Land Buying Tips
1. Make an offer
With your home research done and finances sorted you’ll be ready to write up an offer or contract of sale. A contract of sale is the legal agreement that outlines the terms and conditions of your property purchase, including the price offered, settlement period and any special terms or conditions. Most offers are either:
- Unconditional, usually when you have cash available immediately; or
- Conditional, nominating specific conditions on which the sale relies, such as securing finance or the sale of an existing home.
2. Exchange the contract
When both you and the seller are happy with conditions and the purchase price, both parties sign the contract of sale. This is called the exchange of contract.
3.Pay a deposit
Immediately after the exchange of contract, you will be required to pay a deposit. This is held in a trust account and cannot be accessed by the vendor until settlement (when the property changes from one owner to another).
At this time, you will also be asked to sign a transfer of land document and build document in case of House and Land package which is then registered by the owner/developer with the Land Titles Office so the property can be transferred to your name.
4. Pre-settlement
If the contract of sale includes any conditions, you should ensure the conditions are met by the due date/s. A settlement agent or solicitor can help with this and handle the paperwork involved in purchasing your new home. They will also work with you and/or your lender or mortgage broker to ensure any loan arrangements are documented.
This is also the time to start some of the fun stuff, like choosing your home design and finalising your building plans. Your new home plans and specifications should be completed, and the building contract signed, to ensure your loan is approved and your land purchase can settle by the due date.
5. Time to settle’
It’s official! Once titles are issued and your contract conditions are met, settlement takes place. At settlement, the balance of the purchase price is handed over to the seller and your representative will ensure documents are registered so the title reflects the change of ownership.
Finally, you take ownership of your property – a major milestone for any property buyer!
House and Land Package Tips
House and Land package is a two-part contract. Once the Land contract is signed, you sign a build contract or construction contract. Usually, a construction loan is drawn down in stages of an agreed loan amount, meaning you will only pay the interest on the amount as you use it. There are usually four construction stages:
- Pouring the concrete slab
- Erecting the walls and roof
- Securing the house (known as the ‘lock up stage’)
- Completion of the project
The two contracts are bundled together and because there is a fixed price for the house and land, the finance is released to the property developer immediately and you, or your tenants, can move in straight away.
When building your own home, you will obviously have more choice over the design and inclusions than with a ready built property. Our House and Land packages come with a Fixed price guarantee and industry leading inclusions. We offer turnkey solutions as well.