House and Land-Packages Property Lawyers WWL

9 March 2021

How do house and land packages work?



Building companies or developers (the vendor) will offer a house and a package, this is where you enter into two contracts with the vendor;

 

1.     A Sale and Purchase Agreement for the land, and;

2.     A Building Contract 

 

A condition of the sale and purchase agreement is that you enter into a building contract with the builder. The sale and purchase agreement will usually require you to settle the land into your own name (have the land’s title in your own name), after the land has settled the build contract will usually start after building consent has been obtained.

Should I pay the deposit for a house and land package without seeing a Property Lawyer first?



A property lawyer will always advise against this if you have not sought legal advice. You may want to know whether this deposit is refundable and any other implications of the contract. 

When should I find a Property Lawyer to help me with my house and land package?



The sooner the better or before you sign. Do not feel pressured that you have to sign the building contract and sale and purchase agreement without seeking legal advice first. The contract may not have the relevant clauses added to the agreement and once you sign the agreement you may not be able to amend the agreement.

Can I use my KiwiSaver and Kainga Ora Home Start Grant for my house and land package?



You may use your KiwiSaver to go towards the deposit for the section of land or to go towards the settlement proceeds for the land. However, if you are going to use your KiwiSaver for the deposit a special clause is required to be added to the sale and purchase agreement.

 

You may be eligible to apply for the Kainga Ora Home Start Grant. Before you sign a Sale and Purchase agreement you can go onto Kainga Ora’s website and see whether you are eligible for the Grant and apply for pre-approval. 

 

You will also need to be aware that there are time frames that need to be factored in when applying for your KiwiSaver withdrawal and the Home Start Grant. 

 What do Property Lawyers do when I buy a house and land package?



We review the title and LIM report in relation to the section and report this information to you. Most of the sections will have easements, land covenants, consent notices and other encumbrances on the title that you may need to comply with and any long term maintenance costs that you may incur. We will check with you that you are able to finance the property, but you will need to obtain approval from a bank or mortgage broker. We will also review the Building Contract for you. Once the contract has confirmed we will prepare all the documents necessary to prepare for settlement.


Feel free to contact one of our property lawyers today for further information.

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