What to Check Before Buying a Block of Land
Cost estimates only: Any building or upgrade figures in this guide are indicative, not fixed prices or quotes. Costs and inclusions vary by project, supplier, location and time. Confirm current written prices and specifications directly with your builder, suppliers and relevant trades.
Table of Contents
- 1. Legal Restrictions
- 2. Soil and Site Conditions
- 3. Orientation
- 4. Planning Controls and Overlays
- 5. Site Access and Services
- 6. Developer Requirements (New Estates)
- 7. Retaining Walls and Earthworks
- 8. Stormwater
- 9. The Title and the Contract of Sale
- Summary: The Complete Pre-Purchase Checklist
- Common Mistakes
Buying a block of land is the single most important decision in the home-building process. The block determines the orientation of your home, the site costs, the design options, and the hidden costs that can add tens of thousands of dollars to the build. Yet many buyers spend more time choosing the house design than checking the block.
This guide brings together everything you need to check before buying a block of land in Australia. It covers the legal restrictions, the physical characteristics, the planning controls, and the site costs that can affect the cost and feasibility of building your home. Use this as a checklist — if you can tick every item, you can buy with confidence.
1. Legal Restrictions
The first thing to check is the legal restrictions on the block — the easements, covenants, and caveats that are registered on the title.
- Obtain a copy of the title and the plan of subdivision. Check for easements, covenants, and caveats.
- Check for easements — these are areas of the block where you cannot build (e.g. drainage easements, sewer easements, powerline easements). Easements can limit where the house can be positioned.
- Check for covenants — these are restrictions on what you can build (e.g. minimum house size, required materials, prohibited features). Covenants can add cost and limit design freedom.
- Check for caveats — these are warnings that someone else has an interest in the land (e.g. a mortgage, a right of way, a contractual obligation).
- Check whether the block is subject to a building envelope (a defined area where the house must be built).
For a detailed explanation of easements, see our guide:
For a detailed explanation of covenants, see our guide:
2. Soil and Site Conditions
The soil and site conditions determine the slab design, the site costs, and the potential for hidden costs during construction.
- Commission a soil test (site classification) — this determines the soil reactivity (A, S, M, H1, H2, E, P) and the slab design required. Cost: $300–$800.
- Check the slope of the block — a sloping block may require cut and fill, retaining walls, and a more expensive slab design.
- Check for rock — if the site has shallow rock, excavation costs can be significant ($500–$2,000 per cubic metre).
- Check for fill — if the block has been filled (particularly uncontrolled fill), the fill may need to be removed and replaced, or the foundation may need to penetrate through the fill.
- Check the groundwater level — high groundwater can affect the slab design and may require dewatering during construction.
- Check for acid sulfate soils (if the block is in a coastal or low-lying area) — ASS can add $5,000–$30,000 in management costs.
- Check for contamination (if the block has an industrial history or is in a former industrial area) — contamination can add $10,000–$200,000+ in remediation costs.
3. Orientation
The orientation of the block determines the orientation of the house, which affects comfort, energy costs, and liveability.
- Check the direction the block faces — a north-facing block (street on the south side) is the best orientation.
- Check whether the block shape allows for a house design with north-facing living areas.
- Check for neighbouring buildings (existing or planned) on the south side that could cast shadows and block the winter sun.
- Check whether the block is on a south-facing slope (which reduces solar access).
- Consider the prevailing breeze direction and whether the house can be designed for cross-ventilation.
For a detailed explanation of orientation, see our guide:
4. Planning Controls and Overlays
Planning controls and overlays can restrict building, require specific construction, or add cost.
- Check the council's planning scheme for overlays — flood, bushfire, overland flow, acid sulfate soils, contaminated land, airport noise, transport noise.
- If the block is in a bushfire-prone area, commission a BAL assessment — the BAL rating can add $3,000–$80,000+ to the build cost.
- If the block is in a flood overlay, check the flood level and the required finished floor level — flood-related construction can add $5,000–$50,000+.
- If the block is in an overland flow path, check the flow depth and velocity — the building may need to be raised or have an open subfloor.
- If the block is near a major road, railway, or airport, check for acoustic requirements — acoustic treatment can add $5,000–$25,000+.
- Check the wind rating for the site — a higher-than-standard rating (N3+) can add $2,000–$15,000.
- Check for any council conditions that need to be satisfied before the building approval is issued.
5. Site Access and Services
Site access and the availability of services can affect the build cost and timeline.
- Check the driveway width and gradient — narrow or steep access can add $2,000–$10,000 in surcharges.
- Check whether the block is a battle-axe or rear access block — these can add $5,000–$15,000 in access surcharges.
- Check for overhead powerlines at the entry — these may need to be temporarily disconnected, adding $1,000–$5,000.
- Check whether all services are connected (water, sewer, electricity, gas, NBN) — if not, connection costs can add $2,000–$15,000.
- Check the sewer connection point — if the sewer is deep, the connection may require a pump, adding $5,000–$15,000.
- Check the water connection point — if the water main is on the far side of the road, the connection may be more expensive.
6. Developer Requirements (New Estates)
If you are buying in a new estate, check the developer's design guidelines and any estate covenants.
- Obtain a copy of the developer's design guidelines — these control the house design, facade materials, roof pitch, colours, and landscaping.
- Check the minimum house size — if it's larger than you planned, you may need a bigger (more expensive) design.
- Check the facade material requirements — if the builder's standard facade doesn't comply, the upgrade can add $3,000–$15,000.
- Check for corner lot requirements — corner lots may need additional facade treatment on the side wall, adding $5,000–$20,000.
- Check the design review process and timeline — the review can add 2–4 weeks to the build timeline.
- Check for a design review fee — some developers charge $500–$2,000 per submission.
For a detailed explanation of design guidelines, see our guide:
Developer Design Guidelines Explained →
7. Retaining Walls and Earthworks
If the block is sloping or requires cut and fill, check the retaining wall and earthworks requirements.
- Check whether the block requires cut and fill — this can add $5,000–$30,000 in earthworks costs.
- Check whether retaining walls are needed — these can add $2,000–$20,000+ depending on the length and height.
- Check whether the retaining walls are included in the builder's fixed price, a provisional sum, or an exclusion.
- Check whether boundary retaining walls are required by the council as a condition of the building approval.
- Check whether the excavated material can be reused on site — if it cannot (e.g. due to contamination or unsuitable material), the cost of removal and replacement can double.
8. Stormwater
Check the stormwater requirements for the block.
- Check whether the block can connect to the council stormwater system or needs on-site dispersion or detention.
- Check whether the council requires an on-site detention (OSD) system — this can add $8,000–$20,000+.
- Check whether the stormwater system is included in the builder's fixed site costs, a provisional sum, or an exclusion.
- If the block is sloping, check for additional drainage requirements (surface and subsurface drains).
9. The Title and the Contract of Sale
- Read the contract of sale carefully — check for any special conditions, sunset clauses, or subject-to clauses.
- Check the settlement date — if the block is not yet registered (in a new estate), the settlement may be delayed.
- Check whether the contract is subject to a soil test, finance, or due diligence — these clauses give you the right to withdraw if the checks reveal a problem.
- Check for any developer contributions or infrastructure charges that are payable on settlement.
- Check the title for any restrictions, easements, covenants, or caveats that could affect the build.
Summary: The Complete Pre-Purchase Checklist
Before you buy a block of land, make sure you have checked the following:
- Easements, covenants, and caveats on the title
- Soil test (site classification) — $300–$800
- Slope, rock, fill, and groundwater
- Orientation (north-facing is best)
- Neighbouring shadows (buildings on the south side)
- Bushfire overlay and BAL rating (if applicable)
- Flood overlay and flood level (if applicable)
- Overland flow path (if applicable)
- Acid sulfate soils (if coastal or low-lying)
- Contamination (if industrial history)
- Acoustic requirements (if near a road, railway, or airport)
- Wind rating (if exposed, elevated, or coastal)
- Site access (driveway width, gradient, battle-axe)
- Services (water, sewer, electricity, gas, NBN)
- Developer design guidelines (if a new estate)
- Retaining walls and earthworks
- Stormwater requirements (connection, dispersion, or OSD)
- Contract of sale (special conditions, subject-to clauses)
Tip
Common Mistakes
- Not checking the title for easements and covenants before buying.
- Not commissioning a soil test before signing the building contract.
- Not checking the orientation — a poorly oriented block cannot be fixed by a good house design.
- Not checking for overlays (bushfire, flood, overland flow, noise) that can add tens of thousands of dollars.
- Not checking the developer's design guidelines before buying in a new estate.
- Not checking site access — narrow or steep access can add thousands in surcharges.
- Not including subject-to clauses in the contract of sale (e.g. subject to soil test, subject to finance).
- Spending more time choosing the house design than checking the block.
Frequently Asked Questions
Practical Takeaway
Buying a block of land is the single most important decision in the home-building process. The block determines the orientation, the site costs, the design options, and the hidden costs that can add tens of thousands of dollars to the build. By checking the title, soil, orientation, overlays, access, services, developer requirements, and stormwater before buying — and including subject-to clauses in the contract of sale — you can buy with confidence and avoid the hidden costs that catch buyers out.
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