Things To Learn About a Building Contract Before Buying Home and Land Package

Home and Land Package: Currently, property developers acquire land as soon as the government releases it. They lay the entire infrastructure of that land including sewage, roads, water, and utilities. Then sell property in ways like a turnkey or land-only package.

• Home and land package – It means you are buying a vacant property, which is not built or is under construction. Home and land packages are offered as a bundle at one cost. You pay less than 20% upfront [while signing the contract] and have some time to save money before you turn the key to your new home.
• Land-only – You purchase the land-only and engage a builder to construct a home of your dream. It takes time because you have to find a designer and even design the home.

A leading residential construction company will offer a wide range of house and land packages across New Zealand. The housing developer has multiple-sized lots and various home designs suitable for buyers with different budgets and needs. If you are a first-time buyer then some advantages of buying Home and land packages are the chance to customize, tax savings, and competitive rates.

Some things to learn about home and land packages associated with building contracts 

Obtain the sales & purchase agreement copy

If you found a home and land package then first obtain the sales & purchase agreement copy including the building contract to get it reviewed by a lawyer. The sales & purchase contract for off-the-plan buy includes several clauses, which will favor the seller. Therefore, have a solicitor review it before indulging.

Lending options research

Never mechanically approach the developer’s lender, but do some groundwork. You must be aware of the lender’s credibility and even look around for better interest rates. The lender must know that you are investing in a home and land package because this can be a subject to titling issue. It may mean that you are making a settlement right away, so ensure that the lender is aware of this.

Confirm building time

Discuss when the building process will start with the developer and the deadline of completion. You will need to be prepared with the settlement amount until then and also make preparations to move. The home and land package hardly includes a specific timeframe, so it is essential to clear this time completion aspect in detail. Many contracts offer the developer a protection window when the timeframe is not fulfilled due to the unavailability of raw materials or severe weather conditions. A reliable building developer will offer a written contract including completion date, payment schedules, and guarantees. You can negotiate for changes in the contract but ensure that everyone’s need is covered. It is sensible to involve an attorney.

Check guarantees & warranties

A newly constructed residence carries a standard guarantee of 10 years. Ask what warranties and guarantees will the building developer offer to the purchaser on settlement. You need to be aware of what is applicable and what is not.

Confirm the color schemes, material, and appliances

The building contract will contain specifications about the raw materials, color scheme, and appliance brand to be used. Make sure you are satisfied with what is proposed or make changes if you desire in the initial stage. Remember, for upgrades you will need to pay extra, so to avoid this address it in the initial stages.

Make sure that the builder you choose has a reputation, license, and experience in real estate!

 

Also Check:

First Time Home Buyers Mistakes and How to Avoid