Page 17 - Real estate: a guide for buyers and sellers
P. 17
Conveyancing, the vendor’s statement (section 32),
owners corporation and buying off the plan
Buying off the plan Buying off the plan without being able
to observe the finished product has risks,
Buying a house or unit before the building including:
works have been completed is known
as buying off the plan. In some cases, • being unable to inspect the actual
construction may not have started whilst property. You have to rely on an artist’s
in others it may only be partially built. impression, floor plan and advertising
The design of the building and sketches material for information about what
of its final appearance may be included you are paying for
in advertising material well before
occupation is possible. • differences in the expected and actual
quality of the final finishes
People are often attracted to off-the-plan
sales as there is a reduced amount of • unexpected changes to the plans or
duty (formerly stamp duty) to pay. The specifications
amount depends on how advanced the
construction of the building is and its • an uncertain completion date
current value. If construction is close to • complex contracts
completion, the duty is likely to be higher. • limited recourse with the builder if
You can get more information about duty
by visiting sro.vic.gov.au. there is a dispute. This is because the
developer, not the buyer, enters into
Other benefits for buyers include more a major domestic building contract
input into the design and a price at today’s with the builder
market value that is locked in at the time • property market volatility causing
the contract is signed. the value of an off the plan home
at settlement to be less than the
BUYER’S TIP contract price.
If you intend to buy off the plan, get a If you buy off the plan and the plan of
firm completion date in writing from the subdivision is not registered, the law protects
developer. You should get legal advice you by requiring that the deposit is no more
before signing a contract. than 10 per cent of the contract price.
If the plan of subdivision is not registered
by the time specified in the contract or the
default time of 18 months, you have the
right to end the contract.
17
