3 Conveyancing Tips: Buying Off The Plan
Darryl Simms shares 3 conveyancing tips for buying off the plan property in the video below.
There is also a Free Download containing more tips at the end of this article.
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Related Post: 3 Reasons To Buy Off The Plan Property
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Video Transcript Below:
Today I will be talking about conveyancing tips for buying off the plan property and how you can download a free article with several more relevant tips
My name is darryl simms, Author, Speaker, Property Investment Specialist and the founder of Latte Property
First off lets talk about the Contract Of Sale.
This a critical document for buying off the plan property as what you are buying has not actually been built yet and you need to ensure you are going to get what you think you are going to get.
It is important to review the contract of sale carefully to ensure that it properly reflects, in writing, what you have been promised by the developer. Your contract of sale needs to include a detailed schedule of all fixtures, fittings and finishes and you need to be satisfied with the level of detail in the contract.
What is described in the contract needs to line up with what you think you are going to be getting in your new property once it has been constructed.
The developer will usually reserve the right to change the plans or specifications if he thinks it is necessary and you need to ensure that you will not be impacted in a negative way.
Make sure you read the contract and supporting documents from the developer and real estate agent carefully to ensure everything is well detailed prior to signing your contracts.
Tip number 2, Research the Developer and Builder
As you are not able to see the finished product for your Off The Plan purchase it is important to research the Developer. You can start with looking online to see what sort of industry reputation they have. Ask for a list of past projects to check that they have been successfully completed.
In most cases the Developer will engage a separate builder so it is also important to check out the reputation of the builder as well and look at the build quality of past constructions.
Tip 3, Your legal rights
Make sure you understand what your legal rights are in relation to your off the plan purchase.
For example, What are your legal rights should construction be met with excessive delays? Are you able to withdraw from the contract and if yes, are there any special conditions or costs.
In a worst case scenario, if the construction does not proceed and the developer rescinds the contract what happens to your deposit?
Tip 4 relates to Completion
The contract will provide the developer with some flexibility as to when the project is to be finished. Obviously delays can occur for various reasons, such as striking rock or water when excavation commences and this is not the fault of anyone in particular.
Usually, the contract provides that the developer must complete the development as quickly as possible, but if he is unable to complete within a certain period of time then either party will have the legal right to cancel the contract.
You need to ensure the contract has a realistic sunset date for completion of your new property. The contract should also contain a clearly defined mechanism for the developer to extend it (within reason). This is nothing to be alarmed about, you just need to be sure you understand how delays will be handled from a legal perspective.
These 4 tips were just a small taste of many more that we have for you.
Make sure you grab your Free Download of more property conveyancing tips via the link below
Thanks for watching and i look forward to seeing you inside our next video
Any Questions? Ask Us Here 1300 577 233
Related Post: 3 Reasons To Buy Off The Plan Property
Free Download below with more Conveyancing Tips
By Darryl Simms
Ask Darryl If you would like more info in relation to these 3 Conveyancing Tips or Buying Off The Plan property