What are the risks when buying off-the-plan?
Like anything, and specifically when buying real-estate, the more informed your decision, the more likely you are to come out on top.
Off-the-plan apartments are substantiated by purchasers’ deposits and funded by the bank.
Effectively, your deposit is used to apply for a bank-loan for the development.
What you may hear is that people have ‘lost out’ due to a developer going broke - but this is all prevented when you research and choose your development carefully.
Most reputable developers will be transparent in their funds, goals and previous achievements (and failings).
Additionally, one that concerns most people, is that you cannot see the final product. When you are buying your apartment, you are buying it based on the plans presented to you, and the display suites and fittings that you have seen. Most disputes in off-the-plan purchases occur when the purchaser is not satisfied or entirely happy with the final product (i.e. the apartment).
Australian consumer law is always trying to implement new ways in which developers must convey transparency and disclosure. If you feel that something isn’t right, do not invest in the development and consult with your legal advisor.
Can the developer delay settlement?
Within your contract will be a ‘sunset clause’ (hyperlinked) - with a specific date present, this is the date in which the developer/builder etc. have to have the development finished. If the development isn’t finished by then, you are welcome to receive your deposit back, and walk away…
Can things be changed without my permission?
This is all dependent on your contract - but generally, no, a developer cannot make amendments on your apartment. However, in a lot of contracts, there is a clause stating that ‘minor changes’ may be undertaken - understanding what ‘minor’ means is wise before signing your contract.
Can parts of the apartment be amended?
In your contract it will address this very issue - each contract and developer is different. But on a general level, it is possible, under special conditions where the developer will have no choice but to cancel the contract if the plan of subdivision isn’t register by a certain time.
Can the developer cancel the contract?
In your contract it will address this very issue - each contract and developer is different. But on a general level, it is possible, under special conditions where the developer will have no choice but to cancel the contract if the plan of subdivision isn’t register by a certain time.
Can I cancel the contract?
You cannot cancel your contract with out a substantial reason - it is a very difficult process, and shouldn’t be taken lightly - i.e. if you ‘change your mind’ you cannot cancel the contract. However, if you believe you have been wronged in one way or another, contact your legal advisor immediately.
What if the apartment is different to the plans?
Again, this will be completely dependent on your contract- however, it is all about defining what is different. Most contracts have a variance on size, area, fixtures and fittings. This again reiterates the importance and imperativeness that you go over your contract, word for word, with an experienced legal advisor or lawyer.
How do I know if a developer is reputable?Research, research, research. A process which almost any real estate agent will beg you to do. A developer should be transparent and open with you regarding their past work, their balance sheet, as well as their confidence in the development you are looking at.
Can the developer delay settlement?
Within your contract will be a ‘sunset clause’ (hyperlinked) - with a specific date present, this is the date in which the developer/builder etc. have to have the development finished. If the development isn’t finished by then, you are welcome to receive your deposit back, and walk away…
Can things be changed without my permission?
This is all dependent on your contract - but generally, no, a developer cannot make amendments on your apartment. However, in a lot of contracts, there is a clause stating that ‘minor changes’ may be undertaken - understanding what ‘minor’ means is wise before signing your contract.
Can parts of the apartment be amended?
In your contract it will address this very issue - each contract and developer is different. But on a general level, it is possible, under special conditions where the developer will have no choice but to cancel the contract if the plan of subdivision isn’t register by a certain time.
Can the developer cancel the contract?
In your contract it will address this very issue - each contract and developer is different. But on a general level, it is possible, under special conditions where the developer will have no choice but to cancel the contract if the plan of subdivision isn’t register by a certain time.
Can I cancel the contract?
You cannot cancel your contract with out a substantial reason - it is a very difficult process, and shouldn’t be taken lightly - i.e. if you ‘change your mind’ you cannot cancel the contract. However, if you believe you have been wronged in one way or another, contact your legal advisor immediately.
What if the apartment is different to the plans?
Again, this will be completely dependent on your contract- however, it is all about defining what is different. Most contracts have a variance on size, area, fixtures and fittings. This again reiterates the importance and imperativeness that you go over your contract, word for word, with an experienced legal advisor or lawyer.
How do I know if a developer is reputable?Research, research, research. A process which almost any real estate agent will beg you to do. A developer should be transparent and open with you regarding their past work, their balance sheet, as well as their confidence in the development you are looking at.
To do this, make sure you follow our research steps here
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