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Finance and Settlement Guide

Finance and Settlement when buying

Buying Land: The Finance and Settlement Process

If you're new to property, the finance and settlement process can be confusing. We’ve broken it down so you can understand how it works and what you need to do to make it as easy as possible.

STEP 1 - Finance

What is Pre-Approval?

Finance pre-approval is an indication from a lender that you meet their basic criteria for a loan, up to a specified amount.

It is like full finance approval; however, the difference is you may not have decided which property you would like to purchase yet. So basically, it gives you peace of mind knowing you can obtain finance once you find that perfect property!

Why would you get it?

First and foremost, you need to know exactly how much you can afford so you are looking in the right areas and at the right homes. 

Most land developers require pre-approval before you can secure your block of land.

How long does it take to get?

If you have all the information the lender needs to evaluate you, the process is fast,  usually taking only 24-48 hours. 

To make it as fast as possible, start collecting your personal documents, including payslips and bank statements now (see below for the full list).

What do you need to get it?

You will need to complete a home loan application form and include relevant documentation. Your finance broker or bank representative will guide you through this process. 

Before giving you pre-approval, most lenders require you to provide them with documentation that substantiates your identity and your ability to repay the loan. This includes:

  • Proof of identification
  • Proof of income
  • Proof of residence
  • Proof of current assets and liabilities
  • Proof of savings / deposit for your purchase

STEP 2: The Contract

Paperwork – Signing on the dotted line. Everything you need to know.

Paperwork has the potential to be a little overwhelming, but it doesn’t need to be when you know what’s involved.

Land –The Contract

When you buy a block of land, the first thing you will do is sign a sales contract with the property developer. 

Tip: Always ask for a copy of the contract, including any appendices or covenants that form part of it, so you can read it thoroughly and understand it prior to signing.

When you sign the contract, you will be asked to pay a deposit. This money is then held in a Trust Account until the land settles.


This is where we, as the land developer, sign the contract acceptance. From here you will have approximately 7 weeks to gain unconditional approval.

Appoint a Settlement Agent

Settlement Agents will organize the transfer of title into your name and guide you through the purchase process. They tell you when you need to have signed your mortgage documents and settlement documents to ensure everything goes through smoothly.

A Settlement Agent will deal with the seller (the developer), your bank, Landgate (the Government Agency that deals with land sales) and any other authorities involved in the purchase, on your behalf.

When you sign a contract to purchase land, you will be asked to nominate your chosen Settlement Agent.

House – The Contract

You will also need to sign a contract to purchase a house with your chosen home builder.  Once again you will need to pay a deposit to your builder as well.                          

If you have chosen your house and land together, the good news is the builder and developer can often sign the contracts on the same day, one after the other.

That’s it! You’re all done.

Useful links

Land for sale

Browse all lots available

Search Land for Sale

Learn more about First Home Owners Grant (FHOG)


Learn more on Stamp Duty (also known as Transfer Duty)

Stamp Duty


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