It differs from market value in that it relates to an accomplished fact, whereas market value is and remains an estimate until proved. Market price may involve circumstances not normally included in market value.
Market value is the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing, wherein the parties had each acted knowledgeably, prudently and without compulsion.
The middle number when data is arranged from lowest to the highest in sequence. If there are two median scores, they are averaged to provide the true median. The median is also known as the 50th percentile.
Sometimes fees are paid upon achieving certain events, this can happen with Development Management Fees where, rather than the developer being paid a flat rate of $15,000 per month, they might receive a reduced sum with bullet payments at key milestones dates subject to the level of works completed, thereby keeping the development manager motivated to achieve each milestone.
An insurance policy that the lender or borrower can purchase to protect themselves against mortgage default. In Australia, Lenders Mortgage Insurance (LMI) is usually required for mortgages greater than 80 per cent of the property value. In most cases, the borrower pays the insurance premium for LMI.
NABERS (National Australian Built Environment Rating System)
A national rating system that measures the environmental performance of buildings in Australia. NABERS analyses 12 months of performance data relating to a building or tenancy’s energy or water bills – or conducts a waste audit – and provides a star rating. This rating is scaled relative to the performance of other similar buildings in the same location.
Any building other than the main structure on a particular allotment of land e.g. a garage, workshop etc.
The term used to describe an Owner who takes on the responsibilities of the general contractor to build a specific project. Lenders typically reduce their lending ratios to owner builders as there is an increased risk associated with getting the costing’s right and the associated subcontractor negotiations.
a) A term used in most Australian contracts in lieu of ‘client’ or ‘proprietor’; (b) A licensed estate agent holding responsibility for an agency’s legislative compliance activities including legal responsibility for trust accounts.
Construction loans are typically paid progressively as the project is being built with the lender advancing funds monthly against the loan limit (or fortnightly). While the obligation of the payment is ultimately from the developer/owner to the contractor, most of these payments are made by the lender under the loan facility to protect their security position. The bank’s independent Quantity Surveyor report is key to this as it verifies the work completed then asesses it against the total project cost and determines the cost to complete (refer “Cost to Complete”), enabling the Bank to satisfy itself that the remaining undrawn loan funds are sufficient to complete the project. The lender will typically want to see invoices for the major items and may require a statutory declaration from the borrower that the costs are genuine and that the project is on track and nothing untoward has occurred that they should know about. The lender will then either pay the contractor/invoice directly or if agreed, reimburse the developer for any invoices they have paid themselves. Lenders prefer to pay the principal contractor direct and satisfy themselves that key sub-contractors have in turn also been paid to avoid the risk of having to pay twice in the event of insolvency event impacting the principal/developer.
A professional adviser to the construction industry. Quantity surveyors are responsible for estimating and monitoring costs, from the feasibility stage of a project until construction is completed. They work closely with architects, financial institutions, engineers, contractors, suppliers, project owners, accountants, insurance companies, solicitors and government authorities.
Most major banks have similar presales requirements for residential built product projects. The criteria vary from lender to lender and can also be dependent on the level of debt and the prevailing market conditions. That said typical current requirements on qualifying presales are: - Minimum 10% deposit by way of cash or bank guarantee; - No more than 2 properties per buyer; - A limit on the number of buyers domiciled overseas. (Note: the % limitation of this requirement can vary according to the project and structure of the transaction together with the prevailing market/economic conditions.
Periodic property taxes levied by Local and State Governments.
To terminate a contract of sale.
The lowest acceptable price fixed by the vendor.
Generally a builder agrees in the contract to have a portion of their progress payments held back or “retained” as surety that: (i) they complete the contract works, (ii) the quality of the works are satisfactory; and (iii)any faults requiring rectification are completed in a timely manner. Typically the level of retention is set at around 5% of the total contract sum but this can vary according to the risks involved as agreed by the parties, including the financier. Similarly, retentions are usually accrued at the rate of 10% of each progress payment until they equate to the agreed limit however, this can also be adjusted by agreement between the parties. Retentions are usually released to the builder on the basis of 50% on the satisfactory completion of the works and the balance at the end of the warranty period agreed under the contract (typically anywhere between 3-6 months), with the clients/financier’s QS usually responsible for assessing the quality issue and determining the level of retentions to be expended on issues requiring rectification. As an alternative to the retention process a builder can provide Bank Guarantees however, this requires the provision of appropriate security to the issuing bank and in most cases, small builders opt for the retention process and then apply a similar process to their sub-contractors, effectively reducing the impact on their own cashflow.
Renounceable Presales Contract
A contract structure that allows the developer/seller to renounce that contract at a later date. This is typically how presales underwriting agreements are documented.
This is the approach used by a valuer and accepted by most banks and which differs from the Developer’s method by using the market “knowns” and an appropriate “profit and risk” factor to solve for the market value of the site “as is”. Gross Income less: selling costs = Net Income less: Profit and Risk factor = Total Capital Outlay less: Development, Finance, Interest and Acquisition costs = “as is” Value of Land. This is then crosschecked against the site value as assessed by reference to comparable site sales over the past 6 months (Direct Comparison method), to ensure that the value determined is accurate.
A mortgage over a residential property owned by a person (usually over 55 years of age), where repayments are not required until the property is sold or the last homeowner dies.
This is the final stage of the sale when the purchaser completes the payment of the contract price to the vendor and takes legal possession of the property.
The date on which a contract of sale is finalised and the balance of money is paid for an asset.
Soft Costs are considered to include preliminary architectural and engineering, legal, permit charges, financing fees, construction Interest and operating expenses, leasing and real estate commissions, advertising and promotion, and supervision fees.
A tax on legal documents that relate to the transfer of assets or property. Property sales and acquisitions throughout Australia are subject to stamp duty, although rates vary in each state and territory.
A form of ownership created for multi-level apartment blocks, and horizontal subdivisions with shared areas such as car parks and swimming pools. Strata title properties consist of individual lots and common property. Lots can be apartments, garages or storerooms, and each is assigned a lot owner on the title document. Common property is defined as everything else on the parcel of land that is not within a lot – such as stairwells, driveways, gardens and so on.
Divisions by a land owner, of all or part of a parcel of land, into separate allotments (or sections), each with a separate title, in accordance with a ‘plan of subdivision’ approved by the planning authority.
The measurement and depiction on paper of the boundaries of real estate and the location of the improvements on the land, or measurement of a part of a building, usually undertaken by a registered surveyor.
Total Development Cost (TDC)
Total Development Cost, this is the sum of all costs associated with completion of the project. Refer also Hard and Soft Costs under Finance Termination, ‘Development Costs’.
Documents evidencing the ownership of property.
A legislatively required bank account where monies are held by an agent for or on behalf of another person e.g. deposits, rental etc.
A property considered free of encumbrances or restrictions. The following outlines some the general terms used with reference to the various types of debt and equity options typically available in the market place.
The proportion of inhabitable rental premises which are vacant.
In real estate this refers to a right to possession of land or built-up property in respect of which there is no current occupant.
A formal process of establishing the value of a property from an objective and independent point of view. In most Australian states and territories, a formal valuation can only be provided by a qualified valuer who has the necessary qualifications and training.
A document that records the instructions for the assignment, the purpose and basis of the valuation, and the results of the analysis that led to the opinion of value. A Valuation Report may also explain the analytical processes undertaken in carrying out the valuation, and present meaningful information used in the analysis. Valuation Reports can be either oral or written. The type, content and length of a report vary according to the intended user, legal requirements, the property type, and the nature and complexity of the assignment. The terms, Valuation Certificate and Valuation Report, are sometimes used interchangeably.
A person who is: (a) registered / licensed / approved to carry out property or plant and machinery valuations under any State, Territory or Commonwealth legislation; and / or (b) a member of the Australian Property Institute who is accredited as a Certified Practising Valuer.
An addition to, omission from, or alteration to a contract or to the contract conditions.
One who sells anything. In real estate transactions, the person(s) or entity selling the property.
An agreement which can be made void at the option of one or both of the parties.
Water Closet (WC)
A room equipped with toilet fixtures and facilities.
A measurement of the future income an investment property is expected to bring in. Yield is calculated annually as a percentage of the cost (or market value) of the asset.
Gross yield is the income expected to be received before expenses; net yield takes into account running costs of the property, including maintenance costs, management fees and so on.
Yield is particularly important to commercial real estate investors, because it is usually the main source of income they expect to receive from their investments.
Capital growth rates for commercial buildings are often not as high as for residential properties, so the yield on this type of purchase is often a more important factor when deciding whether to buy.
Councils typically provide guidelines as to the permitted uses of land and buildings within designated zones shown on town planning maps which are published to assist developers assessing the development potential for their sites.
Common Terminology – Construction specific
That part of a pier or wall either end of an arch, beam, or bridge which resists the pressure of a load.
Approach or way in.
Door which allows access to concealed space or equipment.
Materials added to mortar or concrete to achieve particular modifications to the normal properties of the basic material.
The crushed stone or alternative substance contained in concrete.
A contract between two or more parties, either written or verbal.
Ventilation built into brickwork to provide ventilation through the wall.
A building site.
Termite barrier (shield), usually of galvanised iron, placed over piers and dwarf walls to control the entry of termites.
The highest point of a gable.
A structure of wedged shaped blocks, or square blocks with wedge shaped joints, over an opening so disposed as to hold together when supported from the sides, and capable of carrying a load over the opening.
A structural member or beam carrying loads over an opening.
A person who is qualified to design buildings and supervise their construction.
A moulded section covering the joint between window and door frames and the wall lining.
The measure of a plane surface within defined boundaries, eg land, buildings.
Approved standard for material, equipment, technique or procedure as set down by the Standards Association of Australia (SAA).
To fill the earth, any remaining space after placing concrete, brickwork, timber, pipes etc in an excavation.
A masonry process in which thin mortar is applied to the face of the work with some coarse material.
A platform, enclosed by a railing or balustrade, projecting from the face of either an inside or outside wall of a building (eg a gallery in a theatre).
A small post used to support a hand-rail.
A series of balusters supporting a hand-rail.
The board covering the roof timbers on the gable or skillion end of a roof, fixed parallel to the roof slope.
The NSW Government introduced compulsory minimum guidelines, including requirements governing water and energy use in new homes, to improve their design and longer term sustainability. BASIX is a building sustainability index which supports the guidelines. These guidelines apply to all new residential developments in NSW. Your builder will help you manage this process to ensure your home complies.
A window of varying shapes, projecting outward from the wall of a building, forming a recess in a room
A moulding, generally of small size in cross section.
A horizontal load-bearing structural member.
A member of floor framing, spanning piers and supporting joists.
Horizontal joint in brickwork.
A fixed point of reference, the elevation of which is known and referred to during levelling operations.
An angle formed between two straight lines meeting at an angle other than 90°.
Diameter of centre hole in circular saw blade.
Several species of insects and larvae that tunnel into timber.
Deformation of timber at right angles to its face.
A member, usually a diagonal, which resists lateral loads and/or movements of a structure.
Common blocks of material moulded from clay or cement used for building or paving purposes.
Best quality bricks used for face or external work, or for other special work.
A construction where the external and internal walls are built of brick.
Framed construction with an outside skin of brickwork tied to the frame.
Regulations by which local authorities control building construction. No new building work or alteration of existing structures may be carried out unless these regulations are observed.
A projecting beam supported at one end, or a large bracket for supporting a balcony or cornice. Two bracket like arms projecting toward each other from opposite piers or banks to form the span of a bridge making what is known as a cantilever bridge.
The uppermost part on top of a piece of work.
Bricks which are specially shaped for capping the exposed top of a wall.
A hollow wall, usually consisting of two brick walls erected 40 to 50mm apart and joined together with ties of metal.
Copper chrome arsenic salts used in preservation of timber.
The overhead internal lining of a room. The height of a room measured from floor surface to ceiling, or, where there is no ceiling, to the underside of the rafters.
A structural member which binds the wall and roof framing together and carries the mass of the ceiling sheeting.
Obtained by crushing and burning limestone in kilns, the resulting clinker being finely ground with gypsum and with the addition of various aggregates is used for many purposes (eg concrete, mortar)
Length of string thoroughly coated with chalk dust, used to strike a straight guide line on a material. Line which is made with a chalking line.
Civil Engineering Works
Works comprising a structure other than a building and its associated site works such as a dam, bridge, road etc or an operation such as dredging, dewatering, soil stabilisation.
Any material used to face a building or structure.
Hard stone, basalt, dolerite, cracked river gravel greater than 4.75mm in diameter - a component of concrete.
Free standing vertical load bearing member.
The process of assembling materials and erecting a structure. The medium in which a building is built (eg wood, steel or masonry).
Joint which occurs because of the sequence of construction, unlike an expansion joint.
A line drawn on a site plan joining points of the same elevation.
Working drawings, specification and details which form part of the formal contract between the Client and the Contractor.
One who agrees by written agreement or contract to supply materials and perform certain types of work for a specified sum of money.
Fine cracks that may occur on plastered or rendered surface.
Distorting of wide boards showing curvature across the grain causing the broad surface to be concave.
Treatment of concrete or cement rendering to facilitate hardening.
Damp Proof Course
A barrier, usually physical, built into masonry to prevent moisture migrating up from the ground or down from above, eg chimneys, parapets.
A predetermined level on a site from which all other levels are established.
A permanent, inert load on a building or other structure due to the weight of its structural members and the fixed loads they carry, which impose definite stresses and strains upon the structure.
An oblique framing member securing wall framing lateral in vertical position.
A load spread over a surface expressed in kilograms per square metre, or along a length of member expressed in kilograms per metre.
Doors - Flush
A smooth-faced door.
Doors - Hollow Core
A door with infill of expanded cardboard.
Doors - Solid Core
A door with blockboard fill.
In wide openings, a door may be made up into two or more individual sections or “leaves”, which are hinged together.
An optical levelling instrument.
A brick wall from footing level or underside of floor framing.
The lower part of a roof that overhangs the walls.
A geometrical drawing of a facade of a building.
A professionally qualified person, who when associated with building and planning, designs, supervises and manages Civil, Structural and Services components of projects.
A hole made by removing earth.
A joint in a building to permit thermal movement or creep.
A soft, resilient material used to fill the void provided for the expansion and contraction of any two adjacent substances.
A board fixed horizontally to the lower ends of the rafters, to which guttering may be fixed. Also forms the outside board of a boxed eave.
A strip of impervious material used to prevent the ingress of water between two surfaces.
The construction whereby the weight of the structure is transferred from the base structure to the foundation.
The ground upon which the footings of a building are constructed.
A roof shape consisting of two sloping surfaces.
A classification of timber by strength requirement to perform a specific tasks.
The ground level or natural grade line.
Floor Plan / Ground Plan
Plan view of a horizontal section of a building showing the layout of rooms on the ground floor.
A roof with an end roughly pyramidal in shape, with surfaces sloping upwards from all three eaves.
Any device or machine used in building for lifting materials.
A survey which indicates whether a building is erected on the correct allotment and does not encroach on any of the side boundaries.
Line of Sight
The straight line projected from the telescope of a dumpy level.
Internal covering to walls of framed construction.
The load arising from the intended use or purpose of the building or structure, but excluding wind, snow and earthquake loads.
A waterproof adhesive plastic compound.
The mixture of sand and cement that binds together the aggregate of concrete.
Material which is used to retard the flow of vapour or moisture into floor or walls.
Mass of water contained in timber expressed as a percentage of dry wood fibre.
Any structure made of a continuous mass of material or cast as a single piece.
Non-Load Bearing Partition or Non-Load Bearing Wall
One which supports no vertical load except that of its own weight and merely defines spaces.
Off Form Concrete
Concrete which is formed by placing and stripping from formwork and has no other applied finish.
The flashing which is built into the wall surface and sits over the upturned apron flashing.
The section of a roof extending over the external wall (see Eaves).
Placing too heavy a load on a beam, column or floor.
An open framework over a path, terrace or patio.
A vertical member of base structure.
The angle of inclination to the horizontal of a roof or stair.
Prime Cost Sum
A sum allowed for and included in the contract specifications and/or Bill of Quantities by the architect to cover certain items which are subject to a later selection by the architect. The allowance made is to cover the supply and/or labour of the item selected; and charges by the contractor are based on net purchase prices and are accounted for and adjusted in the final statement of accounts.
PVC (Polyvinyl Chloride)
A widely used plastic - the main uses include water pipes, waste pipes and floor covering.
A sum set aside in the Bill of Quantities or Contract to provide for work whose scope is not clearly foreseen.
In roof construction, a timber framing member providing the principal support for the roofing material.
A step-shaped reduction cut along an edge or face or projecting angle of wood.
Rules made to implement an Act of Parliament (ordinances).
The covering of a wall surface with one or more coats of cement mortar.
Any wall subjected to lateral pressure other than wind pressure and built to retain material.
The angle formed between a sloping roof surface and a horizontal line
A frame designed to carry the loads of a roof and its covering over the full span without intermediate support.
The tendency for coarse aggregate in concrete to become separated from the cement paste.
Supply or distribution pipes for cold or hot water, steam or gas; also power cables, telephone cables, lift machinery, transformers, drains, ventilation ducts, and so on.
A roof shape consisting of a single sloping surface.
A core of earth taken from specific positions on a building site to test and select the type of footing needed.
Steel Frame Construction
Building in which the structural members are of steel or dependent on a steel frame for support.
A ceiling which is suspended from and is not in direct contact with the floor or roof construction above and generally used to conceal services.
Suspended Concrete Slab
A slab spanning between supporting walls or posts.
The construction of new footings and walling under the footings of an existing structure which have failed or may fail.
The Waffle Pod Slab System is a better way of building concrete slabs for new homes, extensions or commercial industrial buildings. The Waffle Pod Slab Systems allows more accurate specification of concrete quantities, reduces waste and provides a substantial boost to building site efficiency. It has minimal impact on the environment - there is less soil disturbance, and no excavated rubble from trenches to dispose of. The on-ground slab, with air pockets created by the Pods, forms an insulating layer between the structure and the ground.
Materials and construction which will prevent water from passing through walls and joints.
The making of walls impervious to water or dampness by mixing a compound with the concrete, or by applying a compound to the surface of the wall.
Openings sometimes left in the perpend of a brickwork course over flashings, and at the bottom of wall cavities for drainage purposes.
The estimated pressure or force exerted upon a structure by the wind, which must be provided for in the design of the structure.
Section Five – Land Contract and Covenants FAQ
At Brunslea Park, we’re committed to creating better communities through the promotion of good urban design and environmentally responsible development.
Our aim is to develop an attractive and functional neighbourhood that you and your family will enjoy well into the future. Our covenants are there to help protect the value of your neighbourhood and your home while also being environmentally friendly. For these reasons, we have the following covenants / building contract terms:
All Dwellings within Brunslea Park are to
a) have a minimum floor area of 150 square metres, including garages and verandahs.
b) have their external walls constructed from brick, brick veneer, stone, concrete, hebel or exin. At Brunslea Park, to ensure we uphold a high standard and with the aim of protecting resale values, we prohibit the installations of transportable homes/dwellings that are manufactured off-site.
c) have a roof of a) concrete tiles, terracotta tiles or colourbond metal sheeting; with b) a minimum of 20 degree pitch; and c) with eaves of at least 450mm overhang to the front of the dwelling;
d) be used as a private residential dwelling;
Garages and Carports
Again, to ensure a high standard of presentation within the estate and to protect the resale values of your property/ies, all dwellings are to have a minimum of a two-car, fully-enclosed garage, connected to the main dwelling through a continuous roof line, providing internal access between the garage and dwelling. There are no carports within the estate.
Fencing on standard lots:
It is important you always refer to your land contract when planning to install a fence to your property. Most local fencing contractors are aware of Brunslea Park’s fencing standards, however it is important you always discuss this with them prior to finalizing your fence order/s.
Standard lot fencing – Stages 14a >
For Stage 14a and beyond, fences are to be in unison, being 1.8m high, constructed of double-sided Colourbond or Colour-bond like material. The colour of the fence is to be Rivergum or identical colour with capping.
Corner lot fencing – Stages 14a >
If you are on a corner lot, the fencing is to be made up of:
- Up to 40% of the length of the fence is to be consistent with style and type of fencing as described above; and
- The remaining 60% of the length of the fences are constructed with a combination of pillars and infill fencing slats. To ensure consistency, the pillars are to
- have minimum dimensions of 350 mm square from top to bottom with either a flat finish or capped pier on top; as well as
- be spaced between 2 and 3 metres apart; and
- constructed of materials consistent in colour and type to the dwelling on the lot;
- be no less than 1.2m high and not more than 1.5m high.
Notably, as is the case with any other estate, no fence is to interfere with any footpath or planned footpath.
To maintain the presentation of the estate, Letterboxes are to be constructed of materials consistent with that of the main dwelling.
Landscaping and Maintenance
At Brunslea Park, our aim is to create an attractive neighbourhood whilst also contributing to the growth of property values. At Brunslea Park, all front yards are landscaped within 3 months of occupying the dwelling. Lawns are kept tidy and maintained, and don’t exceed a height of 100mm. This helps to contribute to the overall presentation of the estate. Rubbish / debris isn’t to be stored on your lot, unless it is in a receptacle which complies with Wagga Wagga City Council’s requirements for construction.
All vehicles upon a lot are parked in a garage on upon a driveway, as well as boats, trailers, caravans and other similar items are garaged or otherwise screened so they aren’t visible from the street. Prior to, or during construction of a dwelling, cars, boats, trailers, caravans or other similar items are not kept on the lots within Brunslea Park.
Except on collection days, garbage, recycling and other bins are screened by fences or vegetation or otherwise obscured so that they are not visible from the street.
A dividing fence is defined as a structure that separates neighbouring properties, and it is usually on the common boundary between two properties.
Disagreements over dividing fences can be challenging, however following the steps below can help reduce the chances of conflict developing.
STEP 1. - CONDITIONS OF SALE / COVENANTS
First and foremost, it is recommended you familiarise yourself with the conditions set out in your sale contract, to ensure your proposed fence is in keeping with the specifications approved by Council for the relevant stage within Brunslea Park Estate.
STEP 2. - NOTICE TO CARRY OUT FENCING WORK
As a fence affects owners on each side, the Dividing Fences Act requires an owner to give the adjoining owner notice of any proposed fencing work. This is called a Notice to Carry Out Fencing Work. Whilst there is no set form for a Notice to Carry Out Fencing Work, it must be in writing and must include:
An accurate description of the where the fence will be located
The type of fencing work to be carried out. For example, the material, height, and length of a proposed fence
Who will carry out the fencing work: e.g. contractor or self
- TOTAL COST:
The estimated cost of the proposed fencing work. It is advisable to obtain a quote and include this with the Notice to Carry out Fencing Work
PROPOSED DISTRIBUTION OF COSTS:
- The cost that is proposed to be paid by each owner
- A draft template for Notice to Carry Out Fencing Work is provided here, for your convenience.
- A Notice to Carry Out Fencing Work can be served on the adjoining owner in person or by email / post to the owner’s usual or last known address. After the notice is served, adjoining owners can come to whatever agreement they like about the cost, contribution and location of the fence.
- A written agreement is the best way to prove what has been agreed to and to ensure that both sides uphold their side of the deal. Anything that has been agreed upon is enforceable by law. Also, it is important to note, without an agreement an owner does not have permission to enter the adjoining property to carry out the fencing work, and doing so may amount to trespass.
No Notice – No Contribution from Neighbour
It is important to note, an adjoining owner is not required to contribute to the cost of fencing work carried out before an agreement is reached (unless a court or tribunal determines the work was urgent).
If no agreement is reached within one month after the Notice to carry out fencing work has been served, either owner can apply, usually to the New South Wales Civil & Administrative Tribunal (NCAT) or the Local Court, for a fencing order.
If you require assistance with Mediation, we recommend you contact your local Community Justice Centre, whom offer a free mediation service, funded by the NSW Government. They can be contacted on 1800 990 777.
For detailed information on the legislation, please refer to the Dividing Fences Act 1991.
Live next to a park or reserve?
It is important to note, Councils and other public authorities that own or control parks, reserves and similar land are not required to contribute to fencing costs.
Contacting your Adjoining Owner
If required, the team at Brunslea Park can assist you in identifying your adjoining owner/s. If you require assistance with this, please apply for the personal details of neighbours to be released to you, by completing the following webform: Fencing - Request for Adjoining Owner Details form.
*Disclaimer: The above information is intended only as a guide. Reference should always be made to the relevant legislation.
SERVED By: (Your Name) As the Land Owner or ON BEHALF OF: (Land Owners Name)
KINDLY take notice that I/We intend to carry out fencing work described below. Accordingly I/we request a contribution towards the carrying out of that fencing work. The proposed fencing work is in respect to the common boundary of adjoining lands:
Lot: (Your Lot No) DP: (Your DP No)
Address: (Your Street Address)
Lot: (Adjoining Owner Lot No) DP: (Your DP No)
Address: (Your Street Address)
I propose that:
(a) the fencing work be carried out on the common boundary of the adjoining lands described above.
(b) the fencing work consists of:
Total Length: 00.00 metres
Nominated Height:0.0 metres
Construction Material: (Material)
Main Colour: (Colour)
Cost per Metre: $00.00
(c) the estimate cost of the fencing work of: $000.00 be born in 2 equal proportions of $000. 00
If you agree to this proposal, please complete this form of agreement hereunder and return a copy to me as soon as possible. I would also be pleased if you could let me know if you do not agree to this proposal.
I,………………………………….. for and on behalf of ________________ hereby agree to the above proposal and in accordance with the provisions of the attached Quotation.
PROPOSED WEB FORM:
REQUEST FOR PERSONAL INFORMATION TO SERVE A NOTICE UNDER
THE DIVIDING FENCES ACT, 1991 SECTION 21
Applicant requests the personal details of the owner of the property indicated below.
I agree not to make this personal information available to other parties and to use the personal information for the sole purpose of serving a notice under the Dividing Fences Act 1991.
The information provided, in response to this request, is confidential and is intended for the use of the named Applicant only, and specifically for the reason requested.
PRIVACY AND PERSONAL INFORMATION PROTECTION NOTIFICATION
By submitting this form, I acknowledge that the personal information provided on this form is collected by Brunslea Park for the purposes of recording, processing and supplying the information sought. Access is limited to use by Brunslea Park employees and other authorised persons. Under appropriate legislation if requested in writing, access to the information provided on this form may be made available to third parties. This form will be stored within Brunslea Park's Record Management System.