The contract of sale for buildings purchased off the plan, that is before the plan has been certified by council or registered at the Land Registry, is usually lengthy. It is important to read the contract carefully and to understand it.
- Have your lawyer check the contract of sale.
- Check the measurements of the property against the plan of subdivision.
- Have an independent architect or builder appraise the plans and specifications.
- Check the rules of the owners corporation.
- If appropriate, get an independent appraisal of the rental value of the property.
Unless the contract provides otherwise, a purchaser may terminate a contract if after eighteen months from the date of the contract of sale, the plan of subdivision has still not been registered.
Stamp duty is payable on the value of the land and building as at the date of the contract of sale. If construction or refurbishment is yet to commence, a reduced amount of stamp duty is payable compared with buying an existing or refurbished building.