Off the Plan Purchase
Off the Plan Purchase
While the conveyancing process for an off the plan purchase is similar to buying a normal property, there are additional considerations that you must appreciate:
- If the construction of the Property is not yet completed, your bank may not be able to offer unconditional bank approval to you before exchange of Contract. The bank will mostly offer a pre-approval for off-the-plan buyers. However, pre-approval is not a guarantee that the bank will give you a loan when the property is completed.
- As the market price can fluctuate, the bank may not necessarily offer you the loan amount you have applied for especially if the property market fails before settlement (which can be in a year time). Please ensure you have additional fund to cover any potential shortfall.
- Generally, the Vendor has the right to amend the Property (including the size, layout, location and finishings) and impose additional restriction and easement on the Property not known at the time of contract.
- All documents attached to the contract are daft only and are subject to change.
- Check the estimated Strata Plan registration Date. It may takes up to 1 to 2 years before settlement.
- Check the draft Strata Plan and Schedule of Finishes. Please note that the Vendor generally has a right to amend the Strata Plan and the Schedule of Finishes.
- If you are buying the property as an investment, you should consider obtaining from the vendor report for the purpose of Div 40 and Div 43 of the Income Tax Assessment Act 1997 (Cth) for claiming tax deduction. The Vendor generally will charge you to obtain such report.
