Home hunters will know that properties are often sold before they are actually constructed. This is referred to as buying “off the plan” and it works for people who want to secure the current market price of a property. With property prices in Sydney on the rise this has become a very common practice.

However, the construction process may mean that the finished product does not meet your expectations. To avoid disappointment it is vital to have a solicitor review the contract for sale and ensure these 4 factors:

1. That the contract reflects your expectations of the final product
   The contract should clearly set out the contractor’s promises, including a sufficiently detailed schedule of all fixtures, fittings and finishes. The contract should also specify the acceptable limits for any change in sizes of the rooms.
   
   
2. That the contract sets out your rights during and after construction
   Do you have any say in the appliances and finishes that are used? Can you re-sell or even visit the property during construction? What if construction is delayed? Your solicitor will ensure these questions and more are answered.
   
   
3. That the builder holds the right insurance
   Depending on the size and nature of the project, the developer or builder may not have to hold a home warranty insurance policy giving you protection against faulty workmanship and materials.
   
   
4. That the contract sets an acceptable “sunset date.”
   The sunset date is the date for completion. If the developer fails to deliver the final product by that date, you can get out of the contract and have your deposit refunded. The sunset date must be reasonable and suit your circumstances.

If you are considering purchasing a property off the plan, we can advise you and outline the dangers with proceeding and help you eliminate some of the risk by requesting amendments to the contract.