is a term for describing property that has not yet been built, so it is bought
based on the plans i.e “off-plan”.

Generally developers invest a lot in buying the land and in constructing
the property and it is common practice for them to sell plots, houses and flats
even before they are built as it helps to raise money to fund the construction.

Most buyer’s will see a show home as an example of what the property
they are buying will look like, together with the drawings  or models.

Why would any one buy off-plan property?

A lot of people buy off-plan as an investment. Buying off
plan usually means you pay a reservation fee, or a deposit and then the balance
is paid much later when the property is ready for occupation. In this time as the
development takes shape, the value of the properties often rise as the general
public start to take interest , and the investors make their profit from the difference
in the off-plan price and the price once the building is completed.

New Build Properties

If you wish to buy a new build home from the original developer
you will often have to buy it off-plan as described above, but there will
always be new build homes available once the development is fully constructed ,
sometimes marketed directly by the developer but more likely being resold by an
investor who has bought it off-plan

Are there any differences when buying off-plan or new build?

Yes buying off-plan or new build has some marked differences
from the usual conveyancing transaction, examples are :
request quote

Reservation fee

You will normally need to pay a non-refundable reservation fee to secure your interest in
the property. If you miss any deadlines or fail to complete you will most
likely lose your deposit so it is important to instruct a solicitor who is familiar
with dealing with new build properties and working to strict timelines

Time between exchange and completion

In a normal transaction the time between exchange and
completion is usually short i.e a few days to a few weeks, but when you buy
off-plan it could be anything form 6 months to a number of years to allow time
for the construction of the property.

Completion notice

As there is a long delay between exchange and completion, the contract will as a
norm specify that there will be a completion notice to be served on the buyer
once the property is ready it swill usually allow 14 days for completion , so
it will be important for the buyer to have a mortgage or funding ready and also
to arrange an inspection of the property.

Incentives and options

There will usually be a range of incentives and options such as
furnishing and white goods and also a chance to choose the fixtures and
fittings, the cost of which are often paid by the buyer

Do you need a solcitor who is experienced in dealing with new build and off-plan properties? Please email property@olaleslie.com

Ola Kupoluyi, Partner
Ola Leslie Solicitors

The contents of this page are intended for general information purposes only and shall not be deemed to be, or constitute legal advice.  We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this page.