Property Due Diligence for Developers: Complete Australian Guide

Property developers navigating site acquisitions in Australia may face significantly more complex due diligence requirements than residential purchasers—typically 150+ investigation items compared to the standard 20 for homebuyers. Understanding these requirements could mean the difference between a viable development and discovering deal-breaking constraints after contracts are exchanged.

This comprehensive guide covers what Australian property developers may need to know about due diligence processes, from initial title investigations through to settlement, with state-specific guidance across all eight jurisdictions. Whether you’re acquiring a single development site or consolidating multiple titles for a large-scale project, understanding the critical path for investigations could help you avoid costly mistakes and timeline delays.

How development due diligence differs from residential purchases

Development site due diligence typically requires a fundamentally different approach compared to residential property purchases. While homebuyers generally focus on property condition and immediate livability, developers may need to assess feasibility, yield potential, and entitlement risk across multiple dimensions.

The timeline difference alone is typically substantial. Residential due diligence might be completed in 30 to 45 days, whilst development due diligence commonly requires 60 to 90 days minimum—and potentially several months for complex sites with brownfield contamination or entitlement uncertainties.

Investigation depth also differs markedly. A residential buyer’s building inspection might cost $400 to $800, whilst a development site could require geotechnical testing ($5,000 to $15,000), Phase I environmental assessments ($2,000 to $5,000), contamination testing if issues are identified ($5,000 to $20,000 or more), plus specialised surveys and engineering studies. Hidden costs revealed through thorough due diligence may add 10% to 15% to your acquisition budget.

The professional team required for development acquisitions is also typically more extensive. Where a residential buyer might engage a conveyancer and building inspector, developers generally need to assemble property lawyers (not conveyancers), licensed surveyors, town planners, civil engineers, environmental consultants, and potentially geotechnical engineers—each bringing specialised expertise to assess different feasibility dimensions.

Perhaps most critically, development due diligence focuses on what you can build rather than what currently exists. Title restrictions, easements, covenants, and planning overlays may directly impact your yield calculations and project viability in ways that wouldn’t concern a residential purchaser.

The developer’s land title search checklist

Title investigations for development sites typically require several layers of searches beyond the basic Certificate of Title review that might suffice for residential purchases. Understanding what to request and when could help you identify deal-breaking issues before incurring substantial investigation costs.

Preliminary title search

Your first step may be obtaining a preliminary title search immediately upon identifying a potential site. This search, which typically costs between $7.35 in Victoria to around $220 in the ACT depending on jurisdiction, should reveal the current registered proprietor, any mortgages or caveats, and registered easements or covenants.

At this preliminary stage, you’re generally looking for obvious red flags such as easements bisecting the development area, restrictive covenants limiting density or use, access issues, or ownership complications. Services like InfoTrack or direct access through state land registries may provide these searches, often with turnaround times ranging from immediate to 24 hours depending on the jurisdiction.

ALTA survey requirements

Whilst Australian surveys may not follow the American Land Title Association (ALTA) standard, developers typically need a comprehensive cadastral survey showing boundaries, existing improvements, easements, and any encroachments. A licensed surveyor should be engaged to prepare this survey, which might cost $2,000 to $8,000 depending on site complexity and size.

The survey should clearly delineate buildable area once setbacks, easements, and other restrictions are applied. For development feasibility, understanding the actual developable area is typically more critical than knowing the total site area—an easement consuming 15% of your site could reduce your yield by 20% or more if it intersects your planned building footprint.

Historical title searches for brownfield sites

If you’re considering a site with previous commercial or industrial use, historical title searches may reveal past ownership and use patterns that could indicate contamination risk. Some jurisdictions provide historical records at no additional cost—for example, Land Services SA offers free access to historical data from 1858 to 1992, which may be valuable for understanding long-term site use.

Historical searches might also reveal extinguished easements or old covenants that, whilst no longer registered, could indicate subsurface conditions or access rights worth investigating further.

What to look for in development site titles

Beyond the basic ownership and encumbrance information, developers should typically examine several specific elements that could impact feasibility:

Easements and their implications: Not all easements equally impact development potential. A one-metre-wide drainage easement along a boundary might be accommodated in landscaping, whilst a six-metre-wide utility easement bisecting your site could fundamentally alter your building placement and yield. Understanding easement widths, purposes, and whether they contain above-ground or below-ground infrastructure may be essential.

Restrictive covenants: These may override zoning allowances and could prevent your intended development regardless of planning approval. Covenants might restrict building height, density, materials, architectural style, or use. Unlike some encumbrances, covenants are often difficult or impossible to remove without agreement from the benefiting party, which may not always be identifiable or willing to negotiate.

Access rights: Legal access to public roads is not always guaranteed even when physical access exists. Sites reached via private roads or rights-of-way should be carefully examined—you may need to verify that access rights are sufficient for construction traffic and future residents, and that maintenance obligations are clearly defined.

Liens and encumbrances: Mortgages, tax liens, judgment liens, or mechanics liens typically need to be discharged at settlement. However, understanding these encumbrances early could reveal distressed sellers, complicated ownership structures, or potential settlement delays. New owners generally remain liable for undischarged encumbrances, so verification that all will be cleared is typically essential.

Contamination notations: Some jurisdictions maintain contaminated sites registers that may be noted on title. The Victorian EPA, NSW EPA, and other state environmental authorities maintain registers that should be checked separately from title searches. Contamination remediation costs can range from tens of thousands to hundreds of thousands of dollars, potentially rendering a project unviable.

State-by-state Australian title system comparison

Australia’s eight states and territories all operate under variations of the Torrens title system, but with different legislation, processes, costs, and turnaround times that developers should understand when planning acquisition timelines and budgets.

Land registry quick reference

Critical state differences for developers

Whilst all jurisdictions operate under the Torrens title system’s basic principles—the mirror principle (register reflects true ownership), curtain principle (don’t look behind the register), and indemnity principle (state guarantee against defects)—several state-specific considerations may affect your development due diligence approach.

Victoria’s Section 32 requirements: Under the Sale of Land Act 1962, Victorian vendors must provide a Section 32 Vendor Statement before a purchaser signs the contract. This mandatory disclosure document must include the Certificate of Title, zoning and overlay information, building permits from the past seven years, certificates from multiple authorities (Council, water authority, VicRoads, State Revenue Office), and owners corporation certificates for strata properties.

For developers, the Section 32 could reveal previous development attempts, building permit history indicating constraints, and overlay information affecting future development potential. A defective Section 32 may give purchasers rescission rights, whilst proper review of provided certificates could identify red flags early. The document remains valid for three months, and preparation typically costs $500 to $1,500 through a lawyer or conveyancer.

Queensland’s new Property Law Act 2023: Queensland recently modernised its property legislation, which developers operating in that jurisdiction should understand. The Property Law Act 2023 consolidates various property law provisions and may affect development site acquisitions. Electronic conveyancing through PEXA became mandatory for certain transactions in Queensland from February 2023.

ACT’s Crown lease system: Unlike other jurisdictions where freehold title is standard, the Australian Capital Territory predominantly operates on a Crown lease system with 99-year leases. This fundamentally affects development structuring, financing, and long-term planning. Developers in the ACT may need to understand lease extension processes, development conditions attached to leases, and how lease terms affect project feasibility and exit strategies.

Western Australia’s recent reforms: Landgate abolished duplicate Certificates of Title in August 2023, moving entirely to electronic certificates. Whilst this modernisation may streamline some processes, developers should verify that all parties in a transaction understand the implications and that financing arrangements accommodate electronic-only certificates.

PEXA integration status: The Property Exchange Australia (PEXA) electronic conveyancing platform is now mandatory for most transactions in NSW, Victoria, Queensland, Western Australia, and South Australia, with Tasmania, Northern Territory, and ACT also offering PEXA services. This generally accelerates settlement timelines but requires that your legal representatives are PEXA-registered subscribers. Electronic settlement could reduce transaction times by several days compared to traditional paper-based processes.

Development site red flags in title searches

Certain title issues may represent minor inconveniences requiring straightforward resolution, whilst others could fundamentally undermine project viability. Recognising these red flags early might help you decide whether to proceed, renegotiate, or walk away before incurring substantial investigation costs.

Easements affecting buildable area

Easements represent one of the most common title complications affecting development feasibility. The critical question is typically not whether easements exist, but whether they conflict with your intended building placement and density.

A drainage easement along a rear boundary might be accommodated within required setbacks and landscaped areas, having minimal impact on yield. However, an easement bisecting your development footprint could force redesign, reduce unit count, or render the site unviable for your intended use. The easement width, above-ground or below-ground infrastructure, and maintenance requirements all factor into this assessment.

Removal or relocation of easements may be possible but typically costs $2,000 to $10,000 and requires agreement from the benefiting authority or property owner. Utility authorities may be particularly reluctant to relocate easements containing critical infrastructure, and the approval process alone could add three to six months to your timeline.

Restrictive covenants limiting development

Covenants are typically more problematic than easements because they often cannot be removed without consent from all benefiting parties, who may be difficult to identify or unwilling to negotiate. A covenant restricting your site to single-dwelling residential use might prevent your intended multi-unit development regardless of zoning allowances.

Height restrictions, architectural style requirements, building material specifications, or density limitations in covenants may override council planning schemes. Before assuming you can remove a covenant, legal advice regarding the enforceability, identifying benefiting parties, and realistic negotiation prospects is typically essential.

Some covenants may have lapsed due to fundamental changes in neighbourhood character or may be unenforceable due to lack of identifiable beneficiaries, but these determinations generally require legal expertise rather than assumptions.

Access complications

Physical access to a site doesn’t guarantee legal access. Sites accessed via private roads, shared driveways, or rights-of-way should be carefully examined for several potential issues that might affect development viability.

First, verify that the access easement or right-of-way is sufficient width for construction vehicles, fire brigade access, and future resident needs. An easement adequate for single-family access might be insufficient for multi-unit development requirements under building codes or council standards.

Second, understand maintenance obligations and cost-sharing arrangements with neighbouring properties sharing the access. Disputes over maintenance responsibilities could delay your development or create ongoing ownership issues for your purchasers.

Third, confirm that access rights extend to your intended use. Some rights-of-way may be limited to specific purposes or granted only to original grantees, potentially not transferring to new owners or new uses. Landlocked properties without adequate legal access may require easement by necessity applications, which can take six to twelve months and may not be guaranteed.

Environmental contamination indicators

Whilst contamination may not always appear directly on title, certain site histories should trigger environmental investigation. Previous industrial, commercial, or agricultural use—particularly involving chemicals, fuel storage, dry cleaning, manufacturing, or waste handling—typically warrants at least a Phase I environmental assessment.

Some jurisdictions maintain contaminated sites registers that should be checked separately from title searches. The NSW EPA’s contaminated land register, Victorian EPA’s priority sites register, and similar state databases may identify known contamination that could require remediation costing hundreds of thousands of dollars.

Phase I environmental assessments typically cost $2,000 to $5,000 and involve historical research and site inspection without soil sampling. If concerns are identified, Phase II assessments with actual testing might cost $5,000 to $20,000 or more. Remediation costs vary enormously depending on contamination type and extent—from $20,000 for minor soil contamination to $500,000 or more for extensive remediation.

As a general rule, if contamination remediation costs would exceed 10% to 15% of your total project budget, the site might not be viable unless you can negotiate substantial price reductions reflecting this burden.

Ownership complications

Clear, marketable title with a single registered proprietor typically facilitates straightforward transactions. Several ownership structures might complicate acquisitions and warrant additional investigation or specialist legal advice.

Multiple registered proprietors might represent family trusts, partnerships, or deceased estates. Deceased estate sales may require probate grants and agreement among multiple beneficiors, potentially extending timelines by three to twelve months. Companies as registered proprietors should be checked via ASIC searches to verify corporate status, directors, and whether the company is active and properly maintained.

Caveats on title may indicate disputes, pending legal actions, or unresolved financial claims. Whilst some caveats represent legitimate interests (such as purchaser caveats following contract exchange), others might signal litigation that could delay or prevent settlement. Understanding the caveat’s nature and likely resolution timeframe is typically essential before proceeding.

Properties subject to Family Court orders, bankruptcy proceedings, or other legal processes may be unmarketable or subject to third-party claims that could derail your acquisition. These situations generally require specialist legal advice to assess risk and viability.

Cost implications: remediation versus walking away

Understanding when title or due diligence issues justify project abandonment versus negotiated resolution requires balancing remediation costs and timeline delays against overall project economics.

Resolution cost ranges by issue type

Different title complications typically involve different cost ranges and resolution timeframes, which should factor into your decision-making:

Minor issues (2-4 weeks, $1,000-$5,000): Simple lien discharges, correction of minor title errors, release of expired caveats, or straightforward easement documentation might be resolved relatively quickly and inexpensively. These typically don’t justify walking away from an otherwise viable project.

Moderate issues (1-3 months, $5,000-$20,000): Easement modifications requiring utility authority negotiation, release of some covenants with identifiable beneficiaries, minor boundary adjustments, or Phase I environmental assessments fall into this category. Resolution timelines and costs are predictable enough to incorporate into project planning if the site otherwise meets your requirements.

Major issues (3-12+ months, $20,000-$100,000+): Complex contamination remediation, litigation to remove disputed encumbrances, resolution of ownership disputes in deceased estates, significant access easement creation, or covenant removal requiring multiple beneficiary agreements might require substantial time and cost. These warrant careful analysis of whether the delayed timeline and costs still support project viability.

Deal-breakers (unresolvable or >15% of project value): Some issues may simply be uneconomic to resolve or technically impossible. Contamination requiring hundreds of thousands in remediation, covenants that cannot be removed preventing your intended development, inadequate access that cannot be created, or fundamental planning overlay restrictions typically warrant walking away unless extraordinary price discounts reflect these burdens.

The 10-15% rule for remediation viability

A useful rule of thumb suggests that if resolution of title or environmental issues would exceed 10% to 15% of your total project development budget, the site might not be viable unless you can negotiate purchase price reductions that offset these costs plus contingency for overruns.

For example, if your development budget is $2 million including acquisition, and you discover contamination requiring $300,000 remediation (15% of budget), the site might only remain viable if the vendor reduces the purchase price by at least $300,000—and potentially more to compensate for the delay and risk of cost overruns.

With Feasly’s feasibility software, you could model different scenarios including remediation costs, delayed development timelines, and adjusted acquisition prices to determine whether a site remains viable under various assumptions about resolution costs and timeframes.

Hidden costs revealed through due diligence

Beyond direct remediation costs, several categories of expense might be revealed through thorough investigation that weren’t apparent from basic title review:

Off-site improvement obligations: Council requirements for road widening, traffic signals, utility extensions, or infrastructure contributions might add $50,000 to $500,000 or more to your project. These obligations typically appear through development application processes rather than title searches, but thorough preliminary discussions with council may reveal likely requirements.

Geotechnical surprises: Shallow rock requiring blasting, high water tables necessitating dewatering systems, poor soil bearing capacity requiring deeper foundations, or contaminated groundwater might add $20,000 to $200,000+ in unforeseen construction costs. Geotechnical investigations typically cost $5,000 to $15,000 but could prevent much larger budget blowouts.

Extended carrying costs: Timeline delays to resolve title issues, contamination remediation, or planning complications could add months or years to your holding period. Interest costs, council rates, insurance, and foregone opportunity costs during these delays might exceed the direct remediation costs.

Municipal fees and levies: Development contributions, infrastructure levies, community facilities charges, and various other fees vary dramatically by council and project type. These might range from $5,000 per dwelling to $30,000 or more in growth areas with significant infrastructure requirements.

Assembling your development due diligence team

Property development acquisitions typically require specialist professional expertise beyond what residential purchasers might need. Understanding which professionals to engage at different due diligence stages could help you spend investigation budgets efficiently whilst ensuring thorough risk assessment.

Lawyers versus conveyancers for development

For development site acquisitions, engaging a property lawyer rather than a licensed conveyancer is typically advisable despite the cost differential. Whilst conveyancers may handle straightforward residential transactions competently and cost-effectively, development acquisitions involve complexity that generally requires full legal qualifications.

Property lawyers can provide advice on complex title issues, negotiate easement modifications, draft development agreements, advise on subdivision structuring, represent you in disputes or litigation, and provide comprehensive commercial advice extending beyond the conveyancing transaction. Conveyancers are typically limited to standard conveyancing processes and cannot represent clients in court or provide advice on complex legal matters.

The cost differential might range from $500 to $1,500 additional for legal representation, but this investment is typically justified given the substantially higher values and complexity of development transactions. For multi-million dollar projects, this represents a minor incremental cost for significantly enhanced expertise and protection.

Licensed surveyors and their critical role

Engaging a licensed surveyor early in your due diligence process could prevent costly mistakes regarding buildable area, boundary locations, and easement impacts. Surveyors can prepare cadastral surveys showing legal boundaries, existing improvements, easements, and any encroachments that might affect your development.

For subdivision projects, surveyors prepare the subdivision plans required for registration, coordinate with utility authorities regarding easement locations, and ensure compliance with surveying standards. Survey costs typically range from $2,000 to $8,000 depending on site complexity, but this expense could prevent acquisition of sites with inadequate developable area or unforeseen constraints.

Town planners for entitlement assessment

Town planners specialise in interpreting planning schemes, zoning overlays, and development controls that might not be apparent from title documents alone. Engaging a planner during due diligence could help you assess realistic approval prospects, identify potential planning objections, and understand likely approval timeframes.

Planners can prepare preliminary development concepts to test yield assumptions against planning controls, identify whether planning scheme amendments or variations might be needed, assess community consultation requirements, and provide realistic approval timeline estimates. This expertise could prevent acquisition of sites where your intended development cannot secure approval regardless of title clarity.

Environmental and geotechnical consultants

For sites with previous commercial or industrial use, engaging environmental consultants to conduct Phase I assessments during due diligence is typically prudent. These assessments cost $2,000 to $5,000 and could identify contamination risk before you’re contractually committed.

Similarly, geotechnical engineers can conduct preliminary assessments of soil conditions, groundwater levels, and subsurface constraints that might affect construction costs. Whilst detailed geotechnical investigations might be deferred until after acquisition, preliminary advice during due diligence could identify major red flags warranting closer investigation or price negotiation.

Development-specific title scenarios

Beyond standard property purchases, developers may encounter several specialised title situations that require different approaches and expertise to navigate successfully.

Subdivision and consolidation requirements

Creating multiple titles from one property (subdivision) or combining multiple titles into one (consolidation) involves distinct processes, timelines, and professional requirements that developers should understand when planning projects.

Subdivision processes: Converting a single title into multiple lots typically requires council approval of a subdivision plan (which may involve months of assessment), preparation of subdivision plans by a licensed surveyor meeting state-specific standards, provision for utility access to all new lots, and registration of the subdivision with your state’s land registry. The entire process might take three to six months from initial application to final registration, though complex subdivisions could take longer.

Each new lot created through subdivision must typically have legal access to a public road, adequate provision for utilities (water, sewer, electricity, telecommunications), and compliance with minimum lot size and dimension requirements in your planning scheme. Council may impose conditions requiring road construction, utility upgrades, or other infrastructure before subdivision approval.

Consolidation processes: Combining multiple titles into one consolidated title might simplify development, reduce council assessment complexity, or facilitate financing arrangements. Consolidation typically requires proving that parcels are contiguous, have been under common ownership since a specified date, and have been used jointly.

Licensed surveyors must prepare consolidation plans, statutory declarations may be required regarding ownership history and use, and the process typically takes two to three months once documentation is prepared. Consolidation is generally simpler than subdivision but still requires professional expertise and proper process adherence.

Strata title for unit developments

Strata title schemes allow individual ownership of lots (such as apartments or townhouses) combined with shared ownership of common property through an owners corporation or body corporate. Developers creating strata schemes face specific obligations and potential ongoing liabilities.

Strata plan requirements: Preparing a compliant strata plan requires a licensed surveyor to prepare plans meeting state-specific standards, a valuer’s certificate determining unit entitlements (each lot’s proportional share of ownership), proper delineation of lot boundaries and common property, and compliance with relevant strata legislation in your state.

Strata plans must be registered with the land titles office before individual lots can be sold. Plan preparation typically costs $3,000 to $10,000 depending on complexity, whilst registration fees vary by state. Errors in strata plans can affect all properties and potentially expose developers to liability, so professional expertise is typically essential.

Developer obligations in strata schemes: Beyond plan preparation, developers generally must establish the initial owners corporation or body corporate, prepare initial by-laws governing use of common property, establish administrative funds and sinking funds for maintenance, arrange building insurance for common property, and potentially provide maintenance plans spanning several years.

Some jurisdictions have introduced requirements for longer-term maintenance planning and documentation that extends developer obligations beyond settlement. Understanding these requirements early in project planning could affect feasibility calculations and exit strategies.

Victoria’s Section 32 considerations for developers

Victorian developers should understand Section 32 Vendor Statement requirements from both sides—as purchasers conducting due diligence on acquisition sites, and as vendors when selling developed properties.

As purchasers: The Section 32 provided by your vendor should include building permit history for the past seven years, which may reveal previous development attempts, approvals, or constraints. Zoning and overlay information helps verify council planning controls, whilst certificates from various authorities (council, water, VicRoads, State Revenue Office) could identify rates arrears, unresolved planning breaches, or easement documentation.

Any defect in the Section 32 could provide grounds for price reduction or rescission, so careful review by your lawyer is typically warranted. Building permit history particularly warrants attention—previous denials might indicate constraints relevant to your intended development.

As vendors: When subdividing or selling developed units, you’ll need to prepare Section 32 statements that could expose you to liability if defective. Ensuring accurate disclosure of all material matters, obtaining current certificates from relevant authorities, and professional preparation through solicitors typically provides protection against subsequent purchaser claims.

Section 32 documents remain valid for three months, so timing their preparation relative to expected marketing and settlement is typically important to avoid having to prepare updated statements.

Critical path: timing title searches in development projects

Understanding when to conduct different levels of title investigation throughout your development timeline could help you sequence spending efficiently whilst identifying deal-breakers before incurring substantial costs.

Pre-option stage: preliminary assessment

Before taking options or making offers, a preliminary title search costing $7.35 to $220 depending on jurisdiction could identify obvious red flags such as major easements, restrictive covenants, or ownership complications. This minimal investment might save you from progressing sites that simply won’t work for your intended development.

At this stage, you’re typically making a quick go/no-go decision based on title fundamentals, site location, and preliminary yield calculations. Investing in detailed investigations before confirming basic viability and interest from the vendor might not be warranted.

Post-contract execution: comprehensive investigations

Once you have a contract with appropriate due diligence conditions (typically 30 to 90 days for development sites), comprehensive title searches, ALTA surveys, environmental Phase I assessments, and geotechnical preliminary studies should typically proceed. This is when you’re investing $10,000 to $50,000 or more in professional investigations to identify issues that might warrant price renegotiation or contract termination.

The sequencing of investigations matters—conducting inexpensive investigations that might identify deal-breakers before spending on detailed studies could prevent wasted capital. For example, a Phase I environmental assessment costs $2,000 to $5,000 and might identify contamination concerns before you spend $15,000 on detailed geotechnical investigations.

Pre-development application: verification against proposal

Before lodging development applications, verify that your proposed development complies with all title restrictions in addition to planning requirements. An easement that seemed minor during acquisition might conflict with your detailed architectural plans, requiring redesign before application.

Surveyors should verify that your proposal respects easement locations, setback requirements, and site boundaries. Discovering conflicts during DA assessment could delay approval by months whilst you redesign, or worse, necessitate significant yield reductions that undermine project feasibility.

Pre-finance approval: title insurance consideration

When arranging development finance, some lenders may require title insurance policies protecting against undiscovered defects, survey errors, or fraud. Whilst title insurance is less common in Australia than some other jurisdictions due to the Torrens system’s state guarantee, complex commercial developments or properties with known issues might warrant insurance coverage.

Title insurance premiums are typically paid once and might cost 0.5% to 1% of property value for enhanced coverage. Discussing insurance requirements with your lender early could prevent last-minute scrambles to arrange coverage before settlement.

Pre-settlement: final title update

In the 24 to 48 hours before settlement, a final title search should verify that no new encumbrances have been registered since your comprehensive search during due diligence. Whilst new mortgages or caveats appearing immediately before settlement are uncommon, this final check provides assurance and might identify issues requiring settlement delay if unresolved.

Frequently asked questions for property developers

How does development due diligence differ from residential property purchases?

Development due diligence typically requires 150+ investigation items compared to approximately 20 for residential purchases, extends over 60 to 90 days rather than 30 to 45 days, and focuses on what can be built rather than existing property condition. Development investigations usually involve multiple specialists including property lawyers, surveyors, town planners, and engineers, whilst residential purchases might require only a conveyancer and building inspector.

The cost differential is also typically substantial—residential due diligence might cost $1,000 to $3,000 total, whilst development investigations could require $20,000 to $100,000 depending on site complexity and previous use. However, this investment is generally proportional to project scale and could prevent acquisition of sites with fundamental feasibility constraints.

What title issues most commonly affect development feasibility?

Easements affecting buildable area, restrictive covenants limiting density or use, access complications requiring expensive resolutions, environmental contamination requiring remediation, and ownership disputes delaying settlement represent the most common title-related feasibility impacts.

Easements particularly warrant careful assessment—a utility easement bisecting your intended building footprint might reduce yield by 15% to 25% or require expensive relocation. Covenants may be even more problematic because they often cannot be removed without beneficiary agreement and might override zoning allowances that otherwise permit your development.

Should I use a conveyancer or lawyer for development site acquisition?

Property lawyers rather than licensed conveyancers are typically advisable for development acquisitions despite higher costs. Development transactions involve complexity requiring full legal qualifications—including advice on easements, covenants, development agreements, subdivision structuring, and potential dispute resolution that conveyancers cannot provide.

Whilst conveyancers might charge $800 to $1,500 for straightforward transactions, property lawyers typically cost $1,500 to $3,000 but provide substantially broader expertise. For multi-million dollar development projects, this differential represents a minor cost for significantly enhanced protection and advice.

How long should I allow for development due diligence?

A minimum of 60 to 90 days is typically appropriate for development site due diligence, though complex sites with brownfield contamination, multiple titles requiring consolidation, or significant easement complications might require four to six months.

Sequencing investigations appropriately could help you identify deal-breakers early—conducting preliminary title searches and Phase I environmental assessments before expensive geotechnical investigations might prevent wasted costs if major issues are discovered. Building flexibility into your contract terms for due diligence extensions if complex issues are identified could provide necessary time for thorough investigation.

Do I need title insurance in Australia?

Title insurance is generally less common in Australia than in some other jurisdictions because the Torrens title system provides state guarantee of registered interests. However, developers might consider title insurance for complex commercial transactions, properties with known title defects that cannot be resolved pre-settlement, brownfield sites with contamination concerns, or when required by lenders.

Title insurance typically covers fraud, forgery, survey errors, unknown easements, and gaps in title chain. Premiums might range from 0.5% to 1% of property value and are paid once rather than annually. Whether insurance is warranted depends on your risk tolerance and specific site circumstances, which your property lawyer could help assess.

How do easements impact development plans and yield?

Easement impact depends on width, location, above-ground or below-ground infrastructure, and whether they conflict with your intended building placement. An easement along a boundary might be accommodated in setbacks and landscaping with minimal yield impact, whilst an easement through your development footprint could require redesign reducing unit count by 10% to 25% or more.

Licensed surveyors should provide ALTA surveys clearly showing easement locations, widths, and any existing infrastructure. Architects can then design around constraints, though this might increase design complexity and costs. Removing or relocating easements is sometimes possible but typically costs $2,000 to $10,000 and requires utility authority agreement, which may take three to six months to negotiate.

What’s the difference between Torrens title and overseas systems?

The Torrens title system used throughout Australia provides greater certainty than the deed registration systems used in many other jurisdictions including most of the United States. Under Torrens principles, the register is the definitive record of ownership (mirror principle), past transactions generally need not be investigated (curtain principle), and the state provides compensation for loss due to registration errors (indemnity principle).

This state guarantee means title insurance is less commonly required in Australia, whilst overseas purchasers might routinely need insurance policies protecting against title defects. The system was originated in South Australia in 1858 and has been adopted throughout Australia and in various other jurisdictions worldwide.

Can restrictive covenants override planning approvals?

Yes, restrictive covenants may prevent development that would otherwise be permitted under zoning and planning schemes. A covenant restricting your property to single-dwelling residential use could prevent multi-unit development regardless of council zoning allowing higher density.

Covenants are private agreements registered on title rather than planning controls, so council approval doesn’t remove covenant obligations. Removing covenants typically requires agreement from all benefiting parties, who may be difficult to identify or unwilling to negotiate. Some covenants may have become unenforceable due to fundamental neighbourhood changes, but this determination requires legal advice rather than assumptions.

What are typical resolution timeframes for common title issues?

Minor issues such as simple lien discharges or correction of administrative errors might be resolved in two to four weeks. Moderate complications including easement modifications or covenant releases with identifiable beneficiaries typically take one to three months. Major issues such as contamination remediation, ownership dispute resolution, or complex access creation might require three to twelve months or longer.

Understanding likely resolution timeframes helps you assess whether proceeding with acquisition makes sense—if resolution would delay your development by twelve months and add $50,000 in costs, you might negotiate equivalent price reductions or walk away to pursue better opportunities.

How do state title systems differ for developers across Australia?

All Australian jurisdictions operate under the Torrens title system, but with different legislation, costs, turnaround times, and specific requirements. Victoria offers the fastest and cheapest title searches ($7.35, five minutes), whilst the ACT has the most expensive searches (approximately $220) and unique Crown lease tenure rather than freehold.

Victoria requires mandatory Section 32 vendor statements, Queensland recently introduced the new Property Law Act 2023, Western Australia abolished duplicate titles in August 2023, and most states have made electronic conveyancing through PEXA mandatory or strongly encouraged. Understanding your project state’s specific requirements and timelines could help you plan acquisition schedules and budget accordingly.