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Off The Plan Property Sales Agreement


Off The Plan Property Sales Agreement

Off the Plan Property Sales  

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

Includes:-

  1. GENERAL
  2. VARIATIONS TO THE PRINTED CLAUSES OF THIS CONTRACT
  3. UNREGISTERED VENDOR
  4. REGISTRATION OF PLANS
  5. DEPOSIT
  6. DEPOSIT BOND
  7. LATE COMPLETION
  8. VENDOR’S DISCLOSURES
  9. CONSTRUCTION
  10. DEFECTS WARRANTY
  11. CHANGES TO PLANS
  12. CHANGES TO EASEMENTS COVENANTS RESTRICTIONS & BYLAWS
  13. STRATA TITLE
  14. MANAGEMENT AGREEMENT
  15. PURCHASER’S AGREEMENT
  16. WATER RATES AND INSURANCE
  17. COUNCIL RATES
  18. PEPRESENTATIONS, WARRANTIES AND ACKNOWLEDGMENTS.
  19. CAPACITY
  20. AGENT AND RESALE PRIOR TO COMPLETION
  21. FIRB REQUIREMENTS.
  22. LODGEMENT BY PURCHASER OF CAVEAT.
  23. EXISTING ENCUMBRANCES.
  24. REQUISTIONS
  25. COMPLETION
  26. EXTENSIONS..
  27. REPLACEMENT OF DOCUMENTS
  28. DEVELOPMENT/CONSTRUCTION ACTIVITIES.
  29. FINISHES AND FITTINGS
  30. DIRECTORS GUARANTEE IF CORPORATE PURCHASER.
  31. SECTION 149 CERTIFICATE
  32. DEPRECIATION SCHEDULE
  33. SECTION 109 CERTIFICATE
  34. ADDITIONAL VENDOR DISCLOSURES
  35. HOME OWNERS WARRANTY [DELETE AS APPLICABLE].
  36. HOME OWNERS WARRANTY [DELETE AS APPLICABLE]

 

 

 

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