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APARTMENT LIVING: BUYING OFF THE PLAN
Buying an apartment “off the plan” is the most common way that apartments are purchased. It means that you are agreeing to purchase an apartment before it is constructed, with only the plans or artist representations showing what your finished product may look like. It is incredibly important that you receive independent legal advice about purchasing an apartment off the plan, before you exchange contracts. There are often clauses in off the plan contracts that allow for a developer to make changes to the size or configuration of your apartment, the amenities included in the building complex or the quality of the materials used, in the event that development approvals require the change. You should also make sure you are familiar with the expected construction start time and length, and what your rights are if the apartment takes longer to build than originally agreed to.
BEFORE YOU SIGN ON THE DOTTED LINE, ASK THE DEVELOPER (AND YOUR LAWYER) THESE QUESTIONS: •
The display unit and brochures look amazing! Am I entitled to receive all of that, and what happens if I don’t?
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What am I actually buying? Are there detailed plans or only concept drawings?
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Does my unit have fixed dimensions or is it subject to change? What are the limits of changes that a developer can make without my consent?
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What are the developer’s rights and responsibilities (and what are mine)?
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When do I have to pay a deposit, stamp duty, or other fees and charges?
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What if the unit is not completed by the agreed date? Can the developer or I cancel the contract? Do I lose my deposit if I terminate the contract?
