Buying off the plan is a great way to
secure your home or apartment and
use the construction period to save
more towards your deposit. If you're
not sure what this process is like or
wondering, is it safe to buy off the
plan? Keep reading.
TIME TO GET READY
Buying off the plan will generally involve an extended settlement period. This gives purchasers the added advantage of having time to get financial affairs in order and in some cases, save the remainder of their home deposit before settlement takes place.
Contracts will generally provide for settlement at varying periods from the notice of settlement being issued by Mirvac, depending on your state for example:
Minimum settlement period is 21 days after the vendor serves notice of registration of the strata plan and a copy of the registered strata plan and any other document that was registered with that plan. Definition of “date for completion” in Mirvac contracts generally provide it is the later of: (a) 21 days after the vendor serves notice of registration of the strata plan and a copy of the registered strata plan and any other document that was registered with that plan; (b) 10 business days after the date the vendor serves a copy of an occupation certificate on the purchaser; and (c) 20 business days after the contract date.
There is no required settlement period, provided that the plan of subdivision has been registered and occupancy permit with respect to the property has been issued. The Mirvac sale contracts generally require purchasers to settle within 14 days after the happening of a particular event. Below is an example from one of Mirvac’s sale contracts: The Settlement Due Date is the date which is the later of 14 days after the date on which the Vendor’s Solicitor serves notice on the Purchaser or the Purchaser’s Solicitor: (a) that the Plan has been registered by the Registrar; (b) that an Architect’s Certificate has been issued for the Property; and (c) that a Certificate of Occupancy has been issued for the Property.
For off the plan strata and community title, the contract is taken to include a term providing that, despite any other term of the contract, settlement must not take place earlier than 14 days after the seller gives advice to the buyer that the scheme has been established or changed. For MPC product that is not community title the seller must give the buyer of the proposed lot, at least 14 days before the contract is settled: (a) A copy of the plan of survey for the lot registered under the Land Act 1994 or Land Title Act 1994; and (b) A statement prepared by a cadastral surveyor to the effect that there are no differences between the information contained in the Registered Plan and the information contained in the disclosure plan for the lot given to the buyer.
There is no required settlement period. Mirvac contracts at the earliest 5 business days and latest 13 business days after the happening of a particular event. Below is an example from one of our sale contracts for determining the Settlement Date: The Settlement Date will be the date which is the later of: (a) 13 Business Days after the Strata Plan is registered; and (b) 5 Business Days after the last to occur of the following: (i) the issue of a separate Certificate of Title for the Property; and (ii) the date on which the Seller or the Seller’s representative issues a notice that the construction of the Property has reached practical completion; or any other date agreed by the Seller and the Buyer in writing. Our Settlements team will be in constant contact as to when to expect settlement so it does not come as any surprise.
Mirvac properties purchased off the plan can be secured generally for a 10% deposit, but in some communities as little as $1000 at contract signing. The balance of the purchase price doesn’t have to be paid until construction is complete, giving you more time to save funds to use towards your final payment.
Early purchasers will enjoy a greater choice of what’s available in a development, so you can better select options that meet your first home criteria whether it be the position or aspect of a block of land, or floorplan of an apartment.
If buying a home or apartment prior to construction, it also allows you generally to choose your preferred colour scheme and options. This gives you the freedom to tailor your apartment or home to be more reflective of your personality.
WHAT HAPPENS WHEN YOU BUY OFF THE PLAN?
At Mirvac, we endeavour to keep all of our customers informed about their property’s progress.
When your contract becomes unconditional, you will be contacted by your dedicated Settlement Executive. Throughout the construction process, your Settlement Executive will continue to keep you updated throughout the construction period, sending your updates along the way.
Once your home or apartment is completed, your Settlement Executive will invite you to a Final Presentation. At this inspection, you are walked through your new home to check that the quality, finishes and inclusions are as expected. After this inspection takes place, Mirvac will instruct the solicitors to proceed with the settlement of your property.