If you’re looking to buy your first apartment off the plan, the process may seem a little bit daunting. Fortunately, you’ll have expert guidance from 88 International’s team of experienced property doctors. Here is what you can expect after you’ve identified your dream off the plan property.
Expression of interest
The first thing you’ll need to do once you’ve decided on the property you’re purchasing off the plan is fill out an instruction to proceed form. This form is sometimes referred to as a reservation agreement. Whichever form it takes, it serves the purpose of pre-empting the contract by informing the developer you intend to buy the property. This document is what gets the ball rolling in preparation for the legal binding contract of purchase.
Once the aforementioned documents have been signed, the developer requires you to pay a holding deposit. This initial payment is usually a couple of thousand dollars, depending on the project. A holding deposit essentially reserves the property for you, and when the payment has been received the seller will remove your particular apartment from sale.
Your solicitor will be able to guide you through your contract if you have any concerns.
The next step is signing the contract that will legally bind you to purchase the property. This will group the construction and a portion of the land together in order to be one single purchase. This contract will include all information relevant to the sale, including any fees that may be required or entitlements you may have.
In every case, you should review the contract with your solicitor to ensure the contract is sound and that you’ll be getting the property you desire. This is also the best way to address any queries you have or aspects of the contract you don’t understand. When you’re happy with the contract, you may sign. Once this has been done it’s sent to the developer to sign. Until the developer has signed, the contract is not legally binding. It should be noted that even when signed by both parties this contract is still conditional based on whatever obligations have been outlined in the fine print.
Depending on the state you live in, there is often a cooling down period of a couple of days during which either you or the developer can back of out the contract. Once this cooling off period has elapsed, you will be required to pay the remainder of your deposit.
For more information about the process of buying off the plan, or to find about exciting developments in your city, contact 88 International now.