Australia House and Land Package Buying Process (Updated 2024)
1. Reserve a Property
Once buyers have selected the land and house they are happy with, they need to pay a holding fee (usually A$1,000 – A$5,000), which allows the agent to apply to the developer to reserve the land. If the buyer changes their mind before the contract is signed, this holding fee is refunded in full; if the contract is signed, the holding fee forms part of the deposit. For overseas buyers, Aobo Realty will assess financial capacity in advance to determine the type of house and price range that can be purchased.
2. Sign the land contract and building contract
The developer/builder provides the land and contract to the buyer or the buyer's representing solicitor. The buyer signs after consulting their own solicitor and fully understanding the contract; at the same time, the developer/builder signs the relevant contract, and the purchase contract then comes into effect.
3. Apply for FIRB approval
Overseas buyers submit a purchase application to Australia's Foreign Investment Review Board (FIRB). This step applies only to overseas buyers. From July 2023, FIRB applications use a new system, and this process is generally completed with the assistance of the buyer's representing solicitor.
For details, see -
Update on Australia's Foreign Investment Review Board (FIRB) fees for the 2024-2025 financial year
4. Pay land and building deposit
Within the time specified in the contract (usually 7 or 14 calendar days), the buyer needs to pay 5% – 10% of the land amount as a deposit. This money must be paid into the trust account of the developer's solicitor. At the same time, a 5% building deposit is paid into the builder's nominated account. Overseas clients who require a loan can borrow up to 80% of the total land and house contract value, and Aobo Realty provides assistance with loan applications.
5. Land settlement
After the land title is registered, the land settlement process takes place. The buyer pays the balance of the land amount and the land stamp duty, at which point the land title is transferred into the buyer's name. This process is completed independently by the developer's and the buyer's solicitors.
6. Apply building permit
After receiving confirmation that the land transfer to the buyer has been successfully completed, the builder needs to handle the relevant building approval procedures and carry out preparatory work. This process generally takes around 1 month.
7. Start building and pay by installment
The house building process in Australia is mainly divided into five stages: slab, frame, lock-up, fixing and complete. At the end of each stage, the building contract sets out in detail the amount payable for that stage. At the end of each stage, the builder carries out an inspection of that stage of construction and issues the corresponding invoice. Once the inspection passes, the buyer needs to pay the builder the fee for that stage in accordance with the contract.
8. Final inspection
After the house is completed, the developer will invite the buyer or the buyer's representative to inspect it. Any issues found during the inspection will be recorded, and the developer will then arrange rectification. If the buyer requires a professional building inspector to issue a formal inspection report, Aobo Realty can assist with arrangements. If any issues arise within three months of settlement being completed, the developer will also be responsible for timely repairs. Under Queensland property law, the structural warranty period for a property is 6 years.
9. House handover
On the day of handover, the buyer needs to pay the balance of the house to the developer, and the buyer can then move into the new home. For investors who will not be living in the property, Aobo Realty can arrange management of the house, including leasing, maintenance and more.