A buyers guide to signing off-the-plan property contracts
As with any form of real estate investment, signing “off-the-plan” contracts with caution is paramount to protecting your interests. To assist with the process, here are a few key points to bear in mind before signing.
UNDERSTAND THE SPECIFICS OF THE PURCHASE
Go over the contract's terms and conditions carefully to ensure you understand them. Specifically, consider how the contract is structured, any incentives provided by the vendor, its inclusions and exclusions, and the timeframe for completion.
UNDERSTAND THE PHYSICAL ASPECTS OF THE PROPERTY ITSELF
When you sign an "off-the-plan contract", you might be signing a contract to buy undeveloped property, an apartment, a townhouse, another type of residence, or a retail establishment that has not yet been built. Accordingly, great care needs to be taken to include conditions in the Contract which accommodate this fact. Architectural drawings are typically included in the contract when buying an "off-the-plan" residential home or business land. Buyers should be aware that, depending on the terms of the contract, architectural designs are frequently susceptible to alteration.
CHECK THE ZONING LAWS AND DEVELOPMENT LIMITS
Be aware that these can significantly affect the property's present value as well as the potential future return. If there are any legal concerns with the purchase, carefully examine them and seek advice from a qualified lawyer, if necessary.
UNDERSTAND THE FINANCIAL IMPLICATIONS OF YOUR PURCHASE
This means ensuring that the deposit is a set amount with which you are comfortable and also being aware of any additional fees that might be required, such as regular maintenance or insurance payments.
By keeping these points in mind, you can be better informed and prepared when signing" off-the-plan" property contracts.
If you would like to discuss this or any other issues, the Property Law team will be happy to assist on 9870 9870.