What You Need to Know About Buying Off the Plan

In this video, OMB Solicitors Partner and Accredited Property Law Specialist Simon Bennett talks about buying a residential unit in an off-the-plan purchase.

Transcript

Hi there, Simon Bennett from OMB Solicitors, and today, I wanted to talk to you about buying a residential unit in an off-the-plan purchase. So, what is that term off-the-plan?

Well, it's generally refers to where we're buying a unit which is not yet created, not yet constructed, it's a concept or an idea where there's no separate title to the property that you're purchasing.

Make no mistake, these are really complicated transactions, they're highly regulated and the contracts covering them are quite complicated. You need to seek specialist legal advice.

These contracts are subject to the creation of a separate title to the property and the creation of a body corporate. Now, there's a number of issues that are relevant to these contracts, too many to cover in this short video today.

So, I've picked two which are relevant and topical. The first is the developer or the seller's right to be able to terminate the contract. Sometimes limited to a specific date, quite often referred to as a sunrise date, and as the media has quite rightly focused on lately, a sunset date.

Now, this is the date by which settlement must occur and if settlement doesn't occur, both the developer, the seller, and you as the buyer will be able to terminate the contract of sale.

Now, these are just two of the really important clauses that you should get advice on before you sign a contract of sale for the purchase of an off-the-plan unit. As always, we at the OMB property team are here to help you, and we look forward to hearing from you.