Off the plan apartments. You’ve either heard really good things or really bad! We’re here to give you some important legal advice before you make a decision. Besides all the advantages and disadvantages that you probably are aware of, legal considerations are one of the most important factors you need to be aware of!
What exactly is buying off the plan? It is quite simple and the term explains itself well. Buying a new off the plan apartment in Sydney means you are signing a contract to buy real estate that is yet to be built. Many people get swept away with the glossy brochures and amazing models, enticing them to purchase an off the plan apartment. However, before taking the massive leap, it is important to look at the pros and cons, making sure it is the right decision for you.
If you do some research for yourself, many people would recommend buying off the plan as it is more advantageous for investors. If you are looking to purchase an off the plan property for investment, it is important that you do some research regarding the area, property and development plan. An investment property needs to have growth potential and suit your financial circumstance. Therefore, we recommend taking the time to talk to a range of people and undertaking first-hand research before making a decision.
Legal advice for off the plan apartments in Sydney: real-estate, contracts, review and signing
Before signing along the dotted line, it is vital that you understand the legalities behind your purchase, ensuring you are not placed in a stressful situation. We recommend seeking legal advice, either from a contract/property law specialist to ensure that the contract contains all the relevant terms.
- Cooling off period: many states in Australia have a ‘cooling-off’ period which is around 3-5 days, meaning you will be able to change your mind about the purchase during this timeframe. However, keep in mind that you may be charged a termination fee from the developer which is around 0.25% of the purchase price.
- Project plans: it is vital that you take a look at the contract and ensure that it discloses all information regarding the plans of the build. This includes proposed plans, floor plans and a schedule for the construction
- Deposit amount: the contract should also state the deposit amount (usually 10%) as well as who will receive the interest earned on the investment
- Inclusions: warranties, inclusions and costs of upgrading fixtures/fittings should also be clearly stated in the contract. This is important to secure as if you are not happy with the quality of finishings in your off the plan apartment, the developer should be able to resolve the issue.
- Building defects: ensure the contract clearly states that the developer is responsible for repairing any defects in the construction. This will safeguard you from any issues in the future.
Putting aside all the legal considerations, we also recommend conducting a background check on the developer, builder and architects to confirm their qualifications and experience. Take a look at their reviews and current projects to have an idea of what you are getting yourself into before agreeing to anything.
Are you considering purchasing a new off the plan apartment in Sydney? Make sure you take into account the good, the bad and the ugly. Don’t be swayed by the luxurious images. Research into Sydney real-estate and choose an off the plan apartment that is right for you! Need advice? There are many property development companies in Sydney that can provide you with guidance regarding your purchase. Reach out today!