A House and Land package is one where the buyer purchases the land and then purchases the house. This means that two contracts are entered into simultaneously. The buyer will enter into the standard Contract for the Sale of Land which will usually be the one prepared by either the state Law Society of the State, or in QLD the contract is prepared by the Real Estate Institute of QLD.
This standard contract is drafted to be balanced in the interests of the buyer and the seller, and must comply with the requisite legislation of the respective states. However, the vendor’s solicitor will attach special conditions to the contract. These special conditions will be heavily in favour of the vendor, and it is important that a solicitor specialising in conveyancing or property advises you on these conditions.
Because a House and Land package, usually involves a developer taking a large portion of land and sub-dividing it into individual plots, the plot you are purchasing is unlikely to be in existence yet, and therefore won’t be registered with the respective land registry in the particular state. Until the land is actually registered as an individual plot it cannot be sold to a buyer. Therefore, it is usual to find that the special conditions will provide a sunset date. The sunset date will stipulate by when the land must be registered. This may be a number of months from the date you sign the contract.
The second contract will be the contract you enter into with the builder in order to build the actual house. This will be a Home Building Contract/Agreement and will be governed by state laws regulating construction, for instance in NSW the Home Building Contract or Home Building Agreement is governed by the Home Building Act 1989.