Off the Plan Property Sales occurs when a property developer sells apartments in a multi-storey building that has not yet been built yet. Sometimes the term ‘off the plan’ refers to subdivisions of vacant land. The same principles apply to both.
Whether strata plan or subdivision of vacant land, the Contract for Sale is based on the standard Contract for Sale of Land 2005 edition published under copyright by the Law Society of NSW and The Real Estate Institute of New South Wales, substantially altered with complex special conditions. The special conditions modify the Contract to make it an ‘off the plan’ contract.
Usually after the contract is signed and exchanged, a period of up to two years or more may elapse until completion. In this time the property is built, the strata plan lodged, and several more properties may be sold off the plan to other purchasers. This is often a requirement to qualify for development finance.
The special conditions must allow the vendor sufficient room to acquire the land (if it has not already been bought), build within a reasonable time and allow for delays. At the same time it should bind the purchaser, and still be acceptable for the purchaser to sign.
All off the plan contracts are subject to the vendor effecting the registration of the strata plan or subdivision by a certain date (commonly known as the sunset date).
Also Included are the Special Conditions for Off The Plan
- Pages 13 – 30 Special conditions for Off The Plan Property Sales including:
- The purchaser may put down less than 10% deposit but the vendor will be entitled to the full 10% on default.
- Deposit Bonds, Bank Guarantees or Cash deposits can be used.
- The Vendor may make By Laws in addition to or in replacement of those by-laws set out in Schedule 1 of the Strata Schemes Management Regulation 2005 (the “Schedule 1 By-Laws”)
- Off The Plan Property Sales suitable for both high rise and low rise residential strata plan projects
- VARIATIONS TO THE PRINTED CLAUSES OF THIS CONTRACT
- UNREGISTERED VENDOR
- REGISTRATION OF PLANS
- DEPOSIT BOND
- LATE COMPLETION
- VENDOR’S DISCLOSURES
- DEFECTS WARRANTY
- CHANGES TO PLANS
- CHANGES TO EASEMENTS COVENANTS RESTRICTIONS & BYLAWS
- STRATA TITLE
- MANAGEMENT AGREEMENT
- PURCHASER’S AGREEMENT
- WATER RATES AND INSURANCE
- COUNCIL RATES
- PEPRESENTATIONS, WARRANTIES AND ACKNOWLEDGMENTS.
- AGENT AND RESALE PRIOR TO COMPLETION
- FIRB REQUIREMENTS.
- LODGEMENT BY PURCHASER OF CAVEAT.
- EXISTING ENCUMBRANCES.
- REPLACEMENT OF DOCUMENTS
- DEVELOPMENT/CONSTRUCTION ACTIVITIES.
- FINISHES AND FITTINGS
- DIRECTORS GUARANTEE IF CORPORATE PURCHASER.
- SECTION 149 CERTIFICATE
- DEPRECIATION SCHEDULE
- SECTION 109 CERTIFICATE
- ADDITIONAL VENDOR DISCLOSURES
- HOME OWNERS WARRANTY [DELETE AS APPLICABLE].
- HOME OWNERS WARRANTY [DELETE AS APPLICABLE]