Look For These Things In The Contract While Buying A Home Off-Plan

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Buying a house off-plan has both benefits and disadvantages. Luckily, you will have an opportunity to scrutinize the contract and satisfy yourself that the purchase is worth it. Here are some of the specific issues you should confirm the contract handles:

Full Plan Disclosure

The disclosure contains the details and specifications of the proposed building. This includes the floor plans of the exact property you are interested in as well as the plans for the entire property development. This should allow you to determine whether the property will be built to your standard and is being sold at the right price. The more detailed your plan is, the better the contract is.

Deposit and Its Interest

Just like other forms of property purchases, you will have to part with a deposit for the off plan property purchase. The contract should specify how much of a deposit you should pay and what happens to the interest it earns during the construction. This is necessary because the deposit is usually put in an interest-earning account, and the interest it earns may go to the buyer, seller, or to both parties; the contract should specify.

Finance Contingency

If you will be buying the hose on a mortgage, like most people do, then it is also advisable to confirm that the contract has a finance contingency. This is good because you cannot be sure that you will get the loan to complete the purchase. The finance contingency ensures that you can pull out of the agreement without a penalty if you don't get the loan. Of course, it will also specify how long you have to pull out of the contract without incurring a penalty if you can't find a loan.

Completion Timeline

Lastly, the contract should also specify how long the developer has to complete the construction. Just note that the construction duration will be an estimate; the developer has some flexibility as far as the completion timeline is concerned. Of course, a developer shouldn't take your money and sit on it for years in the guise of delayed construction. The contract should allow you to pull out of the agreement if the delays become too much for your liking.

It is possible to buy a property without using a real estate agent, but it isn't advisable, especially for an unconventional purchase. Buying an off-plan property is definitely unconventional and calls for the use of an experienced agent. 


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