What is a split contract and how does it work?

A ‘split contract’ is the transaction where by one contract is used for the acquisition of land, between the land owner or Vendor and the purchaser. A totally separate contract is issed for the building process, between the builder and the purchaser. Normally both contracts would be entered into around the same time, however the land contract will settle prior to the commencement of construction works administered by the building contract.