What to know when purchasing a property ‘off the plans’
Buying a property off the plans means that you are purchasing a property before it has been constructed, based on the plans and specifications provided by the developer. Here are some things you should know before buying a property off the plans:
Research the Developer: Before purchasing a property off the plans, it is important to research the developer and ensure that they have a good reputation and a track record of delivering quality projects.
Review the Plans and Specifications: It is important to carefully review the plans and specifications provided by the developer to ensure that the property meets your needs and expectations.
Review the proposed Easements and Land Covenants to familiarise yourself with any restrictions on building, landscaping and general use of the property.
Understand the Timeline: When purchasing a property off the plans, you will need to understand the construction timeline and the estimated completion date. You should also be aware that there may be delays or changes to the completion date, so it is important to factor this into your plans.
Payment Terms: When purchasing a property off the plans, you will typically be required to make a deposit upfront, followed by progress payments as the construction progresses. Make sure you understand the payment terms and the schedule of payments.
Contracts: It is important to review the contract carefully before signing and seek legal advice if necessary. The contract should include details such as the estimated completion date, payment terms, warranties, and any conditions or contingencies.
Risks: There are risks associated with buying a property off the plans, such as changes to the plans or specifications, construction delays, and the possibility that the final product may not meet your expectations. Make sure you understand the risks and factor them into your decision-making process.
Cooling-Off Period: In some jurisdictions, there may be a cooling-off period after signing the contract, during which you can cancel the contract and receive a refund of your deposit. Make sure you understand the cooling-off period and any associated conditions.
Buying a property off the plans can be a good option for those who want to secure a property before it is completed, but it is important to do your due diligence and carefully review all of the details before making a decision.