Are you buying a property ‘off the plan’? What does that mean?
It means that the property you intend to buy has not yet been created by registration of a separate plan and does not yet have its own title.
It may be that you are buying a block of land to build your home on, or it could be a strata unit that has not yet been constructed.
An off the plan contract is quite different and much more complex to that of a property that is already registered.
Some of the things you need to consider before entering into an off the plan contract are:
- Sunset dates (the last date by which certain things need to be completed including construction works and registration of the plan). These can be quite some time in the future. Are you prepared to wait that long?
- Changes to the plan. Will the finished product be what you were expecting? Is there scope for the vendor to make changes without your consent?
- Payment of stamp duty – will you need to pay this before you settle?
- Defects period – how long will you have to raise these defects? How long do I have to wait for rectification etc.
- Warranties and/or representations made to you prior to purchase – what have you relied on when making the decision to buy.
- How you will fund your purchase if registration is not expected for a few years. Most finance approvals have relatively short shelf lives.
If you are considering buying a property off the plan or would like to know more about this subject, please contact our Property Team on 02 49272900 to have a chat.
