NSW FHOG DECLINED

Hi everyone, as usual getting your insights and advise! Property Chat been always a great help to me. Am a first home buyer just settled for 300sqm land and a new house @665k in a new state. It is one contract between me and the vendor titled (CONTRACT OF LAND SALE ) and there is a Tripartite agreement (Builder deed) between the vendor, builder and myself.

I was under the impression that am eligible for the FHOG as the threshold for H&L package is 750k, got surprised receiving a rejection letter from Revenue NSW as the property is above threshold which should be 600k. Called them and on the phone they said you must have 2 contracts (split contract) and they ended the call.

Am thinking, I bought a land and built a house for a combined value of 665k and meeting all the other criteria, why am being treated differently than some one who bought a land and built a house for 750k but they have two contracts !

Honestly it does not make sense, has anyone had came across similar situation or have an advise?

 

Hello

is the contract of sale a combination of a land contract and a building contract ? Or just a land contract with no specification of the building?

 

It includes the house too but there is no breakdown of how much the house is and hoe much the land is for

 

What's the reason for a Tripartite Agreement? Did you speak with your solicitor/conveyancer about it before you signed?
Is the property partly constructed already or something else?

 

That is a little wierd, I've had a FHOG approved where the purchase is treated as an off the plan, contract had a land contract ( noting full sales price) and a building contract (noting $1) and settled after completion.

I assume yours is the same?

 

I think it is similar, it is one contract with the full price, 5% deposit and settlement upon completion. But when i filled the application i marked "new dwelling" not off the plan , maybe that is why , am really so confused specially that they missed applying to it during the loan process

 

Yeah my solicitor was alright on all parts and we have settled and moved in already. The tripartite agreement is between the developer, the builder and us the purchaser.

 

Yep, maybe best call NSW state revenue to clarify as I know this has been approved .

 

I called the lady was dismissive saying she needs 2 contracts. Will try again

 

When i paid to book the land on december 2020 and the slab was laid already, by the time we exchanged contracts on February the house was mid construction , then we settled after the house was completed on April 2021

 

That would be why you don't qualify for the grant then, you paid more than $600K and you you weren't buying a house and land package, you were buying a newly built home.
$600K limit for brand new homes, $750K limit for house and land, it's on the NSW Revenue website.
Also explains why there was tripartite agreement, the builder already started construction before you settled on finance.

 

What is the difference between my situation and a H&L package, at the end i bought a land and built a house ‍♀️ I truly do not get the rational

 

You bought a house already built, by the time your finance settled you had a finished house. your solicitor should have explained this to you before you exchanged contracts.

House and land is when you settle on a vacant block, once finance is formally approved an settled then construction begins and you have a construction loan which pays for the build in stages via progress payments.
You settled on a house that was fully built and only had one contract. Therefore the purchase limit is $600K not $750K

 

I see. Thanks Lindsay, I appreciate it.