New builds and off-the-plans

What it is

Buying off the plans means signing a long agreement now for a home that will be finished later. The developer's further terms replace much of the standard agreement. Settlement is usually triggered by the Code Compliance Certificate issuing, and the timing between that trigger and the day you have to pay is often short.

Why it matters

Your bank's pre-approval may expire before the build finishes. A sunset clause can let the developer cancel if the build runs late, sometimes at a point where prices have risen. A Certificate of Acceptance is not the same as a Code Compliance Certificate, and the difference affects insurance and resale. These are things to negotiate at the start, when you have leverage.

How we handle it

We go through the developer's further terms clause by clause and rate each one, so you know which are standard, which are negotiable and which should stop you signing. We also check the title timeline, the residents' society rules and any ongoing charges like infrastructure levies that run for decades.

Common traps

• Assuming the sunset date protects you. It usually protects the developer.
• Not noticing that there is no retention held for defects after settlement.
• Agreeing to a five working day settlement after CCC without checking whether your bank can meet it.
• Infrastructure encumbrances that add an annual charge for thirty years, as in parts of Milldale.