What is a ‘House & Land package’?
A Section & Build package is where you the buyer, purchase the section from the builder and then pay the builder progress payments under the terms of the build contract, as the house is being built. If you are borrowing the money to do this from a bank, you will require a construction loan. Your bank will wish to see a Sale and Purchase agreement for the section, and a Build Contract. Your bank will settle (pay in full, minus your deposit) the section price upon the land title being issued. Then the construction of your new home will begin. The bank will then pay the builder staged progress payments. At the completion of the house build (once the Code of Compliance is issued) your bank will convert the construction loan into a principal & interest mortgage, and choose a fixed term.
Turn Key Construction is where the builder settles the section and funds the house to be built, and you the buyer pay on completion.
As with the section and build process, you pay an initial deposit, usually around 10% of the total price. You pay the remaining balance once the house has received it’s Code of Compliance Certificate (CCC).
In both cases the money for your deposit is held in the Vendors Solicitors Trust account. If the builder goes bust during the build, your deposit will be protected.