Preparing For Settlement & Handover – What To Expect With A House & Land Package

Settlement day for many homeowners is the exciting culmination of months or often years of hard work and sacrifice. The day when your chosen property becomes legally your own, there is much that goes on behind the scenes to ensure this transition is a smooth and stress-free process. 

While we’ve detailed broadly what settlement involves in previous articles, this can look a little different when settling on a house and land package. 

In this guide, we’ll go through what to expect in this scenario, so you can be best prepared for the property settlement process when building a new home as part of a house and land package. 

 

Understanding Settlement On House & Land Packages

Purchasing a house and land package in Australia offers an alternative approach to home ownership. Instead of buying an established home or vacant land, it involves a combined purchase of a plot of land with a contract to build a brand-new home. 

This method provides several benefits in terms of choice, cost, flexibility and more, but as we’ve noted, the settlement process for property packages like this and the associated lending structure is different. While there is an initial settlement, full possession and payment are delayed until the construction of the home is completed.  

 

The Settlement Process

Settlement refers to the legal process of transferring ownership of the land from the seller to the buyer. 

In the context of a house and land package, there are two distinct phases of settlement. One for the land and one for the construction, though the latter could be more accurately thought of as build management and handover. 

1. Land Settlement

Land settlement is the initial phase and involves the transfer of the land title. Mirroring a standard property purchase, the key steps involved are: 

• Contract Signing. Once you’ve chosen your land, you’ll sign a contract of sale with the developer or landowner. This contract outlines the terms and conditions of the land purchase.
• Deposit Payment. A deposit, usually costing from $1000, is paid upon signing the contract.
• Finance Approval. If you’re using a mortgage to finance the purchase, your lender will conduct a valuation of the land and approve your loan.
• Legal and Conveyancing. Your solicitor or conveyancer will conduct searches, prepare legal documents, and ensure all of the contract conditions are met.
• Final Inspection. Before settlement, you may choose to conduct a final inspection of the land to ensure it remains in the same condition it was at the time of offer. You should look for things such as any dumped rubbish, removal of services etc. 
• Settlement Day. On settlement day, your legal representative (solicitor or conveyancer) and the lender will arrange the transfer of funds to the seller, and the land title will be transferred to your name. 

2. Construction Settlement/Handover

Once the land settlement is completed, the focus shifts to the construction of your home. It can take a few weeks for construction to begin following this depending on the state you live in and who you are building with. The process typically follows these steps:

• Building Contract. You’ll enter into a separate contract with the builder. This contract will outline the construction process, timeline, costs, and specifications of your home. Your solicitor or conveyancer should have reviewed this in advance of the land sale as part of the overall package. 
• Building Permits and Approvals. The builder will obtain the necessary permits and approvals from local councils and relevant authorities.
• Stage Payments: Construction is usually paid for in stages. Common stages include the slab, frame, lock-up, fixing, and completion. Each stage payment is made after the builder completes a specific phase of construction. 
• Progress Inspections: You, along with your lender and possibly a building inspector, will conduct inspections at various stages to ensure the construction is proceeding as planned and meets quality standards.
• Final Inspection and Handover: Once construction is complete, a final inspection is conducted. Any defects or incomplete work should be addressed by the builder. After satisfactory completion, the final payment is made, and you take possession of your new home.

You do not expressly need legal representation to finalise the settlement or handover of your new home. However, should any disputes or issues arise, the solicitor or conveyancer who reviewed your contract is best placed to assist.  

 

Important Considerations

Finance

Securing finance for a house and land package involves similar paperwork compared to purchasing an existing property, however, the finance can be separated between the purchase of the land and the build of the house. Full approval of both components may be necessary to finalise settlement on the land depending on the terms of your package. Opting to purchase a house and land package offers many advantages over buying an established property as you will not be easily priced out of the market or outbid by cash buyers, making finance a viable option to obtaining your dream home. 

Legal Advice

Engaging a solicitor or conveyancer is crucial. They will handle the legal aspects of the land purchase and building contract, ensuring all documentation is correct and protecting your interests throughout the entire process. The team at Stop Renting Perth will be able to recommend a professional to assist in the legal requirements of your home purchase. 

Timeframe

It’s important to be mindful of the entire process of your house and land package, from purchasing the land to moving into your new home. Your home builder will provide you with the appropriate timelines so you can start planning and dreaming of living in your brand new home. 

 

Experience Streamlined Settlement & Handover With Stop Renting Perth 

Providing quality house and land packages in Perth, at Stop Renting Perth we offer an alternative pathway to homeownership that can see you escaping the cycle of renting sooner. 

Experience a streamlined process in which we support you to secure optimal financing, access qualified legal representation and stress-free land settlement. Followed by the timely construction and final handover of your home, we expertly manage every step from building approvals to communicating with your lender at each stage as needed. 

Hoping to take advantage of all available grants and concessions as a first-time home buyer and builder? We can guide you through this too. 

Understanding in-depth the necessary steps for a smooth and successful transition to your new home, we make preparing for the property settlement process in WA, and final handover, a breeze. Contact us today to learn more and book your obligation-free consultation.