What does "off the plan" mean?
"Off the plan" means that the parcel of land or unit you are purchasing does not legally exist at the time of making the contract, usually because it is part of a subdivision. The parcel of land will only be created once a plan for that lot has been registered at the Lands Department.
For example, a developer may be subdividing a large lot of land into small lots. Rather than wait until the subdivision is complete he might choose to advertise the smaller lots for sale by showing purchasers what the lot will potentially look like when the subdivision is finished. Contracts are entered into for the vendor to sell and purchasers to buy that proposed lot. Once the roads and services have been built and the Lands Department has completed the subdivision, then the vendor will advise the purchasers they are ready to settle.
Another example of 'off the plan' buying is the purchase of a proposed unit in a unit complex yet to be built. Often construction will only commence once all of the proposed units have been sold. Settlement will take place once construction and registration of the subdivision has been completed.
When you engage in purchasing a property 'off the plan', it is really important to make sure the contract accurately reflects what you think it is you are buying. Properly identifying the proposed lot is important, as is ensuring the unit that is being built will be built to a certain standard with the expected furnishings.
If you need advice about purchasing "off the plan", or have a specific question that you would like to see featured in our column you can get in touch with us on 6331 2911
From Rachael Thurn, Property Conveyancer, Kenny Spring Solicitors.
Please note the answers provided are for your general information only and we ask that you call our office on 02 6331 2911 to obtain detailed legal advice for your individual situation.