Good afternoon, it’s Stephen Kwok from Ensure Legal. Today, I want to spend about a minute to talk about off-the-plan contracts and things that a buyer needs to be aware of when signing one.
1. The Contract Date
The first thing to consider is the contract date. This refers to the date when the last party signs the contract. Most calculations, important dates, and terms will start from this contract date. Keeping track of when this happens is crucial, as it influences when various obligations come into effect.
2. Finance and Building Clauses
Another important point is that most off-the-plan contracts do not include a finance clause or building and pest clause. This means that from a buyer’s perspective, even if you are unable to obtain finance later on, you are still required to honor the terms of the contract.
3. Sunset Period
Most off-the-plan contracts come with a sunset period. This is the time within which the seller must create and register a title for the property to transfer it to the buyer. For vacant off-the-plan land contracts, the sunset period must not exceed 18 months. For body corporate or strata-titled properties in Queensland, the sunset period must not exceed five and a half years.
4. Settlement Date
The settlement date for an off-the-plan contract is slightly different compared to an established property. The seller must first create a title for the property, and Queensland law requires the seller to give the buyer at least 14 days’ notice before settlement takes place. As a buyer, you must ensure you have enough funds, including any financing required, to settle on the 14th day.
I hope you learned something about off-the-plan contracts today. Thank you.
