‘Off the plan’ simply refers to a piece of land that is vacant. Therefore, you will signing the contract for a property that is yet to be built. There are several benefits for buying ‘off the plan’ such as government grants and stamp duty exemptions. However, a buyer should also be aware that this type of purchase involves several potential risks.
We recommend that you consider the following before signing a contract for property that is yet to come into existence:
- Your circumstances may change before completion, which may affect your ability to obtain finance
- The development may be significantly different upon completion to what you agreed
- Legal advice is vital as contracts and Section 32 statements are often quite complex
- Upon settlement, adjustments are not assessed for each parcel but for the entire block of land. The contract should contain a provision to avoid disputes.