If you are the owner of land where a project of 3 or more residential dwellings is being built, even if another person is managing the project, you will need to obtain a property developer licence to sell dwellings off-the-plan.
The scenario below illustrates how the licensing requirements under the Property Developers Act 2024 apply in a small-scale suburban redevelopment.
Scenario
- A landowner owns a single residential block of land with an existing detached house on it.
- They have no prior experience in building or property development.
- They are an individual, not a company.
- They have entered a development agreement with a property developer to demolish the existing dwelling and build 3 new townhouses on the land.
- The property developer holds a property developer licence and will coordinate all aspects of the development, including:
- Obtaining project finance for the project;
- Overseeing all aspects of design and construction, including engaging design professionals, engineering services, and ensuring statutory compliance obligations are met.
- The Developer will have significant interest financially over the land as part of their contractual arrangement with the landowner.
- The townhouses will be offered for sale off-the-plan.
The following table illustrates who will need a licence for this residential development scenario.
| Activity | Who needs a licence | Why a licence is required |
|---|---|---|
| Sell dwellings off-the-plan | The landowner | Contract for off-the-plan sale will be between the landowner and the purchaser. |
| Submit an application for development approval | The developer | For the purposes of the Planning Act 2023, the proponent for a project does not have to be the landowner. |
| Apply for building approval (BA) | The developer | The owner of the land applies for a BA (or has someone apply on their behalf), but it’s the person arranging for the building work to be carried out that needs the licence, in this case the developer. |
| Conducting building work | The developer | Each person arranging for the building work needs a licence, which does not necessarily have to be the landowner. |
| Obtain certificate of occupancy | The developer | As above. |
