Off-the-plan developments in Australia refer to a property purchase arrangement where buyers agree to purchase a property, typically an apartment or a unit in a multi-unit complex, before the construction of the building is completed or even started. The term “off the plan” means that the property is sold based on the architectural plans, designs, and specifications, rather than a physical structure that already exists.
Here’s how the process typically works in Australia:
- Marketing and Pre-Sales:Developers promote their new property development project by showcasing architectural plans, artist’s impressions, and the anticipated features and specifications of the properties..
- Contracts:Interested buyers sign a contract to purchase a property within the development. This contract outlines the agreed-upon price and terms of the purchase, as well as the expected completion date of the project.
- Deposit:Buyers are usually required to pay a deposit, typically around 10% of the purchase price, when signing the contract. This deposit is held in a trust account until the project’s completion.
- Construction:The developer proceeds with the construction of the property. During this period, buyers have limited control over the design and layout of their specific unit, as these are usually predetermined.
- Completion:Once the construction is finished, buyers take ownership of the property, and settlement occurs. The remaining balance of the purchase price is paid, and the property is transferred to the buyer’s name.