House and land packages are popular across Melbourne’s growth corridors – from Mickleham, Kalkallo and Donnybrook in the north to estates in Wollert, Mernda and Beveridge. They offer a brand-new home, modern design and sometimes lower stamp duty. But a package is really two separate deals bundled together, and each needs careful review before you sign.
How House and Land Packages Work
Most house and land packages involve two contracts:
- A land contract with the developer to buy the lot – often before titles are issued.
- A building contract with a builder to construct the home on that lot.
The land contract settles first, usually once the plan of subdivision is registered and titles issue. Construction then begins, and the builder is paid in stages as work progresses. Your lender usually provides a construction loan that releases funds at each stage.
8 Conveyancing Tips for House and Land Packages
1. Review the land contract and plan of subdivision
Check the lot size, boundaries, easements and any building envelope on the plan. Confirm whether the plan is registered or still waiting for titles.
2. Check the sunset clause
If titles are not yet issued, the land contract will include a sunset date. Understand what happens if the developer is late – read our guide to sunset clauses.
3. Read the estate design guidelines
Many estates have restrictions on facade design, roofing, fencing, driveways and landscaping, often enforced through a covenant on title. Your builder’s plans must comply.
4. Understand the building contract separately
The building contract is regulated by Victoria’s domestic building laws. Check the price, inclusions, provisional sums, timeframes and the builder’s domestic building insurance. Consumer Affairs Victoria has guidance on building contracts.
5. Watch for site cost variations
Site costs – such as rock removal, retaining walls or extra soil works – can add thousands of dollars. Ask whether these are fixed or estimated before you sign.
6. Plan your finance for both contracts
Lenders assess house and land packages differently. Ensure your approval covers land settlement and construction, and keep your finances stable while waiting for titles.
7. Check stamp duty and grants
Stamp duty is generally payable on the land price only, not the building contract. Eligible first home buyers may also qualify for duty concessions and the First Home Owner Grant for a new home – check current rules with the State Revenue Office.
8. Inspect at each stage
Consider an independent building inspector at key construction stages and before handover. Issues are easier to fix before the final payment.
Land Contract vs Building Contract
| Feature | Land contract | Building contract |
|---|---|---|
| Party | Developer | Builder |
| Main law | Sale of Land Act | Domestic Building Contracts Act |
| Deposit | Often 5–10% of the land price | Limited by law for most domestic building contracts |
| Settlement | When titles issue | Progress payments, then handover |
| Stamp duty | Usually payable on land price | Generally not dutiable |
Common Mistakes With House and Land Packages
- Signing a land contract at a display village without a conveyancer review.
- Assuming the land and build will be finished by a set date.
- Not budgeting for site costs, driveways, fencing and landscaping.
- Letting finance approval expire while waiting for titles.
- Overlooking design guidelines that limit future extensions.
Get Help From a Local Conveyancer
We regularly review land contracts across Melbourne’s growth areas, including Mickleham, Kalkallo, Donnybrook, Wollert and Beveridge. Our off-the-plan conveyancing service covers land contracts and settlement at a fixed fee.
House and Land Packages: Questions to Ask the Developer
- When is the plan of subdivision expected to be registered?
- What are the estate design guidelines, and who approves house plans?
- Are there restrictions on fencing, driveways, letterboxes or landscaping?
- What services (power, water, sewerage, NBN) will be connected to the lot?
- Are there any easements or retaining walls on the lot?
- Are there any developer rebates or incentives, and what conditions apply?
Timeline for House and Land Packages
A typical timeline runs from signing the land contract, to land settlement once titles issue, to construction (often 6 to 12 months), and finally handover. If titles are already registered, the land may settle within 30 to 60 days and building can start soon after. If titles are not yet issued, it could be many months before you settle the land. Plan your rent, finance and moving dates with these stages in mind, and keep your conveyancer and broker updated as dates change.
For more help, read our guide to sunset clauses and building inspections.
Frequently Asked Questions
Do I pay stamp duty on the whole house and land package?
Generally duty is payable on the land contract price, not the separate building contract. Confirm your situation with your conveyancer and the SRO.
Can I use my own conveyancer for a house and land package?
Yes. You should always have an independent conveyancer review the land contract, rather than relying on anyone connected with the developer.
What happens if titles take longer than expected?
You remain bound until the sunset date. Keep your broker informed, as pre-approval may need renewing.
Does the First Home Owner Grant apply to house and land packages?
Eligible first home buyers may receive the grant for a new home, including house and land packages, subject to price caps and other conditions.
Need help? Easy Home Conveyancing offers fixed-fee conveyancing across Melbourne and Victoria. Call 0412 850 551 or request a free quote.
