Strata Title FAQ - Should I buy a unit before it is built?

Date: March 03, 2011

Q. I'm looking at buying a unit in Chatswood and have seen work on a building site where there's a sign saying 'For sale: 2 and 3 bedroom luxury apartments: 85% of apartments sold. Don't miss out.' Should I act now as they seem to be selling quickly or am I better off waiting?

A. It has been common over some years to sell home units 'off-the-plan', that is, where the units are being sold while still in the course of construction and before being completion. This of course assures the developer / builder/ vendor that the properties are actually being sold and that therefore they will receive their return on their investment sooner rather than later. The problem from a buyer's point-of-view is that he or she cannot see what they're going to end up with. The building and with it, the individual units might end up fraught with a multitude of problems. The purchase contract cannot foresee all of the practical problems which may eventuate. At best the contract may provide certain ways by which certain problems can be overcome but this is not a guarantee that the finished product will be free of faults.