An Overview of Buying Land via Auction from the ACT Government

The Land Development Agency, commonly
known as the LDA, releases land in the ACT by ballots, over the counter and auction. This video provides an overview of our process for buying land at an LDA
auction. Each event that we have has a separate way for registering. So the best thing to do is to actually visit our website. On the website they will have a list of instructions that talk you through what you need to do for that specific event. To participate in an LDA sales event, it’s important that you
register within the advertised time frame. If you have registered for an
LDA event before, you will still need to register for each separate auction. To register to take part in an LDA auction you will need to provide us full details of yourself and anyone else that
you’d like on the contract for sale which will be subsequently used to
produce the crown lease. This includes your full legal name and also your address. We will require proof of identity that matches these documents at the time of registration. If you can’t attend the auction event, you can appoint someone as your agent to bid and purchase on your behalf. There is an appointment of agent form available on the LDA website. it’s important that you download this and
complete all the relevant information including the signatures. Your agent will also need to bring a copy of your identification as well as their identification on the day. You will only need to register once for each event and there’s no limit to the number of blocks you can purchase under their
registration For larger events, we provide what’s called an order of sale. This gives an indication of the time that we expect each group of blocks
to be offered. For smaller events, half an hour before the event is usually
sufficient. If you have ever seen an auction, taking
part in LDA event is very similar. You will be provided with a bidder’s number – this is the number you need to hold up to indicate your bid. Bidding’s will will
continue until no further bids are received, at which point the auctioneer
will call the bid three times and the hammer will fall. That becomes purchase
price for the block and if you’re successful, you be required to exchange
contracts immediately and pay a deposit. The LDA accepts payment by cheque, credit card, bank guarantee or deposit bond. however the amount of the deposit
required varies from event to event so make sure you check the sales
documentation relevant for your event to find out how much is required. If you’re successful, you will be required to pay a deposit immediately on the fall of the hammer. Make sure you bring with you a bank cheque, your cheque book or perhaps check with your bank to ensure that
your credit limit will allow you to transfer that amount of money on the day. Even though you have the funds in your account, banks require pre-authorization
to allow transfers of significant sums. If you’re intending to pay by bank cheque, we suggest you get your cheque made out to the maximum amount you are prepared to pay for a block and if that is more than the amount required as a deposit, the LDAcan
arrange for either refund or for that amount to be credited toward your
payment at settlement. Please remember the LDA does not accept cash and you will not have an opportunity to leave the venue to get another form of payment Yes, stamp duty is payable on all land
transactions in the ACT and is due 90 days from exchange, or prior to
settlement, whichever is earlier. ACT revenue are responsible for collecting duty in the ACT and their website contains a calculator that will assist
you in working out how much stamp duty may be payable and also details of any
concessions you may be eligible for such as the First Home Buyers Grant. No, Land Rent is not available on blocks offered at auction. Settlement will occur once the land is ready to build on. You will be provided with your settlement
statement at least 30 working days prior to your settlement date. To find out the
contract date range the time frame in which we estimate the blocks will be
available to settle on you should refer to the sales documentation, or the interactive map on the LDA website. It’s important that you inform yourself about the block that you’re intending to purchase. The best way to do
this is to visit the documentation on the LDA’s website this includes what’s
called a housing development guide. This contains all the information pertinent
to an estate including details of any easements, fill, contours or setbacks
that may affect your build. The Housing Development Guide is attached to your
contract for sale and it’s important you are familiar with its requirements The LDA is here to assist you through your purchase, so you should contact us if you have any questions relating to the sales process or the estate you’re
looking to purchase in. You can contact us by calling 1800 777 952 or by sending an email to [email protected]

Maurice Vega

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