Off the plan contracts contain a large number of special conditions that affect everything from the time that the developer has to deliver your property, to what exactly they are required to deliver. It is really important that you know your rights and responsibilities under an off the plan contract.
What are the risks with off the plan contracts?
The developer will generally have the right to make changes to the property that you are purchasing. This can include small changes like colours and finishes, or large changes like size and floor plans. We can help you understand or even negotiate to reduce the scope of the changes that the developer can make under your contract.
Adjustments and outgoings
Some off the plan contracts contain clauses that make you responsible for the holding costs of the property (like council rates and owners corporation/body corporate fees) even before you own the property. This can even include the developer’s land tax charged at a much higher rate than you would normally pay. We can help you identify contracts that pass on these costs.
Owners corporation/body corporate rules
Almost all off the plan properties are subject to an owners corporation or body corporate. You need to understand the rules and bylaws that will apply to your use and enjoyment of your off the plan purchase.
Default and penalty interest
Many off the plan contracts contain harsh default clauses. This means that the developer can charge you a very high rate of interest if you fail to settle on time. This is sometimes negotiable before you sign the contract.
Sunset clauses have had a lot of negative press lately and people are starting to understand just how dangerous they can be in a difficult property market. We can make sure you understand the risks and any applicable consumer protection legislation that will help you.
One of the biggest risks in buying an off the plan apartment is construction quality. Off the Plan Conveyancers will take you through the defect clause in the contract and explain to you your rights in the event that there is a minor (settlement cracks, broken fittings) or major (flammable cladding, structural failures) building defect.
Why do you need a specialist Off the plan contract reviews?
As you can see from the above, off the plan contracts contain special conditions that can seriously affect the value of your property and your rights in the event that something goes wrong.
Most lawyers and conveyancers only see a handful of off the plan contracts per year, and some refuse to do them at all due to the complexities involved.
An off the plan conveyancer understands the unique set of risks that off the plan purchasers are exposed to. We can help you to understand them fully, and even negotiate or take steps to address them where possible.
What are the usual Conveyancing Contract Review Costs?
For $600, we will read, check, and summarise your 150 to 500 page off the plan contract into a 3 to 5 page letter of advice that explains the key special conditions, risks, rights, and responsibilities that affect you. This price also include a telephone consultation that will answer all of your questions about the contract and our advice.