The process of buying an off-plan property can be slightly different from what some people may be used to. Therefore it is essential to understand the process involved before deciding to purchase off-plan properties. The process is as follows:
Research different developments and consult a mortgage advisor to discuss your circumstances and how they may impact your investment, Some of which include;
You will likely pay a reservation fee or an application fee indicating your interest to buy the off-plan property. Prices vary depending on the developer, and these fees are usually deducted from the deposit paid at later stages.
Arrange for the legal process of your property purchase to be handled by a professional lawyer. It is essential to confirm the status of the property at the relevant lands registry to find out the title and ownership of the property, ensure that the requisite building approvals have been obtained, and ensure that the property is not encumbered. The lawyer will check the company’s history, legal searches and go through the contract.
Research should be carried out to know if the developer has title to the property. It is worth noting that only the legal/beneficial owner of a property can pass a good title to a prospective buyer.
If everything is okay, the lawyer will give you the go-ahead to complete all paperwork and signatures, exchange contracts with the seller, and make payment of the deposit.
Here you will monitor the progress of the construction to check for any defects, if possible. For overseas investors, you might require your solicitor to prevent the build quality at every stage of construction. They should ensure that the developers do everything by the book and that the home you purchase is built to the best possible standard. This will give you peace of mind that everything in your new home will work correctly.
Pay any instalment payments agreed as per your contract.
Ensure that another survey is also conducted close to the completion date so that you can be sure that there are no issues to worry about.
Be ready for when the project is officially completed. When the build is complete, the developer will serve you a notice (2-4 weeks) before the completion date – giving you a certain amount of time to have everything in order and finalize the purchase.
You’ll pay the rest of the purchase amount, and the property is yours!