Off The Plans Purchase is Safer Now

Updated: May 31, 2019

Finally, buying off-the-plan is made safer. But it is still risky.

What is off-the-plan purchase? It's simply buying a property from a developer before it is being physically built. Such properties are often sold at a cheaper price to entice buyers.

What are the sunset clauses? Very often, hidden in fine print within the pages of the sales contract are clauses which allows the developer to void the sales contract if it takes them too long to build.

Sounds reasonable? Almost every developer sells this clause as a protection for buyers. As they "do not want to keep the buyers waiting, if their projects are delayed". Sounds totally reasonable.

However, in a rising market, developers frequently delays the building intentionally so that they can void the contract. Buyers have the option to get the deposit back (often without interest) or purchase the property at a higher price. So the developers essentially received some interest-free loans for a few years.