For new house & land packages there are often two separate contracts: a contract for ownership of the land and a contract for the construction between you and the builder.
The Building Contract is a service agreement between you and the builder, subject to the successful purchase of the land, and includes the construction build time frame and Payment Schedule.
Exchange of contracts
This means both parties provide each other the signed contracts of sale - the seller’s (also known as the vendor) representative will return in identical terms a signed version to your Solicitor.
Once you have signed the Land Contract and it's been countersigned by the vendor (or developer), and your Land Deposit has been paid, the contracts are exchanged. In Queensland, there may be a finance clause where you have 21 days to provide formal finance approval from the exchange date.
If the Land Registration is complete, formal finance approval can be provided, however, if the build period is extended into the future, the finance approval can be waived.
Your Solictor or Conveyancer, along with DPN, will guide you through this process.
Arranging the settlement of land
Settlement is when you pay the balance of the agreed land purchase price to the vendor. Once formal approval of your loan is confirmed, your Solicitor will advise the settlement of your land and make arrangements with your lender for the transfer of funds.
Your Solicitor then books the settlement, and will advise you and DPN via email of the date and time. You do not need to be present at settlement and your Solicitor will confirm to all parties via email once settlement of your land has been completed.
Land title registration
This normally happens two weeks after the land has been registered by Council and can take some time, dependent on the requirements of the land, such as if soil testing needs to be undertaken or bushfire rating activities.
Each state has a central register (a Land Titles Office) which shows the owner of the land. The land title is the official record and can also include information about mortgages and easements.