The skies above the Gold Coast and Brisbane are beginning to fill with cranes as confidence in the Queensland property market increases. With this huge increase in development comes an increase in new apartments flooding onto the market. Most of these apartments are sold before construction finishes in what is termed as an off-the-plan contract.
If you’re considering purchasing a new apartment off-the-plan there are a lot of benefits, however it’s important you’re aware of the risks and the requirements of the contract.
Off-the-plan contracts take on a different format to a standard contract of sale and must contain a lot of extra details and conditions. The first such condition they will contain is a Sunset Date, which is the date that construction is completed and the subdivision registered, with a separate title issued for the lot, or apartment.
Attached to the contract will be a disclosure document, which will contain more information on the development as a whole, including the proposed community management statement, caretaking and letting agreements and the plans for the development.
Also included with the contract will be information on the finishes to the specific apartment you are looking to purchase. You will often have the ability to choose from several different options for the finishes to the apartment that the developer has put together as options.
Things you may be able to choose include the finishes to the kitchen cabinets, flooring, curtains and kitchen appliances, amongst others. Some developers will also allow you to pay for extra inclusions for the apartment, such as higher quality finishing to surfaces, extra air-conditioning or fans, or upgraded appliances.
Each property is different and off-the-plan contracts vary a lot more than standard contracts, so it is often a good idea to have a conveyancing solicitor review an off-the-plan contract and go through it with you to explain exactly what you are purchasing and your rights and obligations when it comes to this type of contract.