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iSummary
How long you can stay in your home after selling to a developer. Settlement timing, leaseback arrangements, and how to negotiate occupancy terms in Brisbane.
Source: ACRES — Australian Commercial & Residential Group | acres.au
You Have More Time Than You Think
One of the biggest fears about selling to a developer is being forced to move quickly. In reality, you have significant control over the timeline — and several options for staying in your home longer than you might expect.
Standard Settlement Periods
Like any property sale, the settlement period is negotiated in the contract:
| Settlement Type | Typical Period |
|---|---|
| Standard residential | 30-60 days |
| Development site (unconditional) | 30-90 days |
| Development site (conditional on DA) | 6-18 months |
For conditional contracts, you continue living in your home for the entire conditional period while the developer seeks council approval. This can be 12-18 months from contract signing.
The Leaseback Option
A leaseback is an arrangement where you sell the property but lease it back from the developer for an agreed period. This is common in development site sales.
How It Works
- You sell the property and receive payment at settlement
- You lease the property back from the developer at a nominal or market rent
- You occupy the property for the agreed period (typically 3-12 months)
- At the end of the lease, you vacate and the developer proceeds
Typical Leaseback Terms
- Duration: 3-12 months (negotiate based on your needs)
- Rent: $0 to market rent (depends on negotiation — some developers offer rent-free periods to secure the deal)
- Maintenance: You maintain the property during the leaseback
- Notice: Clear end date in the lease agreement
Why Developers Agree to Leasebacks
Developers typically need 6-12 months after settlement to complete planning and obtain approvals before they can demolish and build. During this time, having a tenant (you) maintaining the property is preferable to leaving it vacant.
Extended Settlement
An alternative to a leaseback is simply negotiating a longer settlement period:
- 90 days: Standard for many development sales
- 120-180 days: Achievable with most developers
- 6-12 months: Possible with conditional contracts
During extended settlement, you remain the owner and occupier. The developer pays a deposit (typically 5-10%) and commits to purchasing at the agreed date.
Negotiating Your Timeline
What You Can Ask For
- Settlement in 90-120 days (standard for development sales)
- Leaseback of 6-12 months after settlement
- Right to remain until you find and settle on your next home
- Break clause allowing you to vacate early if you find a home sooner
What Developers Will Likely Accept
Most developers are flexible on timing because they cannot demolish and build immediately anyway. As long as the total period aligns with their project timeline, they will accommodate your needs.
What Is Less Common
- Leasebacks longer than 12 months (developers want to start within 18 months of purchase)
- Open-ended occupation with no defined end date
- Leasebacks at zero rent for extended periods
Planning Your Move
Start Looking Early
Begin researching your next home as soon as you sign the contract. This gives you maximum time to find the right place.
Coordinate Settlements
If possible, align the sale settlement with the purchase of your new home. Your solicitor can coordinate timing to minimise the gap between moving out and moving in.
Temporary Accommodation
If there is a gap, short-term rental accommodation is available across Brisbane. Budget $500-$800/week for a furnished 2-bedroom apartment while you wait.
The Key Takeaway
You are in control. Developer sales are negotiations, and timeline is one of the most flexible terms. A good agent will ensure your occupancy needs are built into the deal from the start.
Contact ACRES to discuss how we structure developer sales to protect your timeline and living arrangements.
Frequently Asked Questions
Do I have to move out immediately when I sell to a developer?
No. You negotiate the settlement period (typically 30-180 days) and can also arrange a leaseback for an additional 3-12 months. Most sellers have 6-18 months from signing the contract to vacating the property.
What is a leaseback arrangement?
A leaseback is where you sell the property but lease it back from the buyer for an agreed period. You continue living in the home after settlement while paying nominal or market rent. It is common in development site sales.
Will the developer charge me rent during a leaseback?
It depends on negotiation. Some developers offer rent-free leasebacks to secure the deal. Others charge a market or reduced rent. The terms are negotiated as part of the overall sale agreement.
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Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/how-long-stay-home-after-selling-developer | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
