A house & land package usually involves two contracts, not one, and that split is what catches people out on timing and government charges. Land and build are marketed together, but they can still settle separately, on different dates, with different duty and finance treatment.
Two contracts, two timelines
The land contract typically settles first, you pay stamp duty on the land component and may draw a land loan. The building contract then runs on its own schedule, funded through progressive draws as the home is built. Because these are separate legal events, your finance needs to cover both: a land settlement, followed by a construction facility that funds the build.
Why government caps can use combined value
Some government programs apply special rules to house-and-land or construction transactions, including how land and build values are treated. Use Government Support to check the current official state rules. If a cap or eligibility rule matters to your purchase, confirm the combined land-and-build treatment before signing.
What to check before signing
- Whether the land and build contracts are genuinely separate, or structured as one combined transaction, this affects duty treatment
- Whether your total land + build cost fits within any government scheme cap you’re relying on
- Your finance structure for both the land settlement and the subsequent construction facility
- The builder’s realistic completion timeline against your lender’s maximum construction window
What to prepare
- Both contracts, land and build, reviewed together, not in isolation
- A combined Funds Position covering land settlement and construction draws
- Confirmation of any government scheme’s combined-value cap for your state
Next step: work through your land and build figures in the Funds Position calculator, then talk with KartikKumar about structuring the finance across both contracts.