Residential Developments – the process

 

Below is an outline of the process and timeline you can expect to go through when buying house & land in a pre-designed housing development (such as Kenepuru Landing or Arawhata Place). With this kind of comprehensive development the house designs are ‘set’, and flexibility to make variations is limited.
House & Land offerings in Residential Developments can be offered as Section & Build or Turn Key packages.

Step 1

Allocation of each section and build will be based on the order of receipt of the Registration of Interest eForm with your details required for the Sale and Purchase agreement and Build Contract.

Then a Sale and Purchase agreement will be sent to you for purchase of the land only. This will be followed by a build contract once you have confirmed any variations. The section contract will need to be signed and returned within 3 working days to retain your allocation. The build contract can be signed after your Bank and your Lawyer have approved it.

Upon signing the Sale and Purchase agreement for the land, you’ll then have 12 working days’ due diligence to confirm both contracts.

If you’re happy to confirm the contracts after the 12 working days due diligence period you’ll then need to advise your lawyer that you’re happy to proceed. You’ll be required to pay the stated deposits. This needs to be paid in two separate payments as follows:

  • For the section deposit you pay this directly into your lawyers trust account and your lawyer will then transfer this to the Vendors’ solicitors Trust Account.
  • The Build Deposit you pay directly into the builders trading account*. This enables the builder to produce full working and engineering drawings and submit these to the local City Council for a building consent.You then meet the builder to sign the 10-year Build Guarantee.

*Note: your deposit is protected under the cover provided by the builder’s third party 10 Year Build Guarantee.

Step 2

  • The builder will engage the architect to produce full working drawings.
  • Working drawings will be sent for engineering sign-off.
  • Construction drawings and associated documents are submitted to the local authority for building consent.
  • At this stage you’ll have the opportunity to choose your colour scheme.

Step 3

  • Land titles issued.
  • You will be required to settle (pay the balance of the land price minus the deposit you’ve already paid).
  • Construction of your home will then begin according to the proposed build schedule once the build consent is issued.
  • Building usually takes around 24-28 weeks depending on the size and complexity of your home.
  • You will be invited to come on site at key building stages to see how things are progressing.

Step 4

Completion

  • On completion of your build and landscaping, and once the local authority is satisfied, a Code of Compliance certificate will be issued.
  • Your bank will pay the final progress payment to the builder.
  • You’ll be invited for a final walk-through to check that you are happy with everything.
  • Handover. The builder will present you with relevant documentation including product warranties and maintenance information, and the keys.
  • Enjoy your brand new home!