Jess Diaz
Founder Diaz & Diaz, Lawyers Sydney Australia
About the firm Diaz & Diaz Lawyers
Diaz & Diaz Lawyers was founded by Jess Diaz in Sydney Australia.
Solicitors at Diaz & Diaz act for individuals and companies both international and domestic on various areas of law.
Diaz & Diaz Lawyers have also worked extensively on pro bono cases and in areas that deal with important questions of law relating to human rights, in particular refugee law and immigration issues of migrants.
Diaz Lawyers have won several notable cases in this regard. One such notable case is the 1993 case of Bagus v Minister for Immigration which relates to the application of the criteria of "last remaining relative". The entire case can be read here.
For more information about Diaz Lawyers please visit their website at www.diazlawyers.com
MARN 9256453
5 Issues To Consider When Buying Off The Plan
Buying off the plan means buying a property while it is still being
planned and construction is not yet complete.
In short it means the plans are not yet registered.
In a bullish market buying off the plan may allow buyers to see increase value in the property before settlement takes place as well as save on stamp duty (as the price increases). However there are some potential pitfalls that should also be considered by buyers. Below Diaz Lawyers discuss 5 issues for purchasers to consider when buying off the plan.
1.
Quality of the Building Construction
You don’t get to see the product you’re actually buying.
If you buy off the plan, generally you do not have control or knowledge as to the quality of the
construction of your building or fixtures.
The building and your lot may be constructed to a different
standard, or lower standard then you expected. This may in turn affect the value of your property.
Further,
buying from a big name developer may not guarantee
the quality
of the
construction as
many builders sub- contract various parts of the project out.
2.
Change to size of lot and the
plans
When you buy off the plan you are buying a proposed plan that is not yet
registered or approved.
As you cant see the actual lot you are actually buying.
The size of your proposed lot may be different then the size
you thought you were buying. Also the description of your plan may
change for various reasons including requirements by council.
Generally the contract is drafted to not allow you to do much about
this.
3.
Special Privilege By-Laws
Special privilege by laws (exclusive use provisions) may entitle certain
lots to have exclusive use of common property and/or particular
voting rights. This may
not be clear at the time you purchase the property.
Diaz Lawyers recommends that you
ask your solicitor to advise you regarding this.
4.
Unknown Completion Time
When you buy off the plan you generally don’t know when completion will
be. It can happen much
earlier or later then you originally thought or budgeted for.
5.
Management Contracts
You should carefully check any Management contracts the developer has set up
between the owners corporation and a building manager.
If a Management contract exist then as an owner you will be
liable to the terms and fees locked in by the developer.
Diaz Lawyers notes that these terms may not be particularly favourable to you as a new owner.
In a bullish market buying off the plan may provide the purchaser
with an opportunity to buy a property for less than the value when
it’s finished. However,
we recommend that
purchasers should also weigh up the potential downsides as well to
make an informed decision.
Make sure your lawyer drafts the relevant special conditions
to appropriately address the above issues.
For more information please contact
Atty
Diaz at Diaz & Diaz, Lawyers on 9831 5278.
DISCLAIMER:
The information contained in this guideline is a summary only without any assumption of a duty of care by Diaz & Diaz. The summary is not intended to be nor should it be relied on as a substitute for legal or other professional advice. Under no circumstances will Diaz be liable for any incidental, special or consequential damages, including damages for loss of business or other profits arising in relation to use of this guideline. Any person buying or selling property should consult a Solicitor for their particular circumstances.
Liability limited by a scheme approved under Professional Standards Legislation.
Contact Diaz Lawyers
Diaz & Diaz
Level 1, 97 Main Street
Blacktown, NSW 2148 Australia
Telephone 9831 5278