Homebuyers Centre Victoria - Price Protection Policy
To ensure transparency and price certainty with all our customers, we have introduced a new Pricing Policy. This takes into account the widespread delays in the titling and registration of land in Victoria, which is causing some confusion and concern among customers, especially as the costs of building are increasing. We believe this commitment to upfront pricing leads the local Victorian market and will provide peace of mind and certainty for our customers.
In your Preliminary Works Contract (PWC) Homebuyers Centre guarantees fixed pricing up to 15 months to title. Following this, upon signing your HIA New Home Contract, we now include a 12-month grace period from the estimated title date included in your PWC (Preliminary Works Contract). This allows for any potential delays in your land title.
In the unlikely case that your land title delay does blow out past the time allowed for in your PWC and your HIA New Home Contract, there is a monthly fee up to the event of land title.
- Single storey homes: $900 per month
- Double storey homes: $1,200 per month
We believe that this is a fair and transparent way to minimise both the uncertainty and cost increases caused by delays in land titling.
Click here to read the full details of our Pricing Policy, or reference Frequently Asked Questions below. Alternatively you can contact a member of our team for more information on 131751.
Price Protection FAQ's
Q. What is a Land Title?
A. Land title is a certificate that identifies the land and who owns it. It also contains information about any mortgages, covenants, caveats and easements affecting the land. At the time you sign your land contract, your lot may not have its own title because the subdivision process needed to create your individual lot has not yet been completed. If this is the case, your lot will be described as being on a proposed plan of subdivision. The subdivision process is explained further below.
Most vacant blocks of land purchased in Melbourne’s growth area sub divisions begin their life as part of large single parcels of land or even multiple parcels joined together to form an estate. In most cases these original parcels of land were farmland.
Once a site is identified as a potential subdivision, many things have to occur in order for the final block to be delivered ready to build a new house on. This includes initial acquisition and planning approvals, finance and construction, followed by compliance.
In order to achieve individual titles a developer must obtain certificates of compliance to show that all works on each individual lot have been completed correctly and that all authorities are ready to accept the new assets. This is then sent to council in preparation for Statement of Compliance.
Any issues identified by the authorities need to be rectified before certificates are issued.
At the completion of civil works a council inspection will also be undertaken. Once council is satisfied that all required works are complete Statement of Compliance will be issued.
Once a statement of compliance is issued by council it is then sent to the titles office where individual titles are issued.
Want to know more? Download the full ‘What is a land title’ document here.
Q. What can impact my forecast title date?
A. With such a long list of things that need to occur to turn a block from the original farmland to the final lot ready to build a house on, and so many people / authorities involved delays can and do occur.
Generally developers will have sufficient contingencies built into their forecast title date to allow for delays. During times of high demand, such as a strong market, each step in the process can take longer than usual – add all of these small delays up and they can become long delays.
Weather plays a large part in the time to complete the sub-division. Long periods of wet weather can have an enormous impact on the time to complete works onsite – again, good developers will have sufficient contingencies built into their forecast
The point in time in which the purchase was made can impact the accuracy of the forecast. If the purchase was made prior to the developer receiving planning approval, then delays are quite likely as there are significant and critical approvals still required most of which are outside of the developer’s control. If the purchase was made closer to construction completion, there are only a few steps to go most of which are inside the developers control. The further advanced the stage is the less delays typically occur.
Were the timeframes realistic to begin with?
The process of developing a block of land so that is ready to have a home built on it is a long one with many moving parts however all of these must be completed prior to settlement occurring and any builder being able to commence construction of a new home.
Q. Should I wait until my land titles and is registered to me before engaging a builder like Homebuyers Centre?
A. Once you’ve bought your perfect block of land, it’s time to start researching builders, what designs you like and suit your needs, and seek advice on the best orientation to maximise natural light and energy efficiency.
You can also take advantage of current pricing - when you choose Homebuyers Centre as your builder, your new home price will be fixed up to 15 months to title, plus you enjoy additional protection from the 12-month grace period within your HIA Contract from the initial Estimated Title Date. To be reviewed and padded out; Select your finishes + other benefits of why NOW is the time to buy. Engaging a builder while you wait for your land to title means you can get all of the planning and pre-construction work done, so when your land titles, you can move into the building phase that much quicker.
Q. If my land title takes longer than expected, how much extra will it cost to build my home?
A. We provide you with a fixed price based on your Estimated Title Date and we will hold this price for a further 12 months to allow for any unforeseeable land title delays.
In the unlikely event that your land still has not titled within the 12 month period, our Price Protection Policy makes the terms and costs of continuing to retain us as your builder clear.
Q. Why should I pay extra money for my home when the delay in getting started, beyond the extra 12 month price hold period is not my fault?
A. We understand you have no control over when your land titles. Unfortunately we also have no control over when a developers land will title. However, we are committed to working with you on a solution.
Delays in land title have meant that building costs have increased while our customers wait for title, however our industry leading Pricing Policy is designed to minimise the cost impact of titling delays on our customers.
Q. What does this mean for my finance arrangements?
A. In the unlikely event that additional costs are incurred and you wish to include these in your financing arrangements, it is important that you approach your mortgage broker or Bank to evaluate your options.
What to know more? Our New Homes Consultants are available on 131751.