Home Units - Buying a Unit "off the Plan"

Home Units are often constructed with some hurry. The reason is that they are large developments which have a considerable amount of money tied up for the developer and consequently there is a need to have the cash "turn­over" fast.

Occasionally this means the quality of construction is not as high as it should be. This is the first thing that you need to consider when you are buying a unit "off the Plan".

More often than not, buyers find that not all the work is completed in an acceptable manner and there is an urgency to finalise the sale.

Before you commit yourself to a contract, your purchase contract must provide for proper completion of construction. If you wish to tenant the unit, your tenant will demand a high standard and if you have to wait for repairs to be undertaken it may well cost you. Similar principles apply to building contracts and buying a home unit "off­the plan"

• a time limit for completion of construction is needed. If your contract does not have it, you may have to wait a long time for construction to be completed

• include full detailed plans approved by relevant authorities in the contract

• is the builder to have a discretion to vary the plans?

• make sure the contract includes a full list of equipment to be included in the unit. Do you wish to choose any equipment?

• is the equipment covered by manufacturer's warranties when you become an owner?

• is the Builder prepared to provide 'after sales service' or will you have to repair construction of your unit or worse still, what happens if improvements on Common Property are not repaired by the Developer?

• when you are negotiating your contract, are there already obvious faults which should be corrected? If so, additional conditions must be included in the purchase contract

• Check that a developer cannot amend the Body Corporate Rules or grant Special Privileges for some units. On occasions these changes can adversely impact on you, your tenants and any buyer from you.

  As always, to avoid disappointments, check the contract before you sign!