Buying a property off the plan means that it is yet to be
subdivided by the developer into the lot which is being bought. The
land may still need some development works carried out to it by the
seller, and a legal title has yet to be created for the particular
piece of land you are buying.
What does buying off the plan mean?
The contracts for buying off the plan are more complex than when
buying an existing property. One reason is because as work still
needs to be carried out, the contract needs to allow scope for some
minor variations between the proposed plan, provided that any
changes do not materially prejudice you.
There are two main parts to the contract:
- Disclosure Statement – this contains a disclosure plan,
which shows the proposed property you are buying, body corporate
information and fees. You must sign the disclosure statement to
acknowledge the plan before signing the contract.
