Selling Off-The-Plan
Things to consider when selling any property include:
- Legal Advice
- Chattels & Fixtures
- Land Measurements
- Restrictions
- Easements
- Renovations, Extensions & Recent Building Work
- Lease
- Rates & Taxes
- Connection Of Services
- Zoning & Town Planning
- Auction Or Private Sale
- Access To Property
- Release Of Deposit
- Certificate Of Title
- Representations
- Capital Gains Tax
Also Consider When Selling Off-The-Plan:
- ARCHITECTS PLANS & BUILDING SPECIFICIATIONS:
If the Occupancy Permit has not been issued, a copy of the Architect’s drawings and building specifications must be included in the Contract of Sale.
- PROPOSED PLAN OF SUBDIVISION:
Have you engaged a surveyor to prepare the proposed Plan of Subdivision? The proposed Plan will also need to be included in the Contract of Sale.
- PLANNING PERMITS & BUILDING PERMITS:
Have you obtained all necessary Planning and Building Permits or will the Contract of Sale require special conditions making it subject to the said permits being obtained from the relevant authorities.
- LOT ENTITLEMENT & LIABILITY:
Does the proposed Plan of Subdivision contain common property? If so, are the lot entitlement and liabilities shown on the Plan of Subdivision appropriately apportioned for each property that forms part of the building?
- SUNSET CLAUSE:
A Contract of Sale should contain a sunset clause, which will enable the Purchaser and Vendor to cancel the Contract if the Plan or development is not completed by a certain date. The statutory period is usually 18 months from the date of sale, however, this can be extended to a longer period by way of a Special Condition.
- OWNERS CORPORATION RULES:
If the proposed Plan of Subdivision contains common property, have you considered special and/or additional rules you wish to apply to all owners or occupiers of the lots?
- OWNERS CORPORATION:
If the proposed Plan of Subdivision contains common property, the Owners Corporation is created once the Plan is registered. The Owners Corporation has an obligation to insure the common property and buildings. All lot owners are members of the Owners Corporation (unless specifically excluded). You should consider your insurance obligations and whether you wish to appoint an Owner’s Corporation manager to oversee all relevant matters relating to the operation of the Owners Corporation?
- STAMP DUTY BENEFITS:
In Victoria stamp duty benefits are available to off-the-plan buyers of real estate. You should be careful not to misrepresent the stamp duty position by stating that no stamp duty will be payable by the purchaser.
- FIRB- FOREIGN INVESTMENT REVIEW BOARD APPROVAL:
If you are intending to market your development to foreign investors, you may wish to consider obtaining FIRB approval to sell 50% of your development to foreign investors. Certain restrictions apply.
If the Occupancy Permit has not been issued, a copy of the Architect’s drawings and building specifications must be included in the Contract of Sale.
Have you engaged a surveyor to prepare the proposed Plan of Subdivision? The proposed Plan will also need to be included in the Contract of Sale.
Have you obtained all necessary Planning and Building Permits or will the Contract of Sale require special conditions making it subject to the said permits being obtained from the relevant authorities.
Does the proposed Plan of Subdivision contain common property? If so, are the lot entitlement and liabilities shown on the Plan of Subdivision appropriately apportioned for each property that forms part of the building?
A Contract of Sale should contain a sunset clause, which will enable the Purchaser and Vendor to cancel the Contract if the Plan or development is not completed by a certain date. The statutory period is usually 18 months from the date of sale, however, this can be extended to a longer period by way of a Special Condition.
If the proposed Plan of Subdivision contains common property, have you considered special and/or additional rules you wish to apply to all owners or occupiers of the lots?
If the proposed Plan of Subdivision contains common property, the Owners Corporation is created once the Plan is registered. The Owners Corporation has an obligation to insure the common property and buildings. All lot owners are members of the Owners Corporation (unless specifically excluded). You should consider your insurance obligations and whether you wish to appoint an Owner’s Corporation manager to oversee all relevant matters relating to the operation of the Owners Corporation?
In Victoria stamp duty benefits are available to off-the-plan buyers of real estate. You should be careful not to misrepresent the stamp duty position by stating that no stamp duty will be payable by the purchaser.
If you are intending to market your development to foreign investors, you may wish to consider obtaining FIRB approval to sell 50% of your development to foreign investors. Certain restrictions apply.
NOTE: This is information of a general nature only and cannot be relied upon as all encompassing. You must seek legal advice specific to your purchase and never commit to an agreement unless you have obtained that legal advice. Contact us for further information.
Architects Plans, Building Specificiations...
