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Overview

In the house and land industry, a single contract package means both the land and the build are being sold together under one legal contract. This differs from the typical two-contract approach where land and construction sales are separate agreements. A single contract package functions as a turnkey offering where:
  • One contract covers both land and construction
  • A single vendor (typically a builder or developer) is the contracting party
  • The builder/developer controls the land and delivers the completed home

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Single Contract vs Two-Part Contract

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SMSF Compliance Considerations

Self-Managed Super Funds face restrictions: they cannot enter construction loans, sign separate build contracts, or pay for partially completed properties. However, they may purchase completed dwellings under a single contract from an appropriate vendor. Using a third-party entity to structure single contract packages can provide SMSF compliance by acting as a developer and delivering a completed turnkey product.

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Key Risks

Potential concerns include legal structure timing, cash flow management, builder insolvency, construction delays, and stamp duty implications. Each requires appropriate legal and financial safeguards.