The often complex life cycle of a new development can present a variety of challenges for a developer which, if not dealt with properly, could require costly changes or even stop a development in its tracks. In our four part series we take you through the various potential issues at each stage of a new development, with this first article looking at site acquisition.

Title defects
One of the first things to consider is any title defects, keeping in mind that these are not always obvious.
◆ Are you certain you know who owns the land, and that there are no third parties who could claim ownership?
◆ Are you fully aware of all charges and liens on the property and have you ensured these will be removed upon completion?
◆ Are you in fact buying all of the land you think you are? This may sound obvious, but for a large plot of land including multiple titles, plans should be scrutinised as they do not always reflect the position on the ground.

A seller’s duty to disclose defects in title should not negate careful investigation by a developer. There may be issues of which the seller is genuinely unaware. Or a seller could hide the true position. While you may have a claim against the seller it will cost time and money to sort and may be unresolvable.

However, title defects do not necessarily cause serious doom and gloom. It may be possible to resolve a defect simply (and cheaply) with an indemnity policy.