Sale of strata apartments “off the plan”, i.e. before they are built, are common with new developments. In a rising market, purchasers are keen not to miss out or to lock in a price which they expect to be less than the value of the apartment when completed.
Sale of strata apartments “off the plan”, i.e. before they are built, has long been common with new developments. Developers typically require pre sales to satisfy lending requirements. Purchasers have historically been keen not to miss out or to lock in a price which they expect to be less than the value of the apartment when completed. However, in the current market, purchasers may have lost that enthusiasm and be looking to a way out of the contract.
The purchase of a home will probably be the most significant commitment to expenditure many of us will ever make. No sensible person enters into such a transaction without qualified legal advice and representation on the conveyance. And yet, when it comes to the construction or refurbishment of a home, owners all too often accept a building contractor’s terms without obtaining legal advice. Even where the price for the building work amounts to a six or seven figure sum the cost of an independent legal review of the proposed contract will routinely fall between $2,000 - $5,000; a cost effective and sensible precaution given the frequency with which construction work can go awry.
Changes to the Swimming Pools Act 1992 and regulations come into force on 29 April 2016 and will have a direct impact on the sale, purchase or lease of properties with a swimming pool or outdoor spa.
Since 29 October 2013, all pool owners have been required to register their pools on the NSW Government swimming pool register website. Pool owners are now required to provide a certificate of compliance or occupation certificate for the pool or outdoor spa at the time of selling or leasing their property.
On 24 November 2015, the Conveyancing Amendment (Sunset Clauses) Act 2015 ("the Act") was assented to by the NSW Parliament and came into force. The preamble states that it is an Act "to prevent a developer from unreasonably rescinding an off the plan contract for a residential lot under a sunset clause."
Strong pressure on Sydney property prices and an acute shortage of suitable development sites has made it possible for neighbours acting together to achieve excellent prices for properties which in aggregate represent a suitable development site. This is illustrated by the recent sale of nine St Leonards houses, which were sold for more than $66 million to a Hong Kong based investor.
Conveyancing
At Bannermans, we provide the full range of conveyancing services to our clients. David Bannerman, the principal of Bannermans, is an Accredited Property Law Specialist with the Law Society of New South Wales and has over 15 years extensive experience in all aspects of conveyancing. Combined with the expertise of the Conveyancing Team, Bannermans is able to efficiently assist its clients through the broad range of issues associated with the most complex conveyancing matters.
Buying a strata unit “off the plan”, before it has been built, has long been common.
As compared with buying an existing property, there are many potential benefits,e.g. good pricing offered by developers needing to satisfy finance requirements, potential capital gain during the period between signing the contract and settlement, possible government first home buyer assistance, flexibility regarding floor plan and inclusions and more time to arrange your affairs before moving.
Option agreements are an increasingly common means by which developers secure development sites. There is good reason for that, as they provide developers with flexibility and assist with managing cash flow and liability.
Owners of multiple properties may be getting NSW’s first homeowner grant and stamp duty concession despite not qualifying for it, cheating the government out of taxpayer revenue.
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NORTH SYDNEY NSW 2060
PO Box 514
NORTH SYDNEY NSW 2059
T: (02) 9929 0226
F: (02) 8920 2427
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