In the property world, selling off the plan is a common phrase used to refer to the sale of properties [typically units, apartments or townhouses], before they have been constructed or completed.

This is a common practice that allows developers to obtain financial backing for construction, as well as the concrete reassurance that there will be a sale at the end of the project.

Given the risks to buyers that come with buying a property that doesn’t yet exist, there are several legislative disclosure requirements developers are required to follow.

In part 4 of our property development series, we take you through the list of key documents developers will need to have ready to sell off the plan.

 

If you’re new to our property development series, you can read our earlier parts using the links below.

 

key documents property developers must follow when selling off the plan

 

disclosure documents

Developers must provide buyers with a disclosure statement that outlines key details about the property, such as floor plans, finishes, fixtures, fittings and any inclusions or exclusions.

The content of this statement is set by legislation, which must be strictly complied with to avoid the contract being able to be terminated by a buyer.

 

contract of sale

The contract should clearly state the terms of the sale, including the purchase price, payment schedule, settlement date and any special conditions. It may also include details about the cooling-off period and other rights of the buyer.

 

proposed plan of subdivision

Developers will need to provide prospective buyers with plans showing the layout of the development, including individual lots, common areas and any easements or covenants.

The format of this plan may vary depending upon the timing of the off the plan sale and the nature of the development.

 

architectural plans and drawings

Detailed plans and drawings of the property’s design, layout and dimensions are essential to give potential buyers an accurate representation of what they are purchasing.

 

finishes and fixtures schedule

A schedule outlining the quality and type of finishes, fixtures and fittings that will be used in the construction.

 

cooling-off period

Information about the cooling-off period, during which the buyer can withdraw from the contract. This period is typically 5 business days in Queensland but may be waived or shortened by agreement with a buyer.

 

body corporate information

If the property is part of a strata or community title scheme, relevant body corporate documents, such as proposed by-laws and contribution schedules, caretaking and letting agreements, must be provided.

 

title and ownership information

Clear details about the property’s title and ownership structure, including any encumbrances [a claim against a property by a party that is not the owner] or reservations.

 

insurance details

Information about any insurance coverage during the construction and after completion.

 

warranties and guarantees

Details about any warranties or guarantees provided by the developer, builder, or other relevant parties.

 

final thoughts

If you’re planning on selling off the plan, follow this list to be sure you’re complying with legislative requirements, as on the chance these fall short, the risks can be significant.

We understand that this can be a lot to get your head around, which is why seeking legal advice and staying up-to-date on the ever-evolving regulations can help mitigate these risks.

 

we’re here to help

If you need help getting your off-the-plan documents ready, reach out to our legal team at oneplace@businessdepot.com.au or give us a buzz at 1300BDEPOT.

 

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general advice disclaimer

The information provided on this website is a brief overview and does not constitute any type of advice. We endeavour to ensure that the information provided is accurate however information may become outdated as legislation, policies, regulations and other considerations constantly change. Individuals must not rely on this information to make a financial, investment or legal decision. Please consult with an appropriate professional before making any decision.