Buying and Selling Off the Plan
Off the Plan Contracts are Contracts over newly developed land that is yet to be registered and have a separate Title created for the property. Both Land and Units can be sold off the Plan.
Selling off the plan can have serious consequences for developers if they do not comply with the appropriate disclosure requirements set out in the legislation. In some circumstances, inadequate or non-compliant disclosure may result in a purchaser being able to terminate a Contract.
For a developer, selling off the plan can be useful if you have pre-sale requirements imposed by a financier.
For a buyer there are both pros and cons to buying off the plan. The pros can be that in some cases the property market can increase during the time it takes for the plan to register, you are getting a brand new property, some of the disadvantages are that finance approvals may lapse during the time it takes to wait for the property to register and sometimes it is difficult for financiers to value the property in the early development stages, you don’t always get to see what it is you are buying if it is in the very early stages of development, sometimes the property may vary. As a buyer, it is imperative to get advice before signing an Off the Plan Contract to ensure that you adequately understand the disclosure material supplied with the Contract and can negotiate any amendments to the Contract that may be required on your behalf.