Sometimes strata units are advertised for sale even before the building has been constructed. Sometimes even before construction has commenced. The design of the building and sketches of its final appearance may be included in advertising material well before occupation is possible.

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.

Stamp duty payment may be deferred by up to 12 months (meaning that you have up to 15 months). The NSW Government also provide stamp duty exemptions or discounts for off the plan apartments. Your conveyancer can advise you what exemptions or discounts may be available to you.

The conditions of the contract should be closely checked. We can provide you with comprehensive advice on the benefits or restrictions provided by the terms of the contract. For example, consideration should be given to whether there are any penalties for withdrawing from the contract. Other questions you might need to ask could include:

• Can I make changes to the finishes in the kitchen and bathroom?
• Can I select appliances such as stoves and dishwashers and items such as floor and wall tiles?
• Can I visit the site during construction?
• If the building is finished earlier than expected, has finance been suitably arranged?
• What are my rights if construction is delayed?
• Is my deposit secure if the building doesn't proceed?
• Can I on-sell during the construction period?

Last updated on September 24, 2011 by Webmaster