Transferring a unit still under developer control: who to instruct

Most buyers discover too late that transferring a sectional title unit under developer control involves different risks and moving parts than a standard resale. They assume their conveyancer will flag the specifics—but without clear instruction, many don't. A developer-controlled unit sits in a grey zone: the developer still holds governance sway, often hasn't handed over full records, and may face outstanding obligations. Your conveyancer needs explicit direction to dig into these layers, or critical issues slip through to closing.

Spotting when the developer still has control

A unit is "under developer control" when the developer retains voting rights on the body corporate, usually because not enough units have sold or transferred into resident hands. This matters because the developer can make decisions—like approving levies, agreeing to special assessments, or delaying handover of schemes—that affect your purchase and your long-term costs. Check the body corporate's latest minutes or ask your agent directly: does the developer hold more than 50% of voting rights? If yes, you need a conveyancer who understands the compliance and disclosure gaps that typically exist at this stage. Some schemes are five years old and still partly developer-controlled; others hand over within months. The timing shapes what you need to verify.

What developers often don't hand over cleanly

Developer-controlled schemes rarely have their full record set in place. Electrical certificates, water compliance reports, lift maintenance contracts, and building defect registers may still be scattered or incomplete. Your conveyancer should request a list of what's outstanding and demand sight of any provisional occupation certificates or compliance letters. Ask them to confirm in writing that the developer is liable for any defects discovered after you take transfer—this isn't automatic. Some developers build in a defects liability period; others disappear. Your conveyancer must also chase whether there are retention funds held by the developer for outstanding work, and if so, whether that money is guaranteed to be released or if it's at risk if the developer faces financial trouble. This is the ground most buyers miss: they assume the building is "finished" because they're buying a unit, when in fact the common property may still be remedial work away from full hand-over standards.

Instructing your conveyancer on developer-specific checks

When you brief your conveyancer, be explicit. Hand them a short checklist:

• Confirm the developer's current voting percentage on the body corporate and when it's expected to drop below 50%
• Demand the defects liability clause from the original developer agreement and any warranties in place
• Ask for proof that all municipal services (water, electricity, sewerage) are registered in the body corporate's name, not the developer's
• Check whether the developer has funded a reserve fund or if that burden falls on the new owner base
• Verify that the body corporate has adopted its own rules and that the developer isn't imposing interim governance

Your conveyancer should report back on each point. If they brush past any of these or say "it's standard," push back. Developer-controlled schemes have their own standard, and it's not the same as a mature body corporate that's been running independently for years. A conveyancer who routinely handles these deals will know the friction points; one who treats this like a resale transfer will miss them.

Timing and disclosure before you commit

Once the developer's control drops, the body corporate takes full governance responsibility. This handover moment can trigger special levies, as the new resident board uncovers deferred maintenance or discovers the reserve fund is underfunded. Ask your conveyancer whether the handover date is imminent and whether the body corporate has signalled any planned levies tied to that changeover. If handover is within a year, factor in the risk that levies may jump. If the developer has committed to funding certain items after handover, ensure that's in writing and that your conveyancer has sight of it—oral promises dissolve fast. This disclosure step protects you from inheriting the developer's liabilities while they step back.

When you're ready to instruct a conveyancer for a developer-controlled transfer, look for someone who routinely handles these transitions on Strove. Ask directly: how many developer-controlled schemes have you transferred in the past year? What were the most common surprises you found? Their answer will tell you whether they've built the specialist toolkit you need.