To assist practitioners advising clients who are purchasing off the plan, a new precedent has been added to the By Lawyers Purchase of Real Property (Vic) guide.
The Enclosure – Considerations when purchasing off the plan provides a potential purchaser with plain language information about:
- What ‘off the plan’ means.
- The risks of purchasing off the plan.
- The advantages of purchasing off the plan.
The enclosure covers all the pertinent considerations for a purchaser before entering into a contract to purchase an off the plan property. The potential risks are clearly stated, including:
- Being locked in until the sunset date.
- Potential for loss if the market deteriorates between the day of sale and the settlement date.
- Special conditions that operate in the vendor’s favour.
- Possible dissatisfaction with finished product.
- Changes to the building.
- Changes to the owners corporation.
- Additional legal costs being involved.
A related new precedent ‘Initial letter to proposed off the plan purchaser’ has also been added.
Both new precedents can be found in folder A. Getting the matter underway on the Purchase of Real Property (Vic) matter plan.
This helpful new precedent has been created by our Victorian property author Russell Cocks. It was developed in response to a request from a By Lawyers subscriber.