Real estate development involves a lot of risks. It includes the sale and purchase of land or buildings, so one wrong move can result in wasted time, money and opportunity. That is what makes advice from experts very valuable. They will help you make the right choices and help you gain the profit you envisioned by conducting research to avoid risks, creating clear contracts to keep you out of trouble and more.

Read on to know more about real estate development and the benefits of hiring a real estate development lawyer.

What is real estate development?

Real estate development, also known as property development, covers all processes and transactions involving the purchase or sale of raw land or existing buildings to increase their value. Real estate developers buy existing properties and renovate them or create them almost from scratch. When they think that the property is ready to be sold, they search for clients who will buy them.

In short, real estate development is all about creating profitable properties and selling them to those who want or need them.

Real estate developer vs real estate investor

Both are in the field of real estate, but they differ in roles. A real estate developer thinks and executes ways to make a real estate functional and ready for selling. They handle planning, designing, financing and finding workers for a project.

On the other hand, a real estate investor is someone who buys the outcome of a real estate developer’s finished project. They buy real estate to avoid the planning stage or building costs and gain immediate profits.

If we put it in order, it will look like this: the real estate developer buys a land/building, creates a plan or renovates a building, then sells it to a real estate investor.

Real estate development vs construction or housebuilding

Although real estate development and construction are closely related, they are not the same. Real estate developers manage designing and planning while those in housebuilding manage the construction of the building itself. However, there are real estate developers who are also engaged in housebuilding.

Some important laws related to real estate and development in Australia

Legal requirements to be a real estate developer

According to Western Australia’s Department of Mines, Industry Regulation and Safety, if you are engaging in property development for business purposes, you are required to comply with the following:

• Register a principal place of business – the REBA Act requires real estate developers to list a principal place of business like a head office or a place where their business records are stored. 
• Keep accurate records and supply true copies  – All receipts and records of transactions must be properly stored for a minimum of six years.
• Handle property sales – The real estate developer must be the one to sell the property (not an employee) or through a licensed real estate agent.
• Follow consumer protection laws – developers must comply with all the requirements of the Australian Consumer Law, such as to sell properties with clear title, match the descriptions given and fit for any disclosed purpose.

Australian Land Law

Here are some of the important legislation regarding property and title in specific states/territories of Australia:

• Australian Capital Territory – Civil Law (Sale of Residential Property) Act 2003, Civil Law (Property) Act 2006
• New South Wales – Conveyancing Act 1919, Real Property Act 1900
• Northern Territory – Land Title Act, Law of Property Act
• Queensland – Land Titles Act 1994, Property Law Act 1974
• South Australia – Law of Property Act 1936, Real Property Act 1886
• Tasmania – Conveyancing and Law of Property Act 1884, Land Titles Act 1980
• Victoria – Sale of Land Act 1962, Property Law Act 1958
• Western Australia – Transfer of Land Act 1893, Property Law Act 1969

Why seeking advice from a real estate development lawyer matters

Helps you follow laws

Without the aid of a real estate development lawyer, you can have a hard time complying with the laws and regulations mentioned earlier. One wrong move can cause denied permits or termination of projects. Real estate development lawyers help you navigate through complex Australian laws by clearly explaining regulations to you and giving valuable strategic advice on how you can be successful in executing your plans and designs.

Helps you avoid risks

Real estate development lawyers are capable of weighing the possible outcomes of decisions and suggesting plans to dodge situations that may cause financial losses. They can conduct due diligence and other forms of thorough research before conducting business with others. In addition, they can review legal documents to help you avoid contract issues.

Can get you out of tough situations

If you are stuck in a dispute or other legal hurdles, advice from property development lawyers offers a way out. They suggest expert solutions and can even help you resolve court proceedings.

Handles permits and other documents

Getting permits can be a headache due to the number of documents and other paperwork that must be done. Property development lawyers take those tasks off your shoulders so you can go back to more productive tasks like planning and designing.

Some specific tasks handled by a real estate development lawyer

• Acts and advices on joint ventures, corporate and trust structures, and finance
• Due diligence and acquisitions, which include options
• Consolidations, partitions and subdivisions 
• Arrangement of site access
• Stamp duty and land tax
• Drafts master sale contracts
• Off-the-plan and post-registration sales, purchaser notifications and conveyancing settlements

Conclusion

Property development opens a lot of opportunities for the growth of the commercial and residential sectors. However, the process of developing real estate is not easy. You can easily get trapped in strict and complex laws, which may result in delays in your project. The worst-case scenario is that you may not be able to finish your development plans due to legal issues.Hiring lawyers that are experts in real estate and development can make the process easier. They will provide strategic advice to help you avoid risks, follow laws and regulations, and how you can get out of legal hurdles. They can also help you with contracts, permits, taxes and other related tasks. Overall, seeking assistance from real estate and development lawyers is a crucial move if you want to secure the success of your current or future projects.