Should I buy a property 'off the plan'?

Buying a property 'off the plan' means committing to the purchase of a property not yet built, based on the building plans.

Many builders sell units or townhouses prior to their completion or completion of the development in order to raise money to fund the development.

However, there are some risks in purchasing a property 'off the plan'. The property market can move down as well us up and so it could mean that you lose money on buying a property before it is completed.

Furthermore, there is also a chance that you may not end up with quite what you expected or what was sold to you buy the builder.

A good example of this is seen in recent case law. A Sydney investor purchased an apartment 'off the plan'. The agent selling the property promised '180-degree water views', however when the complex was finally completed, the investor's view that he had been promised was obstructed altogether by a wall.

The investor argued with the builder he purchased the property from that this made the contract void and thus his money given as a deposit should be returned to him. The builder refused.

The investor then took his case all the way up to the NSW Court of Appeal. The Court ruled in his favour finding that as he had relied on the misrepresentation of the agent when deciding to purchase the property, the contract was void. The builders were ordered to return the buyer's deposit.

Whilst the case was remedied in the buyers favour eventually, this tale acts as a warning both for purchasing property 'off the plan' and also about contracts in relation to these sales and when the buyer has the right to rescind.

Contact Us

If you are thinking about buying a property off the plan or for any other matters relating to property transactions or property disputes, contact Szabo & Associates Solicitors today. At Szabo & Associates Solicitors we can advise on all aspects of property law. Call us on (02) 9281-5088 or fill in the contact form to the right of this page.