Buying ‘off the plan’

Sometimes strata units are advertised for sale even before the building has been constructed. The design of the building and sketches of its final appearance may be included in advertising material well before occupation is possible. Purchasing a strata unit under these circumstances is commonly known as 'buying off the plan'.

Usually a contract to purchase is signed, but the date for completion of the contract will not be until the building is completed and the strata plan is registered. The purchaser usually pays a deposit (perhaps ten percent of the agreed price of the unit) and the balance is paid when the contract is 'settled' upon the building's completion. There may be substantial demand for apartment accommodation in popular areas of NSW and it is sometimes easy for developers to market such strata units months before building work is completed.

There are a number of issues that people need to be aware of when buying off the plan, as they may effectively be entering into contractual arrangements without the customary benefit of being able to view and assess the finished product.