What you are actually signing
The word package suggests a single purchase. In most cases it is two. You buy a block of land from a developer or land owner under a contract of sale. Separately, you engage a builder under a building contract to construct a home on that block. The two are marketed together, priced together and often negotiated together, but legally they are different agreements with different parties.
There is another product that looks similar: a completed or nearly completed home sold under one contract. That is a single purchase and it is treated differently, including for duty. Know which of the two you are being offered.
Why the split matters
- Duty. Where the land and the build are separate contracts, duty is generally assessed on the land value and not on the finished home. The detail varies by state, which we cover in stamp duty on house and land.
- Finance. The lender funds the land at settlement and the build in stages, and it needs both contracts to approve the loan. See how a construction loan draws down.
- Timing. The land contract has its own settlement date. The building contract has its own start and completion dates. If the land is not yet titled, each timeline depends on the other. See titled land versus registration pending.
- Responsibility. The land seller is responsible for delivering the block as described. The builder is responsible for the house. A problem with the site, such as fill or slope, can fall between the two unless it is dealt with up front.
The clauses that connect the two
- Finance clauses. Both contracts should be conditional on the same finance approval, with dates that line up.
- Site costs. The building price should say whether site costs are fixed or an estimate, and what happens if the soil test comes back worse than expected.
- Estate requirements. Many estates have design guidelines and a time limit to start or finish building. The home you are contracting for needs to comply with them.
- Price holds. A building price is usually held for a set period. If the land is delayed beyond that period, the price can be reviewed.
Why your conveyancer needs both documents at once
Reviewing the land contract alone answers only half the questions. The ones that matter are about how the two fit together. Do the finance dates match? Does the build price hold until the land is ready? Who carries the cost if title is late? A conveyancer or solicitor can only answer those with both contracts in front of them, and before you have signed either.
What we do with this
We bring the land and the build to you together, with a fixed price where the builder offers one, and we keep the two timelines in step. The legal review is carried out by a licensed conveyancer or solicitor, not by us.