5 Common concerns buyers face when buying an off the plan townhouse
Since the purchase of a property is big financial and usually a lifetime investment, when deciding to or not to purchase a townhouse or any other property type off the plan, buyers frequently have some well-justified concerns. Here are the 5 Common concerns buyers face when buying an off the plan townhouse. These are the frequent questions that every buyer needs to get answered before purchasing a property off the plan.
Will I get the same townhouse that was promised?
It is in the developers best interest to deliver what is promised. However, due to financial matters, time limitations or regulatory controls, they sometimes make changes to the project, whether it is a change in the design, material or construction itself. The good news is that the buyer is protected by the contract with what is called defects liability clause. Having that in mind, the developer must consult the buyer when making any changes that are not the part of the original deal. The developer is obligated to deliver the promised quality, but sometimes there are failed expectations on the buyer’s side. It is a risk all buyers have to take.
Are my rights protected?
The contract has to be detailed and cover all legal matters that protect the buyer. The disclosure statement is there to ensure the property purchase and future ownership of the buyer. Sunset clause is there to ensure that the construction will be finished on time, and if not, the deposit must be returned. Withdrawal cause and Cooling-off period are related to conditions in which the buyer can back off of the purchase and defects liability clause secure the rights of making objections in the case of defects made on the house. If in doubts, it is always a good advice to consult with the legal adviser.
What are potential dangers I could face when buying off the plan?
Apart from not getting the expected results, the other risks include construction delays and pauses, not respecting the sunset clause and bankruptcy of the developer. Most of the time, fortunately, if the contract is explicit and legal as it should be, the developer is obligated to return the deposit. For the investors, the danger can be property value going down where the purchase proves not to be financially rewarding.
Will the change in property value, after the contract is signed, affect me?
When buying off the plan, the price and the deposit are fixed and determined by the date the contract is signed, Therefore, if the property value changes, even drastically, buyers are still protected by the contract and will not be affected. The investors, however, still face the problem of property value variations, as mentioned above.
Can I change my mind and withdraw from the off the plan purchase?
The answer here is yes, but there are certain terms under which the withdrawal is possible. For example, in the case of delayed construction, the construction terms not being met, or violating the agreements made between two parties, both developer and the buyer have the right to withdrawal. That is why withdrawal conditions have to be thoroughly analysed, as not all contracts are the same.
Are you interested to purchase an off the plan townhouse? Check out this article about off the plan townhouses in Melbourne, Victoria, Australia or this article about buying a townhouse in South East Melbourne. There is more great information about what you should know before making the decision to buy.