Off-The-Plan Purchases

Off-The-Plan Contracts primarily relate to land subdivisions and new property developments. Strata units can be advertised and sold prior to or during construction, a practice often referred to as purchasing "off-the-plan.” 

When considering such a purchase, several key considerations should be taken into account:

 • Withdrawal Penalties: It's essential to ascertain whether there are any penalties associated with withdrawing from the contract. Understanding the financial implications of a change in plans can prevent surprises later on.

 • Changes to Finishes: You should inquire about the developer's authority to make alterations to the finishes. Knowing whether the property's specifications are guaranteed or subject to change can help you make informed decisions.

 • Access to Early Finance: In the event that the construction is completed ahead of schedule, it's important to determine whether you will have access to financing for the property. Being prepared for an early settlement can be advantageous.

 • On-Selling Before Settlement: Clarify whether on-selling the property before settlement is permitted under the contract terms. This can be relevant if your circumstances change, and you need to sell the property before taking possession.

 • Settlement Delay and Duration: Consider the possibility of settlement delays and the duration for which the developer can extend the settlement date. Being aware of the contractual terms for potential delays is crucial for your planning.

 • Building Defects Clause: Evaluate whether the contract includes a clause addressing building defects. Understanding your rights and recourse in the event of defects or issues with the property can provide peace of mind.

When engaging in Off-The-Plan Purchases, it's imperative to be well-informed and seek legal advice if necessary. These considerations will help you navigate the intricacies of buying property "off-the-plan" and ensure a more secure investment in the real estate market.