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Property development

The rules for property developers have recently changed. It is now simpler to work as a property developer.

Licensing

Property developers do not require a licence.

If you held a licence under the old system, it has now expired. You may now operate without it. If you were a property developer salesperson, you are now registered as a real estate salesperson.

Disclosure

If you have at least a 15% interest in the property you must disclose to a buyer if you pay any benefits to a third party. This includes fees, commissions or other benefits (money or otherwise).

You will need to tell the buyer:

  • the full name of the third party
  • their relationship with you
  • the benefit they will get from you.

Third party agencies might be:

  • mortgage brokers
  • building or pest inspectors
  • marketing agencies
  • real estate agents.

If you sell house and land packages, this will apply to:

  • the building contract
    and
  • the land sale contract.

Find out about interests and benefits

Payment from buyers

You must make sure that a sale payment from a buyer goes directly into a trust account. This includes part-payments and deposits. As a property developer, you will not have a personal trust account.

You will need to store these payments in a trust account managed by:

  • the public trustee
  • a law practice
  • a property agent.

Larger-scale subdivisions

Extra rules apply to larger-scale subdivisions (subdividing land into 6 or more parcels).

These rules cover:

  • buying and selling off the plan
  • disclosing information to potential buyers
  • terminating a contract
  • handling trust monies.

These rules apply to:

  • a building contract
  • a house-and-land package contract
  • a land sale contract.

Similar rules apply if you’re developing a community titled complex (such as a block of units).

Find out more about subdividing and selling land

Find out more about community title schemes

Last updated
28 July 2016

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